Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 515 

1 15 U.S.C. 1681g. 

2 15 U.S.C. 1681j(a). 

3 15 U.S.C. 1681j(b)–(d). The maximum allowable 

charge announced by the Bureau does not apply to 

requests made under Section 612(a)–(d) of the 

FCRA. The charge does apply when a consumer 

who orders a file disclosure has already received a 

free annual file disclosure and does not otherwise 

qualify for an additional free file disclosure. 

4 15 U.S.C. 1681j(f)(1)(A). 

B on December 31 of the preceding calendar 

year exceeded the threshold described in 

§ 1003.2(g)(1)(i). Comment 2(g)–4 discusses a 

financial institution’s responsibilities during 

the calendar year of a merger. 

4. Merger or acquisition—coverage for 

calendar year of merger or acquisition. The 

scenarios described below illustrate a 

financial institution’s responsibilities for the 

calendar year of a merger or acquisition. For 

purposes of these illustrations, a ‘‘covered 

institution’’ means a financial institution, as 

defined in § 1003.2(g), that is not exempt 

from reporting under § 1003.3(a), and ‘‘an 

institution that is not covered’’ means either 

an institution that is not a financial 

institution, as defined in § 1003.2(g), or an 

institution that is exempt from reporting 

under § 1003.3(a). 

i. Two institutions that are not covered 

merge. The surviving or newly formed 

institution meets all of the requirements 

necessary to be a covered institution. No data 

collection is required for the calendar year of 

the merger (even though the merger creates 

an institution that meets all of the 

requirements necessary to be a covered 

institution). When a branch office of an 

institution that is not covered is acquired by 

another institution that is not covered, and 

the acquisition results in a covered 

institution, no data collection is required for 

the calendar year of the acquisition. 

ii. A covered institution and an institution 

that is not covered merge. The covered 

institution is the surviving institution, or a 

new covered institution is formed. For the 

calendar year of the merger, data collection 

is required for covered loans and 

applications handled in the offices of the 

merged institution that was previously 

covered and is optional for covered loans and 

applications handled in offices of the merged 

institution that was previously not covered. 

When a covered institution acquires a branch 

office of an institution that is not covered, 

data collection is optional for covered loans 

and applications handled by the acquired 

branch office for the calendar year of the 

acquisition. 

iii. A covered institution and an institution 

that is not covered merge. The institution 

that is not covered is the surviving 

institution, or a new institution that is not 

covered is formed. For the calendar year of 

the merger, data collection is required for 

covered loans and applications handled in 

offices of the previously covered institution 

that took place prior to the merger. After the 

merger date, data collection is optional for 

covered loans and applications handled in 

the offices of the institution that was 

previously covered. When an institution 

remains not covered after acquiring a branch 

office of a covered institution, data collection 

is required for transactions of the acquired 

branch office that take place prior to the 

acquisition. Data collection by the acquired 

branch office is optional for transactions 

taking place in the remainder of the calendar 

year after the acquisition. 

iv. Two covered institutions merge. The 

surviving or newly formed institution is a 

covered institution. Data collection is 

required for the entire calendar year of the 

merger. The surviving or newly formed 

institution files either a consolidated 

submission or separate submissions for that 

calendar year. When a covered institution 

acquires a branch office of a covered 

institution, data collection is required for the 

entire calendar year of the merger. Data for 

the acquired branch office may be submitted 

by either institution. 

5. Originations. Whether an institution is a 

financial institution depends in part on 

whether the institution originated at least 25 

closed-end mortgage loans in each of the two 

preceding calendar years or at least 500 openend lines of credit in each of the two 

preceding calendar years. Comments 4(a)–2 

through –4 discuss whether activities with 

respect to a particular closed-end mortgage 

loan or open-end line of credit constitute an 

origination for purposes of § 1003.2(g). 

