Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Rules and Regulations 3767 

1Public Law 101–410, 104 Stat. 890. 

2Public Law 104–134, sec. 31001(s)(1), 110 Stat. 

1321, 1321–373. 

3Public Law 114–74, sec. 701, 129 Stat. 584, 599. 

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

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 84 FR 517 (Jan. 31, 2019). 

8 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. As discussed in guidance 

issued by the Director of the Office of Management 

and Budget (OMB), the APA generally requires 

notice, an opportunity for comment, and a delay in 

effective date for certain rulemakings, but the 

Inflation Adjustment Act provides that these 

procedures are not required for agencies to issue 

regulations implementing the annual adjustment. 

See Memorandum to the Exec. Dep’ts & Agencies 

from Russell T. Vought, Director, Office of Mgmt. 

& Budget at 4 (Dec. 23, 2020), available at https:// 

www.whitehouse.gov/wp-content/uploads/2020/12/ 

M-21-10.pdf. 9 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12, 

2018); 84 FR 517 (Jan. 31, 2019); 85 FR 2012 (Jan. 

14, 2020). 10 Inflation Adjustment Act sections 4 and 5, 

codified at 28 U.S.C. 2461 note. 

11 Inflation Adjustment Act sections 3 and 5, 

codified at 28 U.S.C. 2461 note. 

12 Inflation Adjustment Act section 5, codified at 

28 U.S.C. 2461 note; see also Memorandum to the 

Exec. Dep’ts & Agencies from Russell T. Vought, 

Director, Office of Mgmt. & Budget (Dec. 23, 2020), 

available at https://www.whitehouse.gov/wpcontent/uploads/2020/12/M-21-10.pdf. 

13See Inflation Adjustment Act section 2, 

codified at 28 U.S.C. 2461 note. 

14Memorandum to the Exec. Dep’ts & Agencies 

from Russell T. Vought, Director, Office of Mgmt. 

& Budget (Dec. 23, 2020), available at https://

www.whitehouse.gov/wp-content/uploads/2020/12/ 

M-21-10.pdf. 

15 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1083 

Civil Penalty Inflation Adjustments 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule. 

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, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Willie Williams, Paralegal Specialist; 

Rachel Ross, Attorney-Advisor, Office of 

Regulations, at (202) 435–7700. 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 inflation-adjusted 

maximum amounts for each civil 

penalty within the Bureau’s 

jurisdiction.6 The Bureau finalized the 

IFR on January 31, 2019.7

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).8 The Bureau annually adjusted 

its civil penalty amounts, as required by 

the Act, through rules issued in January 

2017, January 2018, January 2019, and 

January 2020.9

Specifically, the Act directs Federal 

agencies to adjust annually each civil 

penalty provided by law within the 

jurisdiction of the agency by the ‘‘costof-living adjustment.’’ 10 The ‘‘cost-ofliving 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.11 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. 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.12 The adjustments 

are designed to keep pace with inflation 

so that civil penalties retain their 

deterrent effect and promote compliance 

with the law.13

For the 2021 annual adjustment, the 

multiplier reflecting the ‘‘cost-of-living 

adjustment’’ is 1.01182.14

II. Adjustment 

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.15 The new penalty 

amounts that apply to civil penalties 

assessed after January 15, 2021, are as 

follows: 

Law Penalty description 

Penalty 

amounts 

established 

under 2020 

final rule 

OMB ‘‘Cost-ofLiving Adjustment’’ multiplier 

New penalty 

amount 

Consumer Financial Protection Act, 12 U.S.C. 

5565(c)(2)(A).

Tier 1 penalty .................................................................. $5,883 1.01182 $5,953 

Consumer Financial Protection Act, 12 U.S.C. 

5565(c)(2)(B).

Tier 2 penalty .................................................................. 29,416 1.01182 29,764 

Consumer Financial Protection Act, 12 U.S.C. 

5565(c)(2)(C).

Tier 3 penalty .................................................................. 1,176,638 1.01182 1,190,546 

Interstate Land Sales Full Disclosure Act, 15 U.S.C. 

1717a(a)(2).

Per violation .................................................................... 2,050 1.01182 2,074 

3768 Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Rules and Regulations 

16 5 U.S.C. 553(b)(B). 

17 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

18Memorandum to the Exec. Dep’ts & Agencies 

from Russell T. Vought, Director, Office of Mgmt. 

& Budget (Dec. 23, 2020), available at https://

www.whitehouse.gov/wp-content/uploads/2020/12/ 

M-21-10.pdf. 

19 5 U.S.C. 553(d). 

20 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

21 Memorandum to the Exec. Dep’ts & Agencies 

from Russell T. Vought, Director, Office of Mgmt. 

& Budget (Dec. 23, 2020), available at https://

www.whitehouse.gov/wp-content/uploads/2020/12/ 

M-21-10.pdf. 

22 5 U.S.C. 603(a), 604(a). 

23 44 U.S.C. 3501–3521. 

Law Penalty description 

Penalty 

amounts 

established 

under 2020 

final rule 

OMB ‘‘Cost-ofLiving Adjustment’’ multiplier 

New penalty 

amount 

Interstate Land Sales Full Disclosure Act, 15 U.S.C. 

1717a(a)(2).

Annual cap ...................................................................... 2,048,915 1.01182 2,073,133 

Real Estate Settlement Procedures Act, 12 U.S.C. 

2609(d)(1).

