83_FR_1534 83 FR 1525 - Civil Penalty Inflation Adjustments

83 FR 1525 - Civil Penalty Inflation Adjustments

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 83, Issue 9 (January 12, 2018)

Page Range1525-1527
FR Document2018-00399

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.

Federal Register, Volume 83 Issue 9 (Friday, January 12, 2018)
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Rules and Regulations]
[Pages 1525-1527]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00399]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1083


Civil Penalty Inflation Adjustments

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule.

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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, 2018.

FOR FURTHER INFORMATION CONTACT: Monique Chenault, Paralegal 
Specialist, Office of Regulations, Consumer Financial Protection 
Bureau, 1700 G Street NW, Washington, DC 20552, at (202) 435-7700.

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\ 28 U.S.C. 2461 note. 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 to make the initial catch-
up adjustments to civil penalties within the Bureau's jurisdiction.\5\ 
The June 2016 interim final rule created a new part 1083 and in Sec.  
1083.1 established the inflation-adjusted maximum amounts for each 
civil penalty within the Bureau's jurisdiction.\6\ 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).\7\
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    \1\ Public Law 101-410, 104 Stat. 890.
    \2\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 
1321-373.
    \3\ Public Law 114-74, section 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.
    \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\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.
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    Specifically, Federal agencies are directed to adjust annually each 
civil penalty provided by law within the jurisdiction of the agency by 
the ``cost-of-living adjustment.'' \8\ For annual adjustments after the 
initial catch up adjustments, 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 October of the prior 
year.\9\ 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.\10\ 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.\11\
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    \8\ Inflation Adjustment Act sections 4 and 5, codified at 28 
U.S.C. 2461 note.
    \9\ Inflation Adjustment Act sections 3 and 5, codified at 28 
U.S.C. 2461 note.
    \10\ Inflation Adjustment Act section 7, codified at 28 U.S.C. 
2461 note.
    \11\ Inflation Adjustment Act section 5, codified at 28 U.S.C. 
2461 note; Memorandum to the Exec. Dep'ts & Agencies from Mick 
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017), 
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
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    For the 2018 annual adjustment, the multiplier reflecting the 
``cost-of-living

[[Page 1526]]

adjustment'' is 1.02041.\12\ 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.\13\
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    \12\ Memorandum to the Exec. Dep'ts & Agencies from Mick 
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017), 
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
    \13\ In rounding to the nearest dollar, the Bureau has rounded 
down where the digit immediately following the decimal point is less 
than 5 and has rounded up where the digit immediately following the 
decimal point is 5 or greater.
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    The new penalty amounts that apply to civil penalties assessed 
after January 15, 2018 are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                      Penalty
                                                                      amounts     OMB ``Cost-of-
                  Law                      Penalty description      established       Living        New penalty
                                                                    under 2017     Adjustment''       amount
                                                                    final rule      multiplier
----------------------------------------------------------------------------------------------------------------
Consumer Financial Protection Act, 12   Tier 1 penalty..........          $5,526         1.02041          $5,639
 U.S.C. 5565(c)(2)(A).
Consumer Financial Protection Act, 12   Tier 2 penalty..........          27,631         1.02041          28,195
 U.S.C. 5565(c)(2)(B).
Consumer Financial Protection Act, 12   Tier 3 penalty..........       1,105,241         1.02041       1,127,799
 U.S.C. 5565(c)(2)(C).
Interstate Land Sales Full Disclosure   Per violation...........           1,925         1.02041           1,964
 Act, 15 U.S.C. 1717a(a)(2).
Interstate Land Sales Full Disclosure   Annual cap..............       1,924,589         1.02041       1,963,870
 Act, 15 U.S.C. 1717a(a)(2).
Real Estate Settlement Procedures Act,  Per failure.............              90         1.02041              92
 12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act,  Annual cap..............         181,071         1.02041         184,767
 12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act,  Per failure, where                   181         1.02041             185
 12 U.S.C. 2609(d)(2)(A).                intentional.
SAFE Act, 12 U.S.C. 5113(d)(2)........  Per violation...........          27,904         1.02041          28,474
Truth in Lending Act, 15 U.S.C.         First violation.........          11,053         1.02041          11,279
 1639e(k)(1).
Truth in Lending Act, 15 U.S.C.         Subsequent violations...          22,105         1.02041          22,556
 1639e(k)(2).
----------------------------------------------------------------------------------------------------------------

