CFPB, Banking Regulators, and Others Adjust Civil Monetary Penalties for Inflation

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In January 2020, regulators including the CFPB, Federal Reserve Board, NCUA, OCC, FDIC, FTC, and FCC, each published a final rule in the Federal Register adjusting the maximum civil money penalty (CMP) amounts under their respective jurisdictions, to account for inflation.

Each year, pursuant to the Federal Civil Penalties Adjustment Act Improvements Act of 2015, federal agencies adjust their maximum CMPs by using an inflation multiplier provided by the Office of Management and Budget (OMB).  The OMB’s inflation multiplier for 2020 is 1.01764.

The CFPB’s inflation adjustments became effective on January 15, 2020.  The 2020 tier 1 penalty for 2020 is $5,883.00; the tier 2 penalty is $29, 416.00; and the tier 3 penalty is $1,176,638.00.  The 2020 annual cap is $2,048,915.00.  More details about the CFPB’s inflation adjustment can be found here.

The Final Rules detailing the inflation adjustments made by other relevant agencies are available at the following links: FDIC, FCC, FTC, Fed, NCUA, and OCC.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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