CFPBFinal Rule
Civil Monetary Penalty Inflation Adjustment
Finance & Banking
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Summary
The Consumer Financial Protection Bureau (CFPB) is adjusting the maximum fines it can impose on companies that break consumer protection laws to account for inflation. This means penalties for financial companies that harm consumers—like predatory lending or hidden fees—will increase to reflect the rising cost of living and maintain the rules' effectiveness.
Key Points
- 1The CFPB is raising the dollar amounts of civil penalties it can fine companies, since inflation has made old penalty amounts worth less in today's money
- 2This affects financial companies that break consumer protection laws, including banks, credit card companies, and payday lenders
- 3Higher penalties make it more costly for financial companies to break the rules, which encourages them to follow consumer protection laws more carefully
- 4Consumers benefit because companies face stronger incentives to treat customers fairly and follow regulations protecting them from fraud and unfair practices
- 5The adjustment happens automatically each year to keep pace with inflation, so penalties stay meaningful over time
Key Dates
Published
January 8, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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