II. Legal Authority

    The Bureau issues this final rule under the Federal Civil Penalties 
Inflation Adjustment Act of 1990,\14\ as amended by the Debt Collection 
Improvement Act of 1996 \15\ and further amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015,\16\ which 
requires the Bureau to adjust for inflation the civil penalties within 
its jurisdiction according to a statutorily prescribed formula.
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    \14\ Public Law 101-410, 104 Stat. 890.
    \15\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 
1321-373.
    \16\ Public Law 114-74, section 701, 129 Stat. 584, 599.
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III. Procedural Requirements

A. Administrative Procedure Act

    Under the APA, 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.\17\ 
Pursuant to this final rule, Sec.  1083.1 is amended to update the 
civil penalty amounts. The 2018 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 the civil penalties annually 
notwithstanding section 553 of the APA,\18\ and OMB Guidance reaffirms 
that agencies need not complete a notice-and-comment process before 
making the annual adjustments for inflation.\19\ For these reasons, the 
Bureau has determined that publishing a notice of proposed rulemaking 
and providing opportunity for public comment are unnecessary. 
Therefore, the amendment is adopted in final form.
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    \17\ 5 U.S.C. 553(b)(B).
    \18\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.
    \19\ Memorandum to the Exec. Dep'ts & Agencies from Mick 
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017), 
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
---------------------------------------------------------------------------

    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.\20\ At a minimum, the Bureau believes the annual 
adjustments to the civil penalty amounts in Sec.  1083.1 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, 2018. The 
amendments to Sec.  1083.1 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 by January 15 of each year. Moreover, the Inflation 
Adjustment Act directs agencies to adjust the civil penalties annually 
notwithstanding section 553 of the APA,\21\ and OMB Guidance reaffirms 
that agencies need not provide a delay in effective date for the annual 
adjustments for inflation.\22\
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    \20\ 5 U.S.C. 553(d).
    \21\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.
    \22\ Memorandum to the Exec. Dep'ts & Agencies from Mick 
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017), 
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
---------------------------------------------------------------------------

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.\23\
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    \23\ 5 U.S.C. 603(a), 604(a).
---------------------------------------------------------------------------

C. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\24\ the 
Bureau reviewed this final rule. No collections of information pursuant 
to the Paperwork Reduction Act are contained in the final rule.
---------------------------------------------------------------------------

    \24\ 44 U.S.C. 3506; 5 CFR part 1320.
---------------------------------------------------------------------------

D. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
CFPB will submit a report containing this rule and other required 
information to the U.S. Senate, the U.S. 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 above, the Bureau amends 12 CFR part 1083 
as set forth below:

[[Page 1527]]

PART 1083--CIVIL PENALTY ADJUSTMENTS

0
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.

0
2. Section 1083.1 is revised to read as follows:


Sec.  1083.1  Adjustments 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:

------------------------------------------------------------------------
                                                             Adjusted
                                      Civil penalty       maximum  civil
       U.S. Code citation              description            penalty
                                                              amount
------------------------------------------------------------------------
12 U.S.C. 5565(c)(2)(A)........  Tier 1 penalty.........          $5,639
12 U.S.C. 5565(c)(2)(B)........  Tier 2 penalty.........          28,195
12 U.S.C. 5565(c)(2)(C)........  Tier 3 penalty.........       1,127,799
15 U.S.C. 1717a(a)(2)..........  Per violation..........           1,964
15 U.S.C. 1717a(a)(2)..........  Annual cap.............       1,963,870
12 U.S.C. 2609(d)(1)...........  Per failure............              92
12 U.S.C. 2609(d)(1)...........  Annual cap.............         184,767
12 U.S.C. 2609(d)(2)(A)........  Per failure, where                  185
                                  intentional.
12 U.S.C. 5113(d)(2)...........  Per violation..........          28,474
15 U.S.C. 1639e(k)(1)..........  First violation........          11,279
15 U.S.C. 1639e(k)(2)..........  Subsequent violations..          22,556
------------------------------------------------------------------------

    (b) The adjustments in paragraph (a) of this section shall apply to 
civil penalties assessed after January 15, 2018, regardless of when the 
violation for which the penalty is assessed occurred.

