Civil Penalty Inflation Adjustments

CourtConsumer Financial Protection Bureau
Citation87 FR 2314
Record Number2022-00672
Publication Date14 January 2022
2314
Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations
1
Public Law 101–410, 104 Stat. 890.
2
Public Law 104–134, sec. 31001(s)(1), 110 Stat.
1321, 1321–373.
3
Public Law 114–74, sec. 701, 129 Stat. 584, 599.
4
Section 1301(a) of the Federal Reports
Elimination Act of 1998, Public Law 105–362, 112
Stat. 3293, also amended the Inflation Adjustment
Act by striking section 6, which contained annual
reporting requirements, and redesignating section 7
as section 6, but did not alter the civil penalty
adjustment requirements; 28 U.S.C. 2461 note.
5
81 FR 38569 (June 14, 2016). Although the
Bureau was not obligated to solicit comments for
the interim final rule, the Bureau invited public
comment and received none.
6
See 12 CFR 1083.1.
7
84 FR 517 (Jan. 31, 2019).
8
Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note. As discussed in guidance
issued by the Director of the Office of Management
and Budget (OMB), the APA generally requires
notice, an opportunity for comment, and a delay in
effective date for certain rulemakings, but the
Inflation Adjustment Act provides that these
procedures are not required for agencies to issue
regulations implementing the annual adjustment.
See Memorandum for the Heads of Exec. Dep’ts &
Agencies from Shalanda D. Young, Acting Director,
Implementation of Penalty Inflation Adjustments
for 2022, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of
2015, Off. of Mgmt. & Budget (Dec. 15, 2021),
available at https://www.whitehouse.gov/wp-
content/uploads/2021/12/M-22-07.pdf.
9
82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12,
2018); 84 FR 517 (Jan. 31, 2019); 85 FR 2012 (Jan.
14, 2020); 86 FR 3767 (Jan. 15, 2021).
10
Inflation Adjustment Act sections 4 and 5,
codified at 28 U.S.C. 2461 note.
T
ABLE
1
TO
P
ARAGRAPH
(b)—Continued
Statute Adjusted civil
money penalty
Third Tier ...................................................................................................................................................................................... 2,202,123
12 U.S.C. 3110(a) ................................................................................................................................................................................ 50,326
12 U.S.C. 3110(c):
First Tier ....................................................................................................................................................................................... 4,027
Second Tier .................................................................................................................................................................................. 40,259
Third Tier ...................................................................................................................................................................................... 2,013,008
12 U.S.C. 3909(d) ................................................................................................................................................................................ 2,739
15 U.S.C. 78u–2(b)(1):
For a natural person ..................................................................................................................................................................... 10,360
For any other person .................................................................................................................................................................... 103,591
15 U.S.C. 78u–2(b)(2):
For a natural person ..................................................................................................................................................................... 103,591
For any other person .................................................................................................................................................................... 517,955
15 U.S.C. 78u–2(b)(3):
For a natural person ..................................................................................................................................................................... 207,183
For any other person .................................................................................................................................................................... 1,035,909
15 U.S.C. 1639e(k)(1) ......................................................................................................................................................................... 12,647
15 U.S.C. 1639e(k)(2) ......................................................................................................................................................................... 25,293
42 U.S.C. 4012a(f)(5) .......................................................................................................................................................................... 2,392
By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary of the Board under delegated
authority.
Ann Misback,
Secretary of the Board.
[FR Doc. 2022–00592 Filed 1–13–22; 8:45 am]
BILLING CODE 6210–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1083
Civil Penalty Inflation Adjustments
AGENCY
: Bureau of Consumer Financial
Protection.
ACTION
: Final rule.
SUMMARY
: The Bureau of Consumer
Financial Protection (Bureau) is
adjusting for inflation the maximum
amount of each civil penalty within the
Bureau’s jurisdiction. These
adjustments are required by 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 (Inflation
Adjustment Act). The inflation
adjustments mandated by the Inflation
Adjustment Act serve to maintain the
deterrent effect of civil penalties and to
promote compliance with the law.
DATES
: This final rule is effective
January 15, 2022.
FOR FURTHER INFORMATION CONTACT
:
Willie Williams, Paralegal Specialist;
Lanique Eubanks, Senior Counsel,
Office of Regulations, at (202) 435–7700.
If you require this document in an
alternative electronic format, please
contact CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION
:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990,
1
as amended
by the Debt Collection Improvement Act
of 1996
2
and further amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Inflation Adjustment Act),
3
directs Federal agencies to adjust for
inflation the civil penalty amounts
within their jurisdiction not later than
July 1, 2016, and then not later than
January 15 every year thereafter.
4
Each
agency was required to make the 2016
one-time catch-up adjustments through
an interim final rule published in the
Federal Register. On June 14, 2016, the
Bureau published its interim final rule
(IFR) to make the initial catch-up
adjustments to civil penalties within the
Bureau’s jurisdiction.