6. Branches of foreign banks—treated as 

banks. A Federal branch or a State-licensed 

or insured branch of a foreign bank that 

meets the definition of a ‘‘bank’’ under 

section 3(a)(1) of the Federal Deposit 

Insurance Act (12 U.S.C. 1813(a)) is a bank 

for the purposes of § 1003.2(g). 

7. Branches and offices of foreign banks 

and other entities—treated as nondepository 

financial institutions. A Federal agency, 

State-licensed agency, State-licensed 

uninsured branch of a foreign bank, 

commercial lending company owned or 

controlled by a foreign bank, or entity 

operating under section 25 or 25A of the 

Federal Reserve Act, 12 U.S.C. 601 and 611 

(Edge Act and agreement corporations) may 

not meet the definition of ‘‘bank’’ under the 

Federal Deposit Insurance Act and may 

thereby fail to satisfy the definition of a 

depository financial institution under 

§ 1003.2(g)(1). An entity is nonetheless a 

financial institution if it meets the definition 

of nondepository financial institution under 

§ 1003.2(g)(2). 

* * * * * 

Dated: December 20, 2018. 

Kathleen Kraninger, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2018–28373 Filed 1–29–19; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1022 

RIN 3170–AA94 

Fair Credit Reporting Act Disclosures 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

amending Regulation V, which 

implements the Fair Credit Reporting 

Act (FCRA), to add a section 

establishing a maximum allowable 

charge for disclosures by a consumer 

reporting agency to a consumer 

pursuant to FCRA section 609. The 

Bureau is also amending Regulation V to 

add an appendix setting forth the 

statutory requirements for determining 

the maximum allowable charge; 

announcing the maximum charge for 

2019; and preserving a list of historical 

maximum allowable charges. 

Historically, the Bureau has published 

these FCRA annual adjustments as a 

notice. The Bureau is now codifying 

those notices and adding a provision to 

Regulation V to track the FCRA’s 

provisions concerning the annual 

maximum allowable charge. 

DATES: Effective date: This rule is 

effective January 31, 2019. 

Applicability date: This rule is 

applicable on January 1, 2019, 

consistent with relevant statutory 

provisions. 

FOR FURTHER INFORMATION CONTACT: Seth 

Caffrey, Senior Counsel; or Monique 

Chenault, Paralegal Specialist at (202) 

435–7700 or https://

reginquiries.consumerfinance.gov. If 

you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Under section 609 of the FCRA, a 

consumer reporting agency must, upon 

a consumer’s request, disclose to the 

consumer information in the consumer’s 

file.1 Section 612(a) of the FCRA gives 

consumers the right to a free file 

disclosure upon request once every 12 

months from the nationwide consumer 

reporting agencies and nationwide 

specialty consumer reporting agencies.2

Section 612 of the FCRA also gives 

consumers the right to a free file 

disclosure under certain other, specified 

circumstances.3 Where the consumer is 

not entitled to a free file disclosure, 

section 612(f)(1)(A) of the FCRA 

provides that a consumer reporting 

agency may impose a reasonable charge 

on a consumer for making a file 

disclosure. Section 612(f)(1)(A) of the 

FCRA provides that the charge for such 

a disclosure shall not exceed $8.00 and 

shall be indicated to the consumer 

before making the file disclosure.4

Section 612(f)(2) of the FCRA also 

states that the $8.00 maximum amount 

shall increase on January 1 of each year, 


khammond on DSKBBV9HB2PROD with RULES
516 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 

5 15 U.S.C. 1681j(f)(2). 

6Public Law 111–203, section 1088, 124 Stat. 

2086 (2010). 

7 77 FR 20011 (Apr. 3, 2012); 77 FR 74831 (Dec. 

18, 2012), 78 FR 79410 (Dec. 30, 2013); 79 FR 74068 

(Dec. 15, 2014); 80 FR 72711 (Nov. 20, 2015); 81 

FR 81745 (Nov. 18, 2016); 82 FR 53481 (Nov. 16, 

2017). 

8Public Law 111–203, 124 Stat. 2035 (2010). 