    Dated: January 4, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-00399 Filed 1-11-18; 8:45 am]
BILLING CODE 4810-AM-P



                                                                  Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations                                                    1525

                                              Pursuant to section 21B of the Securities                 Dated at Washington, DC on December 19,              U.S.C. 2461 note. Each agency was
                                              Exchange Act of 1934 (Exchange Act)                     2017.                                                  required to make the 2016 one-time
                                              (15 U.S.C. 78u–2), civil money penalties                  By order of the Board of Directors.                  catch-up adjustments through an
                                              may be assessed for violations of certain               Valerie J. Best,                                       interim final rule published in the
                                              provisions of the Exchange Act, where                   Assistant Executive Secretary.                         Federal Register. On June 14, 2016, the
                                              such penalties are in the public interest.              [FR Doc. 2018–00403 Filed 1–11–18; 8:45 am]            Bureau published its interim final rule
                                              Tier One civil money penalties may be                   BILLING CODE 6714–01–P                                 to make the initial catch-up adjustments
                                              assessed pursuant to 15 U.S.C. 78u–                                                                            to civil penalties within the Bureau’s
                                              2(b)(1) in an amount not to exceed                                                                             jurisdiction.5 The June 2016 interim
                                              $9,239 for a natural person or $92,383                                                                         final rule created a new part 1083 and
                                                                                                      BUREAU OF CONSUMER FINANCIAL
                                              for any other person for violations set                                                                        in § 1083.1 established the inflation-
                                                                                                      PROTECTION
                                              forth in 15 U.S.C. 78u–2(a). Tier Two                                                                          adjusted maximum amounts for each
                                              civil money penalties may be assessed                   12 CFR Part 1083                                       civil penalty within the Bureau’s
                                              pursuant to 15 U.S.C. 78u–2(b)(2) in an
                                                                                                                                                             jurisdiction.6 The Inflation Adjustment
                                              amount not to exceed—for each                           Civil Penalty Inflation Adjustments                    Act also requires subsequent
                                              violation set forth in 15 U.S.C. 78u–
                                                                                                      AGENCY:  Bureau of Consumer Financial                  adjustments to be made annually, not
                                              2(a)—$92,383 for a natural person or
                                              $461,916 for any other person if the act                Protection.                                            later than January 15, and
                                              or omission involved fraud, deceit,                     ACTION: Final rule.                                    notwithstanding section 553 of the
                                              manipulation, or deliberate or reckless                                                                        Administrative Procedure Act (APA).7
                                                                                                      SUMMARY:   The Bureau of Consumer                         Specifically, Federal agencies are
                                              disregard of a regulatory requirement.
                                                                                                      Financial Protection (Bureau) is                       directed to adjust annually each civil
                                              Tier Three civil money penalties may be
                                              assessed pursuant to 15 U.S.C. 78u–                     adjusting for inflation the maximum
                                                                                                                                                             penalty provided by law within the
                                              2(b)(3) for each violation set forth in 15              amount of each civil penalty within the
                                                                                                                                                             jurisdiction of the agency by the ‘‘cost-
                                              U.S.C. 78u–2(a), in an amount not to                    Bureau’s jurisdiction. These
                                                                                                                                                             of-living adjustment.’’ 8 For annual
                                              exceed $184,767 for a natural person or                 adjustments are required by the Federal
                                                                                                                                                             adjustments after the initial catch up
                                              $923,831 for any other person, if the act               Civil Penalties Inflation Adjustment Act
                                                                                                                                                             adjustments, the ‘‘cost-of-living
                                              or omission involved fraud, deceit,                     of 1990, as amended by the Debt
                                                                                                      Collection Improvement Act of 1996                     adjustment’’ is defined as the percentage