5
The June 2016
IFR created a new part 1083 and in
1083.1 established the inflation-adjusted
maximum amounts for each civil
penalty within the Bureau’s
jurisdiction.
6
The Bureau finalized the
IFR on January 31, 2019.
7
The Inflation Adjustment Act also
requires subsequent adjustments to be
made annually, not later than January
15, and notwithstanding section 553 of
the Administrative Procedure Act
(APA).
8
The Bureau annually adjusted
its civil penalty amounts, as required by
the Act, through rules issued in January
2017, January 2018, January 2019,
January 2020, and January 2021.
9
Specifically, the Act directs Federal
agencies to adjust annually each civil
penalty provided by law within the
jurisdiction of the agency by the ‘‘cost-
of-living adjustment.’’
10
The ‘‘cost-of-
living adjustment’’ is defined as the
percentage (if any) by which the
Consumer Price Index for all-urban
consumers (CPI–U) for the month of
October preceding the date of the
adjustment, exceeds the CPI–U for
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Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations
11
Inflation Adjustment Act sections 3 and 5,
codified at 28 U.S.C. 2461 note.
12
Inflation Adjustment Act section 5, codified at
28 U.S.C. 2461 note; see also Memorandum for the
Heads of Exec. Dep’ts & Agencies from Shalanda D.
Young, Acting Director, Implementation of Penalty
Inflation Adjustments for 2022, Pursuant to the
Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Off. of Mgmt. & Budget
(Dec. 15, 2021), available at https://
www.whitehouse.gov/wp-content/uploads/2021/12/
M-22-07.pdf.
13
See Inflation Adjustment Act section 2,
codified at 28 U.S.C. 2461 note.
14
Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
15
5 U.S.C. 553(b)(B).
16
Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
17
Memorandum for the Heads of Exec. Dep’ts &
Agencies from Shalanda D. Young, Acting Director,
Implementation of Penalty Inflation Adjustments
for 2022, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of
2015, Off. of Mgmt. & Budget (Dec. 15, 2021),
available at https://www.whitehouse.gov/wp-
content/uploads/2021/12/M-22-07.pdf.
18
5 U.S.C. 553(d).
19
Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
20
Memorandum for the Heads of Exec. Dep’ts &
Agencies from Shalanda D. Young, Acting Director,
Implementation of Penalty Inflation Adjustments
for 2022, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of
2015, Off. of Mgmt. & Budget (Dec. 15, 2021),
available at https://www.whitehouse.gov/wp-
content/uploads/2021/12/M-22-07.pdf.
21
5 U.S.C. 603(a), 604(a).
October of the prior year.
11
The Director
of the Office of Management and Budget
(OMB) is required to issue guidance
(OMB Guidance) every year by
December 15 to agencies on
implementing the annual civil penalty
inflation adjustments. Pursuant to the
Inflation Adjustment Act and OMB
Guidance, agencies must apply the
multiplier reflecting the ‘‘cost-of-living
adjustment’’ to the current penalty
amount and then round that amount to
the nearest dollar to determine the
annual adjustments.
12
The adjustments
are designed to keep pace with inflation
so that civil penalties retain their
deterrent effect and promote compliance
with the law.
13
For the 2022 annual adjustment, the
multiplier reflecting the ‘‘cost-of-living
adjustment’’ is 1.06222.
II. Adjustment
Pursuant to the Inflation Adjustment
Act and OMB Guidance, the Bureau
multiplied each of its civil penalty
amounts by the ‘‘cost-of-living
adjustment’’ multiplier and rounded to
the nearest dollar.
14
The new penalty
amounts that apply to civil penalties
assessed after January 15, 2022, are as
follows:
Law Penalty description
Penalty
amounts
established
under 2021
final rule
OMB ‘‘Cost-of-
Living
Adjustment’’
multiplier
New penalty
amount
Consumer Financial Protection Act, 12 U.S.C.
5565(c)(2)(A). Tier 1 penalty .................................................................. $5,953 1.06222 $6,323
Consumer Financial Protection Act, 12 U.S.C.
5565(c)(2)(B). Tier 2 penalty .................................................................. 29,764 1.06222 31,616
Consumer Financial Protection Act, 12 U.S.C.
5565(c)(2)(C). Tier 3 penalty .................................................................. 1,190,546 1.06222 1,264,622
Interstate Land Sales Full Disclosure Act, 15 U.S.C.
1717a(a)(2). Per violation .................................................................... 2,074 1.06222 2,203
Interstate Land Sales Full Disclosure Act, 15 U.S.C.
1717a(a)(2). Annual cap ...................................................................... 2,073,133 1.06222 2,202,123
Real Estate Settlement Procedures Act, 12 U.S.C.
2609(d)(1). Per failure ....................................................................... 97 1.06222 103
Real Estate Settlement Procedures Act, 12 U.S.C.