9Section 1002(12)(F) of the Dodd-Frank Act 

designates most of the FCRA as an ‘‘enumerated 

consumer law.’’ Public Law 111–203, 124 Stat. 1957 

(2010). 

10Public Law 111–203, 124 Stat. 2086 (2010). 

11Public Law 11–203, section 1088(a)10)(E), 124 

Stat. 2090 (2010) (codified at 15 U.S.C. 1681s(e). 

12 15 U.S.C. 1681j(f)(2). 13 5 U.S.C. 603(a), 604(a). 

based proportionally on changes in the 

Consumer Price Index, with fractional 

changes rounded to the nearest fifty 

cents.5 Such increases are based on the 

Consumer Price Index for All Urban 

Consumers (CPI–U), which is the most 

general Consumer Price Index and 

covers all urban consumers and all 

items. 

Prior to 2011, the Federal Trade 

Commission (FTC) set the maximum 

allowable charge under section 612(f) of 

the FCRA (the ‘‘annual adjustment’’). 

The FTC set these amounts by issuing 

a notice rather than by issuing a rule. In 

2011, the responsibility for setting the 

maximum allowable charge transferred 

from the FTC to the Bureau pursuant to 

the Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank 

Act).6 Consistent with the FTC’s 

historical practice, the Bureau has 

continued to publish the FCRA annual 

adjustment as a notice.7 To underscore 

for stakeholders that the FCRA annual 

adjustment amount is legally binding, 

the Bureau is now issuing a final rule to 

add a provision to Regulation V (Fair 

Credit Reporting) to codify a maximum 

allowable charge for disclosures by a 

consumer reporting agency to a 

consumer pursuant to FCRA section 609 

and to announce the annual maximum 

allowable charge. 

II. 2019 Annual Adjustment 

For 2019, the ceiling on allowable 

charges under section 612(f) of the 

FCRA will be $12.50. The Bureau is 

using the $8.00 amount set forth in 

section 612(f)(1)(A)(i) of the FCRA as 

the baseline for its calculation of the 

increase in the ceiling on reasonable 

charges for certain disclosures made 

under section 609 of the FCRA. Since 

the effective date of section 612(a) was 

September 30, 1997, the Bureau 

calculated the proportional increase in 

the CPI–U from September 1997 to 

September 2018. The Bureau then 

determined what modification, if any, 

from the original base of $8.00 should 

be made effective for 2019, given the 

requirement that fractional changes be 

rounded to the nearest fifty cents. 

Between September 1997 and 

September 2018, the CPI–U increased by 

56.59 percent from an index value of 

161.2 in September 1997 to a value of 

252.439 in September 2018. An increase 

of 56.59 percent in the $8.00 base figure 

would lead to a figure of $12.53. 

However, because the statute directs 

that the resulting figure be rounded to 

the nearest $0.50, the maximum 

allowable charge is $12.50. The Bureau 

therefore determines that the maximum 

allowable charge for the year 2019 will 

be $12.50. 

III. Legal Authority and Effective Date 

The Bureau issues this rule pursuant 

to its authority under the FCRA and the 

Dodd-Frank Act. Effective July 21, 2011, 

section 1061 of the Dodd-Frank Act 8

transferred to the Bureau the rulemaking 

and certain other authorities of the FTC 

and the prudential regulators relating to 

the enumerated consumer laws, 

including most rulemaking authority 

under the FCRA.9 Likewise, section 

1088 of the Dodd-Frank Act made 

conforming amendments to the FCRA, 

transferring rulemaking authority under 

much of the FCRA to the Bureau.10 As 

amended by the Dodd-Frank Act, the 

FCRA generally authorizes the Bureau 

to issue regulations ‘‘as may be 

necessary or appropriate to administer 

and carry out the purposes and 

objectives of [the FCRA], and to prevent 

evasions thereof or to facilitate 

compliance therewith.’’ 11 Additionally, 

FCRA section 612(f)(2) specifically 

directs the Bureau to annually modify 

the maximum allowable charge for 

consumer file disclosures based on 

changes to the Consumer Price Index.12

This final rule is effective on January 

31, 2019. 

