CFPB issues interim rule to adjust civil penalties for inflation

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The CFPB has published an interim final rule to adjust the civil penalties within its jurisdiction for inflation. The adjustments were required by the Federal Civil Penalties Inflation Adjustment Act of 1990 which, pursuant to a 2015 amendment, requires federal agencies to adjust the civil penalties within their jurisdiction by July 1, 2016 and then by January 15 every year thereafter.

The civil penalties adjusted by the CFPB are the Tier 1-3 penalties set forth in Section 1055 of Dodd-Frank, as well as the civil penalties in the Interstate Land Sales Full Disclosure Act, Real Estate Settlement Procedures Act, SAFE Act, and Truth in Lending Act.

The CFPB states in the supplementary information accompanying the interim final rule that it does not have to publish a notice of proposed rulemaking and provide an opportunity for comment because the interim rule is technical in nature and the adjustments “merely apply the statutory method for adjusting civil penalty amounts.”  The rule is effective July 1, 2016 but the CFPB nevertheless invites comments which must be received on or before July 14, 2016.

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