2609(d)(1). Annual cap ...................................................................... 195,047 1.06222 207,183
Real Estate Settlement Procedures Act, 12 U.S.C.
2609(d)(2)(A). Per failure, where intentional .......................................... 195 1.06222 207
SAFE Act, 12 U.S.C. 5113(d)(2) ..................................... Per violation .................................................................... 30,058 1.06222 31,928
Truth in Lending Act, 15 U.S.C. 1639e(k)(1) .................. First violation ................................................................... 11,906 1.06222 12,647
Truth in Lending Act, 15 U.S.C. 1639e(k)(2) .................. Subsequent violations ..................................................... 23,811 1.06222 25,293
III. Procedural Requirements
A. Administrative Procedure Act
Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the Bureau
finds that notice and public comment
are impracticable, unnecessary, or
contrary to the public interest.
15
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,
16
and OMB
Guidance reaffirms that agencies need
not complete a notice-and-comment
process before making the annual
adjustments for inflation.
17
For these
reasons, the Bureau 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.
18
At minimum, the Bureau
believes the annual adjustments to the
civil penalty amounts in § 1083.1(a) fall
under the third exception to section
553(d). The Bureau finds that there is
good cause to make the amendments
effective on January 15, 2022. 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,
19
and OMB Guidance
reaffirms that agencies need not provide
a delay in effective date for the annual
adjustments for inflation.
20
B. Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis.
21
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Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations
22
44 U.S.C. 3501–3521.
C. Paperwork Reduction Act
The Bureau has determined that this
final rule does not impose any new or
revise any existing recordkeeping,
reporting, or disclosure requirements on
covered entities or members of the
public that would be collections of
information requiring approval by the
Office of Management and Budget under
the Paperwork Reduction Act.
22
D. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Bureau
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).
IV. Signing Authority
The Associate Director for Research,
Markets and Regulations, Janis K.
Pappalardo, having reviewed and
approved this document, is delegating
the authority to electronically sign this
document to Laura Galban, a Bureau
Federal Register Liaison, for purposes of
publication in the Federal Register.
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 Bureau 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:
T
ABLE
1
TO
P
ARAGRAPH
(a)
Law Penalty description
Adjusted
maximum civil
penalty
amount
12 U.S.C. 5565(c)(2)(A) ............................................................. Tier 1 penalty ............................................................................. $6,323
12 U.S.C. 5565(c)(2)(B) ............................................................. Tier 2 penalty ............................................................................. 31,616
12 U.S.C. 5565(c)(2)(C) ............................................................. Tier 3 penalty ............................................................................. 1,264,622
15 U.S.C. 1717a(a)(2) ................................................................ Per violation ................................................................................ 2,203
15 U.S.C. 1717a(a)(2) ................................................................ Annual cap ................................................................................. 2,202,123
12 U.S.C. 2609(d)(1) .................................................................. Per failure ................................................................................... 103
12 U.S.C. 2609(d)(1) .................................................................. Annual cap ................................................................................. 207,183
12 U.S.C. 2609(d)(2)(A) ............................................................. Per failure, where intentional ...................................................... 207
12 U.S.C. 5113(d)(2) .................................................................. Per violation ................................................................................ 31,928
15 U.S.C. 1639e(k)(1) ................................................................ First violation .............................................................................. 12,647
15 U.S.C. 1639e(k)(2) ................................................................ Subsequent violations ................................................................ 25,293
(b) The adjustments in paragraph (a)
of this section shall apply to civil
penalties assessed after January 15,
2022, whose associated violations
occurred on or after November 2, 2015.
Laura Galban,
Federal Register Liaison, Bureau of Consumer
Financial Protection.
[FR Doc. 2022–00672 Filed 1–13–22; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2021–0689; Project
Identifier AD–2020–01589–R; Amendment
39–21898; AD 2022–02–01]
RIN 2120–AA64
Airworthiness Directives; Sikorsky
Aircraft Corporation Helicopters
AGENCY
: Federal Aviation
Administration (FAA), DOT.
ACTION
: Final rule.
SUMMARY
: The FAA is adopting a new
airworthiness directive (AD) for certain
Sikorsky Aircraft Corporation Model S–
92A helicopters. This AD was prompted
by a cracked main rotor stationary
swashplate assembly (swashplate
assembly). This AD requires visually
inspecting the swashplate assembly at
specified intervals and depending on
the results, removing the swashplate
assembly from service. The FAA is
issuing this AD to address the unsafe
condition on these products.
DATES
: This AD is effective February 18,
2022.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of February 18, 2022.
ADDRESSES
: For service information
identified in this final rule, contact your
local Sikorsky Field Representative or
Sikorsky’s Service Engineering Group at
Sikorsky Aircraft Corporation, Mailstop
K100, 124 Quarry Road, Trumbull, CT
06611; telephone 1–800–946–4337 (1–
800–Winged–S); email wcs_cust_
service_eng.gr-sik@lmco.com. Operators
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