                                              manipulation, or deliberate or reckless                                                                        (if any) by which the Consumer Price
                                              disregard of a regulatory requirement;                  and further amended by the Federal
                                                                                                      Civil Penalties Inflation Adjustment Act               Index for All Urban Consumers (CPI–U)
                                              and such act or omission directly or                                                                           for the month of October preceding the
                                              indirectly resulted in substantial losses,              Improvements Act of 2015 (Inflation
                                                                                                      Adjustment Act). The inflation                         date of the adjustment, exceeds the CPI–
                                              or created a significant risk of                                                                               U for October of the prior year.9 The
                                              substantial losses to other persons or                  adjustments mandated by the Inflation
                                                                                                      Adjustment Act serve to maintain the                   Director of the Office of Management
                                              resulted in substantial pecuniary gain to                                                                      and Budget (OMB) is required to issue
                                              the person who committed the act or                     deterrent effect of civil penalties and to
                                                                                                      promote compliance with the law.                       guidance (OMB Guidance) every year by
                                              omission.                                                                                                      December 15 to agencies on
                                                (16) Civil money penalties assessed                   DATES: This final rule is effective
                                                                                                      January 15, 2018.                                      implementing the annual civil penalty
                                              pursuant to 15 U.S.C. 1639e(k) for
                                              appraisal independence violations.                                                                             inflation adjustments.10 Pursuant to the
                                                                                                      FOR FURTHER INFORMATION CONTACT:
                                              Pursuant to section 1472(a) of the Dodd-                                                                       Inflation Adjustment Act and OMB
                                                                                                      Monique Chenault, Paralegal Specialist,
                                              Frank Wall Street Reform and Consumer                                                                          Guidance, agencies must apply the
                                                                                                      Office of Regulations, Consumer
                                              Protection Act (Appraisal Independence                  Financial Protection Bureau, 1700                      multiplier reflecting the ‘‘cost-of-living
                                              Rule) (15 U.S.C. 1639e(k)), civil money                 G Street NW, Washington, DC 20552, at                  adjustment’’ to the current penalty
                                              penalties may be assessed for an initial                (202) 435–7700.                                        amount and then round that amount to
                                              violation of the Appraisal Independence                                                                        the nearest dollar to determine the
                                                                                                      SUPPLEMENTARY INFORMATION:
                                              Rule in an amount not to exceed                                                                                annual adjustments.11
                                              $11,279 for each day during which the                   I. Background                                             For the 2018 annual adjustment, the
                                              violation continues and, for subsequent                    The Federal Civil Penalties Inflation               multiplier reflecting the ‘‘cost-of-living
                                              violations, $22,556 for each day during                 Adjustment Act of 1990,1 as amended
                                              which the violation continues.                          by the Debt Collection Improvement Act                 reporting requirements, and redesignating section 7
                                                (17) Civil money penalties assessed                   of 1996 2 and further amended by the                   as section 6, but did not alter the civil penalty
                                              for false claims and statements                                                                                adjustment requirements.
                                                                                                      Federal Civil Penalties Inflation                        5 81 FR 38569 (June 14, 2016). Although the
                                              pursuant to 31 U.S.C. 3802. Pursuant to                 Adjustment Act Improvements Act of                     Bureau was not obligated to solicit comments for
                                              the Program Fraud Civil Remedies Act                    2015 (Inflation Adjustment Act),3                      the interim final rule, the Bureau invited public
                                              (31 U.S.C. 3802), civil money penalties                 directs Federal agencies to adjust for                 comment and received none.
                                              of not more than $11,181 per claim or                   inflation the civil penalty amounts                      6 See 12 CFR 1083.1.

