In accordance with requirements to annually update civil monetary penalties, the CFPB made an inflation adjustment to the maximum amount of each civil penalty within its jurisdiction. The new penalties are increased from last year by an OMB Cost-of-Living Adjustment Multiplier of 1.02522.
Examples of increases to Consumer Financial Protection Act (CFPA) violations are: Tier 1 penalty from $5,639 to $5,781; CFPA Tier 2 penalty from $28,195 to $28,906; and CFPA Tier 3 penalty from $1,127,799 to $1,156,242. Increases based on a per violation (including those where the violation was intentional) have also been made to the Interstate Land Sales Full Disclosure Act, Real Estate Settlement Procedures Act, SAFE Act, and Truth in Lending Act as well as to the annual caps for Interstate Land Sales Full Disclosure Act and the Real Estate Settlement Procedures Act.
Details regarding the specific increases may be found in the CFPB Civil Penalty Inflation Adjustments Final Rule. The final rule will become effective on the date of publication in the Federal Register.