🏦Analysis of Consumer Financial Civil Penalty Fund Rule Amendment
Consumer Financial Civil Penalty Fund Rule Amendment
Summary
The Consumer Financial Protection Bureau (Bureau or CFPB) is proposing to amend its 2013 rule implementing the provision of the Consumer Financial Protection Act of 2010 (CFPA or Act) that establishes a Consumer Financial Civil Penalty Fund (Civil Penalty Fund). Under the CFPA, the Civil Penalty Fund may be used for payments to victims of activities subject to civil penalties; to the extent victims cannot be located or payments are not practicable, the Bureau may use funds for consumer education and financial literacy programs. This proposed rule would remove references to allocating funds for consumer education and financial literacy programs.
Agencies
- Consumer Financial Protection Bureau
Business Impact
$$ - Med
The proposed amendment removes references to funding for consumer education and financial literacy from the CFPB Civil Penalty Fund. This can impact business owners' compliance requirements and funding opportunities for consumer programs. The ruling could influence financial service providers in the consumer education space.