Recently, the CFPB and the OCC announced changes to their maximum civil money penalties published in the Federal Register to adjust for inflation as federal law requires. This year, the OCC’s changes affect penalties for national banks and federal savings associations, with the OCC’s new penalty amounts effective January 10; the CFPB’s new amounts go into effect January 15. Notably, the OCC stated that violations of law, including unsafe or unsound practices or breaches of fiduciary duty under 12 U.S.C. 1818(i)(2), can now result in penalties up to $22,513,215 for Tier 3 violations. The CFPA’s Tier 3 violation penalty increases to $1,443,275 from $1,000,000.
The adjustments reflected the “cost-of-living adjustment” multiplier of 1.02598, as determined by the OMB. The CFPB’s adjustments apply to penalties assessed after January 15, 2025, for violations occurring on or after November 2, 2015.