                                              statement may be assessed for violations                within their jurisdiction not later than
                                                                                                                                                               7 Inflation Adjustment Act section 4, codified at

                                              involving false claims and statements.                                                                         28 U.S.C. 2461 note.
                                                                                                      July 1, 2016, and then not later than                    8 Inflation Adjustment Act sections 4 and 5,
                                                (18) Civil money penalties assessed                   January 15 every year thereafter.4 28                  codified at 28 U.S.C. 2461 note.
                                              for violations of 42 U.S.C. 4012a(f).                                                                            9 Inflation Adjustment Act sections 3 and 5,
                                              Pursuant to the Flood Disaster                            1 Public Law 101–410, 104 Stat. 890.                 codified at 28 U.S.C. 2461 note.
sradovich on DSK3GMQ082PROD with RULES




                                              Protection Act (FDPA) (42 U.S.C.                          2 Public Law 104–134, section 31001(s)(1), 110         10 Inflation Adjustment Act section 7, codified at

                                              4012a(f)), civil money penalties may be                 Stat. 1321, 1321–373.                                  28 U.S.C. 2461 note.
                                              assessed against any regulated lending                    3 Public Law 114–74, section 701, 129 Stat. 584,       11 Inflation Adjustment Act section 5, codified at

                                              institution that engages in a pattern or                599.                                                   28 U.S.C. 2461 note; Memorandum to the Exec.
                                                                                                        4 Section 1301(a) of the Federal Reports             Dep’ts & Agencies from Mick Mulvaney, Director,
                                              practice of violations of the FDPA in an                Elimination Act of 1998, Public Law 105–362, 112       Office of Mgmt. & Budget (Dec. 15, 2017), available
                                              amount not to exceed $2,133 per                         Stat. 3293, also amended the Inflation Adjustment      at https://www.whitehouse.gov/wp-content/
                                              violation.                                              Act by striking section 6, which contained annual      uploads/2017/11/M-18-03.pdf.



                                         VerDate Sep<11>2014   17:21 Jan 11, 2018   Jkt 244001   PO 00000   Frm 00011   Fmt 4700   Sfmt 4700   E:\FR\FM\12JAR1.SGM   12JAR1


                                              1526                       Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations

                                              adjustment’’ is 1.02041.12 Pursuant to                                   its civil penalty amounts by the ‘‘cost-                                         The new penalty amounts that apply
                                              the Inflation Adjustment Act and OMB                                     of-living adjustment’’ multiplier and                                          to civil penalties assessed after January
                                              Guidance, the Bureau multiplied each of                                  rounded to the nearest dollar.13                                               15, 2018 are as follows:
                                                                                                                                                                                                                 Penalty            OMB
                                                                                                                                                                                                                amounts        ‘‘Cost-of-Living   New penalty
                                                                                            Law                                                                 Penalty description                            established       Adjustment’’       amount
                                                                                                                                                                                                               under 2017         multiplier
                                                                                                                                                                                                                final rule

                                              Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A) ......................                    Tier 1 penalty ....................................                $5,526          1.02041           $5,639
                                              Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B) ......................                    Tier 2 penalty ....................................                27,631          1.02041           28,195
                                              Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C) ......................                    Tier 3 penalty ....................................             1,105,241          1.02041        1,127,799
                                              Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) ...............                     Per violation ......................................                1,925          1.02041            1,964
                                              Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) ...............                     Annual cap ........................................             1,924,589          1.02041        1,963,870
                                              Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) ....................                     Per failure ..........................................                 90          1.02041               92
                                              Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) ....................                     Annual cap ........................................               181,071          1.02041          184,767
                                              Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A) ...............                       Per failure, where intentional ............                           181          1.02041              185
                                              SAFE Act, 12 U.S.C. 5113(d)(2) ...................................................................   Per violation ......................................               27,904          1.02041           28,474
                                              Truth in Lending Act, 15 U.S.C. 1639e(k)(1) ................................................         First violation .....................................              11,053          1.02041           11,279
                                              Truth in Lending Act, 15 U.S.C. 1639e(k)(2) ................................................         Subsequent violations .......................                      22,105          1.02041           22,556



