The CFPB has issued a final rule regarding annual adjustments it is required to make under provisions of Regulation Z (TILA) that implement the CARD Act and HOEPA. The adjustments made by the final rule are effective January 1, 2014.
The CARD Act requires the CFPB to calculate annual adjustments of (1) the minimum interest charge threshold that triggers disclosure of the minimum interest charge in credit card applications, solicitations and account opening disclosures, and (2) the fee thresholds for the penalty fees safe harbor. These calculations must reflect changes in the Consumer Price Index (CPI) using the CPI in effect on the preceding June 1. The calculation did not result in a change to the current $1.00 minimum interest charge threshold. However, in the final rule, the CFPB increased the current penalty fee safe harbor of $25 for a first late payment and $35 for a subsequent violation within the following six months to, respectively, $26 and $37.
HOEPA requires the CFPB to annually adjust the HOEPA points and fees dollar threshold to reflect the annual percentage change in the CPI that was reported on the preceding June 1. In the final rule, the CFPB increased the current threshold of $625 to $632.