In the May 7, 2013 issue of the Federal Register (78 FR 26489), the Bureau of Consumer Financial Protection (CFPB), issued a final rule that establishes a Consumer Financial Civil Penalty Fund (Civil Penalty Fund) into which the CFPB will deposit any civil penalty it obtains against any person in any judicial or administrative action under Federal consumer financial laws. Funds in the Civil Penalty Fund may be used for payments to the victims of activities for which civil penalties have been imposed under Federal consumer financial laws. In addition, to the extent that such victims cannot be located or such payments are otherwise not practicable, the CFPB may use funds in the Civil Penalty Fund for the purpose of consumer education and financial literacy programs. This final rule implements the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act for the Civil Penalty Fund. It gives the CFPB’s interpretation of what kinds of payments to victims are appropriate and establishes procedures for allocating funds for such payments to victims and for consumer education and financial literacy programs. The final rule is codified in the Code of Federal Regulations at 12 CFR Part 1075 and is effective May 7, 2013. If you wish to view or print a copy of the final rule, click here and scroll to pages 26501-26504. In addition, in the same issue of the Federal Register (78 FR 26545), the CFPB also issued a proposed rule seeking comments on possible revisions, adjustments, or refinements to the above final rule implementing the Civil Penalty Fund. For those wishing to comment on the proposed rule, comments must be received by the CFPB on or before July 8, 2013. To obtain a copy of the proposed rule and instructions on how to submit comments, please click here.
