2025-00167. Civil Penalty Inflation Adjustments

Law	Penalty description	Penalty amounts established under 2024 final rule	OMB “cost-of-living adjustment” multiplier	New penalty amount 15
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A)	Tier 1 penalty	$7,034	1.02598	$7,217
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B)	Tier 2 penalty	35,169	1.02598	36,083
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C)	Tier 3 penalty	1,406,728	1.02598	1,443,275
Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2)	Per violation	2,451	1.02598	2,515
Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2)	Annual cap	2,449,575	1.02598	2,513,215
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1)	Per failure	115	1.02598	118
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1)	Annual cap	230,464	1.02598	236,451
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A)	Per failure, where intentional	230	1.02598	236
SAFE Act, 12 U.S.C. 5113(d)(2)	Per violation	35,516	1.02598	36,439
Truth in Lending Act, 15 U.S.C. 1639e(k)(1)	First violation	14,069	1.02598	14,435
Truth in Lending Act, 15 U.S.C. 1639e(k)(2)	Subsequent violations	28,135	1.02598	28,866

III. Procedural Requirements

A. Administrative Procedure Act

Under the APA, notice and opportunity for public comment are not required if the CFPB finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest.^[16] The adjustments to the civil penalty amounts are technical and non-discretionary, and they merely apply the statutory method for adjusting civil penalty amounts. These adjustments are required by the Inflation Adjustment Act. Moreover, the Inflation Adjustment Act directs agencies to adjust civil penalties annually notwithstanding section 553 of the APA,^[17] and OMB Guidance reaffirms that agencies need not complete a notice-and-comment process before making the annual adjustments for inflation.^[18] For these reasons, the CFPB has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. The amendments therefore are adopted in final form.

Section 553(d) of the APA generally requires publication of a final rule not less than 30 days before its effective date, except (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) as otherwise provided by the agency for good cause found and published with the rule.^[19] At minimum, the CFPB believes the annual adjustments to the civil penalty amounts in § 1083.1(a) fall under the third exception to section 553(d). The CFPB finds that there is good cause to make the amendments effective on January 15, 2025. The amendments to § 1083.1(a) in this final rule are technical and non-discretionary, and they merely apply the statutory method for adjusting civil penalty amounts and follow the statutory directive to make annual adjustments each year. Moreover, the Inflation Adjustment Act directs agencies to adjust the civil penalties annually notwithstanding section 553 of the APA,^[20] and OMB Guidance reaffirms that agencies need not provide a delay in effective date for the annual adjustments for inflation.^[21]

B. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.^[22] As noted previously, the CFPB has determined that it is unnecessary to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply.

C. Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995,^[23] the CFPB reviewed this final rule. The CFPB has determined that this rule does not create any new information collections or substantially revise any existing collections.

D. Congressional Review Act

Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the CFPB will submit a report containing this rule and other required information to the United States Senate, the United States House of Representatives, and the Comptroller General of the United States prior to the rule taking effect. The Office of Information and Regulatory Affairs (OIRA) has designated this rule as not a “major rule” as defined by 5 U.S.C. 804(2).

List of Subjects in 12 CFR Part 1083

• Administrative practice and procedure
• Consumer protection
• Penalties

Authority and Issuance

For the reasons set forth in the preamble, the CFPB amends 12 CFR part 1083, as set forth below:

PART 1083—CIVIL PENALTY ADJUSTMENTS

1. The authority citation for part 1083 continues to read as follows:

Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 note.

2. Section 1083.1 is revised to read as follows:

§ 1083.1

Adjustment of civil penalty amounts.

(a) The maximum amount of each civil penalty within the jurisdiction of the Consumer Financial Protection Bureau to impose is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C. 2461 note), as follows: ( print page 1357)

Table 1 to Paragraph ( a )

Law	Penalty description	Adjusted maximum civil penalty amount
12 U.S.C. 5565(c)(2)(A)	Tier 1 penalty	$7,217
12 U.S.C. 5565(c)(2)(B)	Tier 2 penalty	36,083
12 U.S.C. 5565(c)(2)(C)	Tier 3 penalty	1,443,275
15 U.S.C. 1717a(a)(2)	Per violation	2,515
15 U.S.C. 1717a(a)(2)	Annual cap	2,513,215
12 U.S.C. 2609(d)(1)	Per failure	118
12 U.S.C. 2609(d)(1)	Annual cap	236,451
12 U.S.C. 2609(d)(2)(A)	Per failure, where intentional	236
12 U.S.C. 5113(d)(2)	Per violation	36,439
15 U.S.C. 1639e(k)(1)	First violation	14,435
15 U.S.C. 1639e(k)(2)	Subsequent violations	28,866