                                              II. Legal Authority                                                      for inflation.19 For these reasons, the                                        B. Regulatory Flexibility Act
                                                                                                                       Bureau has determined that publishing                                            Because no notice of proposed
                                                The Bureau issues this final rule
                                              under the Federal Civil Penalties                                        a notice of proposed rulemaking and                                            rulemaking is required, the Regulatory
                                              Inflation Adjustment Act of 1990,14 as                                   providing opportunity for public                                               Flexibility Act does not require an
                                              amended by the Debt Collection                                           comment are unnecessary. Therefore,                                            initial or final regulatory flexibility
                                              Improvement Act of 1996 15 and further                                   the amendment is adopted in final form.                                        analysis.23
                                              amended by the Federal Civil Penalties                                      Section 553(d) of the APA generally                                         C. Paperwork Reduction Act
                                              Inflation Adjustment Act Improvements                                    requires publication of a final rule not
                                              Act of 2015,16 which requires the                                        less than 30 days before its effective                                           In accordance with the Paperwork
                                              Bureau to adjust for inflation the civil                                 date, except (1) a substantive rule which                                      Reduction Act of 1995,24 the Bureau
                                              penalties within its jurisdiction                                        grants or recognizes an exemption or                                           reviewed this final rule. No collections
                                              according to a statutorily prescribed                                    relieves a restriction; (2) interpretive                                       of information pursuant to the
                                              formula.                                                                 rules and statements of policy; or (3) as                                      Paperwork Reduction Act are contained
                                                                                                                                                                                                      in the final rule.
                                              III. Procedural Requirements                                             otherwise provided by the agency for
                                                                                                                       good cause found and published with                                            D. Congressional Review Act
                                              A. Administrative Procedure Act                                          the rule.20 At a minimum, the Bureau                                              Pursuant to the Congressional Review
                                                Under the APA, notice and                                              believes the annual adjustments to the                                         Act (5 U.S.C. 801 et seq.), CFPB will
                                              opportunity for public comment are not                                   civil penalty amounts in § 1083.1 fall                                         submit a report containing this rule and
                                              required if the Bureau finds that notice                                 under the third exception to section                                           other required information to the U.S.
                                              and public comment are impracticable,                                    553(d). The Bureau finds that there is                                         Senate, the U.S. House of
                                              unnecessary, or contrary to the public                                   good cause to make the amendments                                              Representatives, and the Comptroller
                                              interest.17 Pursuant to this final rule,                                 effective on January 15, 2018. The                                             General of the United States prior to the
                                              § 1083.1 is amended to update the civil                                  amendments to § 1083.1 in this final                                           rule taking effect. The Office of
                                              penalty amounts. The 2018 adjustments                                    rule are technical and non-                                                    Information and Regulatory Affairs
                                              to the civil penalty amounts are                                         discretionary, and they merely apply the                                       (OIRA) has designated this rule as not
                                              technical and non-discretionary, and                                     statutory method for adjusting civil                                           a ‘‘major rule’’ as defined by 5 U.S.C.
                                              they merely apply the statutory method                                   penalty amounts and follow the                                                 804(2).
                                              for adjusting civil penalty amounts.                                     statutory directive to make annual
                                              These adjustments are required by the                                                                                                                   List of Subjects in 12 CFR Part 1083
                                                                                                                       adjustments by January 15 of each year.
                                              Inflation Adjustment Act. Moreover, the                                  Moreover, the Inflation Adjustment Act                                           Administrative practice and
                                              Inflation Adjustment Act directs                                                                                                                        procedure, Consumer protection,
                                                                                                                       directs agencies to adjust the civil
                                              agencies to adjust the civil penalties                                                                                                                  Penalties.
                                                                                                                       penalties annually notwithstanding
                                              annually notwithstanding section 553 of
                                                                                                                       section 553 of the APA,21 and OMB                                              Authority and Issuance
                                              the APA,18 and OMB Guidance
                                              reaffirms that agencies need not                                         Guidance reaffirms that agencies need                                            For the reasons set forth above, the
                                              complete a notice-and-comment process                                    not provide a delay in effective date for                                      Bureau amends 12 CFR part 1083 as set
                                              before making the annual adjustments                                     the annual adjustments for inflation.22                                        forth below:
                                                 12 Memorandum to the Exec. Dep’ts & Agencies                             15 Public Law 104–134, section 31001(s)(1), 110                                   20 5
                                                                                                                                                                                                              U.S.C. 553(d).
                                              from Mick Mulvaney, Director, Office of Mgmt. &                          Stat. 1321, 1321–373.                                                                21 Inflation
                                                                                                                                                                                                                     Adjustment Act section 4, codified at
                                                                                                                          16 Public Law 114–74, section 701, 129 Stat. 584,
                                              Budget (Dec. 15, 2017), available at https://                                                                                                           28 U.S.C. 2461 note.
                                                                                                                       599.
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                                              www.whitehouse.gov/wp-content/uploads/2017/11/                                                                                                             22 Memorandum to the Exec. Dep’ts & Agencies
                                                                                                                          17 5 U.S.C. 553(b)(B).
                                              M-18-03.pdf.                                                                                                                                            from Mick Mulvaney, Director, Office of Mgmt. &
                                                                                                                          18 Inflation Adjustment Act section 4, codified at
                                                 13 In rounding to the nearest dollar, the Bureau
                                                                                                                                                                                                      Budget (Dec. 15, 2017), available at https://
                                                                                                                       28 U.S.C. 2461 note.
                                              has rounded down where the digit immediately                                19 Memorandum to the Exec. Dep’ts & Agencies                                www.whitehouse.gov/wp-content/uploads/2017/11/
                                              following the decimal point is less than 5 and has                                                                                                      M-18-03.pdf.
                                                                                                                       from Mick Mulvaney, Director, Office of Mgmt. &
                                              rounded up where the digit immediately following                         Budget (Dec. 15, 2017), available at https://                                     23 5 U.S.C. 603(a), 604(a).
                                              the decimal point is 5 or greater.                                       www.whitehouse.gov/wp-content/uploads/2017/11/                                    24 44 U.S.C. 3506; 5 CFR part 1320.
                                                 14 Public Law 101–410, 104 Stat. 890.                                 M-18-03.pdf.