IV. Administrative Procedure Act 

(APA) 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if the 

Bureau for good cause finds that notice 

and public comment are impracticable, 

unnecessary, or contrary to the public 

interest. 5 U.S.C. 553(b)(B). The annual 

adjustment to the maximum allowable 

charge under section 612(f) of the FCRA 

is technical, routine, and 

nondiscretionary: Each year, the Bureau 

takes the $8.00 figure set forth in the 

statute and applies the adjustment 

formula also set forth in the statute to 

arrive at the maximum allowable 

charge. The annual adjustment to the 

maximum allowable charge merely 

codifies the result of the calculation 

prescribed by Congress. The 

amendments to Regulation V are also 

technical. The new regulatory text and 

appendix track the FCRA. For these 

reasons, the Bureau has determined that 

publishing a notice of proposed 

rulemaking and providing opportunity 

for public comment are unnecessary. 

Therefore, the amendments are adopted 

in final form. 

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. 5 U.S.C. 553(d). 

At a minimum, the Bureau believes the 

amendments fall under the third 

exception to section 553(d). As 

mentioned above, the annual 

adjustment and the amendments to 

Regulation V are technical. The 

amendments codify the language of the 

FCRA, and the annual adjustment 

merely applies the statutory method for 

adjusting the maximum allowable 

charge and follows the statutory 

directive to make the annual adjustment 

each year. 

V. Regulatory Flexibility Act (RFA) 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where 

general notice of proposed rulemaking 

is not required.13 As noted previously, 

the Bureau has determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this rule. 

Accordingly the RFA’s requirements 

relating to an initial and final regulatory 

flexibility analysis do not apply. 

VI. Paperwork Reduction Act 

Under the Paperwork Reduction Act 

of 1995 (PRA) (44 U.S.C. 3501 et seq.), 

Federal agencies are generally required 

to seek the Office of Management and 

Budget (OMB) approval for information 

collection requirements prior to 

implementation. According to the PRA, 

the Bureau may not conduct or sponsor, 

and, notwithstanding any other 

provision of law, a person is not 

required to respond to an information 

collection unless the information 

collection displays currently a valid 

control number assigned by OMB. The 

information requested by Regulation V 

has been previously approved by OMB 

and assigned OMB control number 

3170–0002. It expires on 08/31/2020. 

The Bureau has determined that the 

revisions to this Policy do not introduce 


khammond on DSKBBV9HB2PROD with RULES
Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 517 

1Public Law 101–410, 104 Stat. 890. 

2Public Law 104–134, section 31001(s)(1), 110 

Stat. 1321, 1321–373. 

3Public Law 114–74, section 701, 129 Stat. 584, 

599. 

4 28 U.S.C. 2461 note. 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. 

6See 12 CFR 1083.1. 

7 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

any new or substantively or materially 

revised collections of information 

beyond what has been previously 

approved by OMB. 

VII. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Bureau 

will submit a report containing this rule 

and other required information to the 

United States Senate, the United States 

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 1022 

Banks, Banking, Consumer protection, 

Credit unions, Fair Credit Reporting 

Act, Holding companies, National 

banks, Privacy, Reporting and 

recordkeeping requirements, Savings 

associations, State member banks. 

Authority and Issuance 

For the reasons set forth above, the 

Bureau amends Regulation V, 12 CFR 

part 1022, as set forth below: 

PART 1022—FAIR CREDIT 

REPORTING (REGULATION V) 

■ 1. The authority citation for part 1022 

continues to read as follows: 

Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 

1681a, 1681b, 1681c, 1681c–1, 1681e, 1681g, 

1681i, 1681j, 1681m, 1681s, 1681s–2, 1681s– 

3, and 1681t; Sec. 214, Public Law 108–159, 

117 Stat. 1952. 

Subpart O—Miscellaneous Duties of 

Consumer Reporting Agencies 

■ 2. Section 1022.141 is added to read 

as follows: 

§ 1022.141 Reasonable charges for certain 

disclosures. 