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                                                                       Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations                                                                                        1527

                                              PART 1083—CIVIL PENALTY                                               ■ 2. Section 1083.1 is revised to read as                                  accordance with the Federal Civil
                                              ADJUSTMENTS                                                           follows:                                                                   Penalties Inflation Adjustment Act of
                                                                                                                                                                                               1990, as amended by the Debt
                                              ■ 1. The authority citation for part 1083                             § 1083.1 Adjustments of civil penalty
                                                                                                                    amounts.                                                                   Collection Improvement Act of 1996
                                              continues to read as follows:                                                                                                                    and further amended by the Federal
                                                Authority: 12 U.S.C. 2609(d); 12 U.S.C.                               (a) The maximum amount of each                                           Civil Penalties Inflation Adjustment Act
                                              5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C.                              civil penalty within the jurisdiction of
                                                                                                                                                                                               Improvements Act of 2015 (28 U.S.C.
                                              1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461                          the Consumer Financial Protection
                                                                                                                                                                                               2461 note), as follows:
                                              note.                                                                 Bureau to impose is adjusted in

                                                                                                                                                                                                                                               Adjusted
                                                                                                                                                                                                                                               maximum
                                                                             U.S. Code citation                                                                           Civil penalty description                                              civil
                                                                                                                                                                                                                                                penalty
                                                                                                                                                                                                                                                amount

                                              12   U.S.C.   5565(c)(2)(A) ..............................................................     Tier 1 penalty .............................................................................           $5,639
                                              12   U.S.C.   5565(c)(2)(B) ..............................................................     Tier 2 penalty .............................................................................           28,195
                                              12   U.S.C.   5565(c)(2)(C) ..............................................................     Tier 3 penalty .............................................................................        1,127,799
                                              15   U.S.C.   1717a(a)(2) ................................................................     Per violation ...............................................................................           1,964
                                              15   U.S.C.   1717a(a)(2) ................................................................     Annual cap .................................................................................        1,963,870
                                              12   U.S.C.   2609(d)(1) ..................................................................    Per failure ...................................................................................            92
                                              12   U.S.C.   2609(d)(1) ..................................................................    Annual cap .................................................................................          184,767
                                              12   U.S.C.   2609(d)(2)(A) ..............................................................     Per failure, where intentional .....................................................                      185
                                              12   U.S.C.   5113(d)(2) ..................................................................    Per violation ...............................................................................          28,474
                                              15   U.S.C.   1639e(k)(1) .................................................................    First violation ..............................................................................         11,279
                                              15   U.S.C.   1639e(k)(2) .................................................................    Subsequent violations ................................................................                 22,556