Pursuant to section 612(f) of the 

FCRA, 15 U.S.C. 1681j(f), the charge 

imposed by a consumer reporting 

agency for a disclosure to the consumer 

pursuant to section 609 of the FCRA, 15 

U.S.C. 1681g, shall not exceed the 

maximum allowable charge set by the 

Bureau. 

■ 3. Appendix O is added to read as 

follows: 

Appendix O to Part 1022—Reasonable 

Charges for Certain Disclosures 

Section 612(f) of the FCRA, 15 U.S.C. 

1681j(f), directs the Bureau to increase the 

maximum allowable charge a consumer 

reporting agency may impose for making a 

disclosure to the consumer pursuant to 

section 609 of the FCRA, 15 U.S.C. 1681g, on 

January 1 of each year, based proportionally 

on changes in the Consumer Price Index, 

with fractional changes rounded to the 

nearest fifty cents. The Bureau will publish 

notice of the maximum allowable charge 

each year by amending this appendix. For 

calendar year 2019, the maximum allowable 

charge is $12.50. For historical purposes: 

1. For calendar year 2012, the maximum 

allowable disclosure charge was $11.50. 

2. For calendar year 2013, the maximum 

allowable disclosure charge was $11.50. 

3. For calendar year 2014, the maximum 

allowable disclosure charge was $11.50. 

4. For calendar year 2015, the maximum 

allowable disclosure charge was $12.00. 

5. For calendar year 2016, the maximum 

allowable disclosure charge was $12.00. 

6. For calendar year 2017, the maximum 

allowable disclosure charge was $12.00. 

7. For calendar year 2018, the maximum 

allowable disclosure charge was $12.00. 

8. For calendar year 2019, the maximum 

allowable disclosure charge is $12.50. 

Dated: December 21, 2018. 

Kathleen Kraninger, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2018–28372 Filed 1–29–19; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1083 

[Docket No. CFPB–2018–0034] 

RIN 3170–AA62 

Civil Penalty Inflation Adjustments 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

amending its rule that specifies the time 

period for which adjusted civil penalty 

amounts would be applied to conduct 

within its jurisdiction and is also 

adjusting specific civil penalty amounts 

in that rule to account for inflation. On 

June 14, 2016, the Bureau issued an 

interim final rule (IFR) to implement 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). On 

October 12, 2018, the Bureau sought 

notice and comment on a proposed 

amendment to the IFR to specify that 

the adjusted civil penalties only apply 

to assessments whose associated 

violations occurred on, or after, 

November 2, 2015 (the date the 2015 

Inflation Adjustment Act amendments 

were signed into law). This rule 

finalizes the IFR and proposed 

amendment; it also adjusts for inflation 

the maximum amount of each civil 

penalty within the Bureau’s jurisdiction. 

DATES: This rule is effective on January 

31, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Shelley Thompson, Counsel or Monique 

Chenault, Paralegal Specialist, Office of 

Regulations, at (202) 435–7700 or 

https://

reginquiries.consumerfinance.gov. If 

you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

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 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 

(IFR) to make the initial catch-up 

adjustments to civil penalties within the 

Bureau’s jurisdiction.5 The June 2016 

IFR created a new part 1083 and in 

§ 1083.1 established the inflationadjusted maximum amounts for each 

civil penalty within the Bureau’s 

jurisdiction.6 The Bureau received no 

comments in response to the IFR, which 

became effective on July 14, 2016. 

The Inflation Adjustment Act also 

requires subsequent adjustments to be 

made annually and notwithstanding 

section 553 of the Administrative 

Procedure Act (APA).7 The Bureau 

annually adjusted its civil penalty 


khammond on DSKBBV9HB2PROD with RULES