                                                (b) The adjustments in paragraph (a)                                in the vicinity of the gaseous oxygen                                      the Docket Operations office (telephone:
                                              of this section shall apply to civil                                  system (GOS) for passengers. We are                                        800–647–5527) is in the ADDRESSES
                                              penalties assessed after January 15,                                  issuing this AD to address the unsafe                                      section. Comments will be available in
                                              2018, regardless of when the violation                                condition on these products.                                               the AD docket shortly after receipt.
                                              for which the penalty is assessed                                     DATES: This AD becomes effective                                           FOR FURTHER INFORMATION CONTACT:
                                              occurred.                                                             January 29, 2018.                                                          Sanjay Ralhan, Aerospace Engineer,
                                                Dated: January 4, 2018.                                                We must receive comments on this                                        International Section, Transport
                                              Mick Mulvaney,                                                        AD by February 26, 2018.                                                   Standards Branch, FAA, 1601 Lind
                                              Acting Director, Bureau of Consumer                                   ADDRESSES: You may send comments,                                          Avenue SW, Renton, WA 98057–3356;
                                              Financial Protection.                                                 using the procedures found in 14 CFR                                       telephone: 425–227–1405; fax: 425–
                                              [FR Doc. 2018–00399 Filed 1–11–18; 8:45 am]                           11.43 and 11.45, by any of the following                                   227–1149.
                                              BILLING CODE 4810–AM–P                                                methods:                                                                   SUPPLEMENTARY INFORMATION:
                                                                                                                       • Federal eRulemaking Portal: Go to                                     Discussion
                                                                                                                    http://www.regulations.gov. Follow the
                                                                                                                    instructions for submitting comments.                                        The European Aviation Safety Agency
                                              DEPARTMENT OF TRANSPORTATION                                                                                                                     (EASA), which is the Technical Agent
                                                                                                                       • Fax: 202–493–2251.
                                                                                                                       • Mail: U.S. Department of                                              for the Member States of the European
                                              Federal Aviation Administration
                                                                                                                    Transportation, Docket Operations, M–                                      Union, has issued EASA AD 2014–0045,
                                                                                                                    30, West Building Ground Floor, Room                                       dated February 25, 2014; corrected
                                              14 CFR Part 39
                                                                                                                    W12–140, 1200 New Jersey Avenue SE,                                        March 4, 2014 (referred to after this as
                                              [Docket No. FAA–2017–1244; Product                                                                                                               the Mandatory Continuing
                                              Identifier 2013–NM–145–AD; Amendment
                                                                                                                    Washington, DC 20590.
                                                                                                                       • Hand Delivery: U.S. Department of                                     Airworthiness Information, or ‘‘the
                                              39–19152; AD 2018–01–11]                                                                                                                         MCAI’’), to correct an unsafe condition
                                                                                                                    Transportation, Docket Operations, M–
                                              RIN 2120–AA64                                                         30, West Building Ground Floor, Room                                       for certain Airbus Model A319–115 and
                                                                                                                    W12–140, 1200 New Jersey Avenue SE,                                        A319–133 airplanes. The MCAI states:
                                              Airworthiness Directives; Airbus                                      Washington, DC, between 9 a.m. and 5                                         Following an ECAM [electronic centralized
                                              Airplanes                                                             p.m., Monday through Friday, except                                        aircraft monitor] warning ‘‘CARGO SMOKE’’
                                                                                                                    Federal holidays.                                                          during flight, the flight crew elected to divert
                                              AGENCY:  Federal Aviation
                                                                                                                                                                                               and the aeroplane made an uneventful
                                              Administration (FAA), DOT.                                            Examining the AD Docket                                                    landing. The post-flight inspection evidenced
                                              ACTION: Final rule; request for                                                                                                                  a heavy fire in the vicinity of the Gaseous
                                              comments.                                                               You may examine the AD docket on                                         Oxygen System (GOS) for passengers, located
                                                                                                                    the internet at http://                                                    close to the cargo area. The origin of the fire
                                              SUMMARY:   We are adopting a new                                      www.regulations.gov by searching for                                       has not been clearly identified. After more
                                              airworthiness directive (AD) for certain                              and locating Docket No. FAA–2017–                                          investigation, Airbus determined that the
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                                              Airbus Model A319–115 and A319–133                                    1244; or in person at the Docket                                           current optional passenger GOS design,
                                              airplanes. This AD requires contacting                                Operations office between 9 a.m. and 5                                     specific to A319 aeroplanes, is not robust
                                                                                                                                                                                               enough to prevent further events of this kind.
                                              the FAA to obtain instructions for                                    p.m., Monday through Friday, except                                          This condition, if not detected and
                                              addressing the unsafe condition on                                    Federal holidays. The AD docket                                            corrected, could lead to an uncontrolled fire,
                                              these products, and doing the actions                                 contains this AD, the regulatory                                           possibly resulting in loss of the aeroplane.
                                              specified in those instructions. This AD                              evaluation, any comments received, and                                       To address this potential unsafe condition,
                                              was prompted by a fire during a flight,                               other information. The street address for                                  Airbus developed mod 153555 to improve



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Document Created: 2018-10-26 09:53:03
Document Modified: 2018-10-26 09:53:03
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective January 15, 2018.
ContactMonique Chenault, Paralegal Specialist, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 20552, at (202) 435-7700.
FR Citation83 FR 1525 
CFR AssociatedAdministrative Practice and Procedure; Consumer Protection and Penalties

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