Per failure ....................................................................... 96 1.01182 97 

Real Estate Settlement Procedures Act, 12 U.S.C. 

2609(d)(1).

Annual cap ...................................................................... 192,768 1.01182 195,047 

Real Estate Settlement Procedures Act, 12 U.S.C. 

2609(d)(2)(A).

Per failure, where intentional .......................................... 193 1.01182 195 

SAFE Act, 12 U.S.C. 5113(d)(2) ..................................... Per violation .................................................................... 29,707 1.01182 30,058 

Truth in Lending Act, 15 U.S.C. 1639e(k)(1) .................. First violation ................................................................... 11,767 1.01182 11,906 

Truth in Lending Act, 15 U.S.C. 1639e(k)(2) .................. Subsequent violations ..................................................... 23,533 1.01182 23,811 

III. Procedural Requirements 

A. Administrative Procedure Act 

Under the Administrative Procedure 

Act, 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.16 The 

adjustments to the civil penalty 

amounts are technical and nondiscretionary, 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 civil 

penalties annually notwithstanding 

section 553 of the APA,17 and OMB 

Guidance reaffirms that agencies need 

not complete a notice-and-comment 

process before making the annual 

adjustments for inflation.18 For these 

reasons, the Bureau has determined that 

publishing a notice of proposed 

rulemaking and providing opportunity 

for public comment are unnecessary. 

The amendments therefore 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.19 At minimum, the Bureau 

believes the annual adjustments to the 

civil penalty amounts in § 1083.1(a) 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, 2021. The 

amendments to § 1083.1(a) in this final 

rule are technical and nondiscretionary, and they merely apply the 

statutory method for adjusting civil 

penalty amounts and follow the 

statutory directive to make annual 

adjustments each year. Moreover, the 

Inflation Adjustment Act directs 

agencies to adjust the civil penalties 

annually notwithstanding section 553 of 

the APA,20 and OMB Guidance 

reaffirms that agencies need not provide 

a delay in effective date for the annual 

adjustments for inflation.21

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.22

C. Paperwork Reduction Act 

The Bureau has determined that this 

final rule does not impose any new or 

revise any existing recordkeeping, 

reporting, or disclosure requirements on 

covered entities or members of the 

public that would be collections of 

information requiring approval by the 

Office of Management and Budget under 

the Paperwork Reduction Act.23

D. 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). 

IV. Signing Authority 

The Deputy Associate Director for 

Research, Markets and Regulations, Dan 

S. Sokolov, having reviewed and 

approved this document, is delegating 

the authority to electronically sign this 

document to Grace Feola, a Bureau 

Federal Register Liaison, for purposes of 

publication in the Federal Register. 

List of Subjects in 12 CFR Part 1083 

Administrative practice and 

procedure, Consumer protection, 

Penalties. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau amends 12 CFR 

part 1083, as set forth below: 

PART 1083—CIVIL PENALTY 

ADJUSTMENTS 

■ 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. 

■ 2. Section 1083.1 is revised to read as 

follows: 

§ 1083.1 Adjustment 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: 

Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Rules and Regulations 3769 

Law Penalty description 

Adjusted 

maximum civil 

penalty 

amount 

12 U.S.C. 5565(c)(2)(A) ............................................................. Tier 1 penalty ............................................................................. $5,953 

12 U.S.C. 5565(c)(2)(B) ............................................................. Tier 2 penalty ............................................................................. 29,764 

12 U.S.C. 5565(c)(2)(C) ............................................................. Tier 3 penalty ............................................................................. 1,190,546 

15 U.S.C. 1717a(a)(2) ................................................................ Per violation ................................................................................ 2,074 

15 U.S.C. 1717a(a)(2) ................................................................ Annual cap ................................................................................. 2,073,133 

12 U.S.C. 2609(d)(1) .................................................................. Per failure ................................................................................... 97 

12 U.S.C. 2609(d)(1) .................................................................. Annual cap ................................................................................. 195,047 

12 U.S.C. 2609(d)(2)(A) ............................................................. Per failure, where intentional ...................................................... 195 

12 U.S.C. 5113(d)(2) .................................................................. Per violation ................................................................................ 30,058 

15 U.S.C. 1639e(k)(1) ................................................................ First violation .............................................................................. 11,906 

15 U.S.C. 1639e(k)(2) ................................................................ Subsequent violations ................................................................ 23,811 

(b) The adjustments in paragraph (a) 

of this section shall apply to civil 

penalties assessed after January 15, 

2021, whose associated violations 

occurred on or after November 2, 2015. 

Dated: January 12, 2021. 

Grace Feola, 

Federal Register Liaison, Bureau of Consumer 

Financial Protection. 

[FR Doc. 2021–00925 Filed 1–14–21; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2018–1046; Product 

Identifier 2018–CE–049–AD; Amendment 

39–21371; AD 2020–26–16] 

RIN 2120–AA64 

Airworthiness Directives; Piper 

Aircraft, Inc. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Piper Aircraft, Inc. (Piper) Models PA– 

28–151, PA–28–161, PA–28–181, PA– 

28–235, PA–28R–180, PA–28R–200, 

PA–28R–201, PA–28R–201T, PA–28RT– 

201, PA–28RT–201T, PA–32–260, PA– 

32–300, PA–32R–300, PA–32RT–300, 

and PA–32RT–300T airplanes. This AD 

was prompted by a report of a wing 

separation caused by fatigue cracking in 

a visually inaccessible area of the lower 

main wing spar cap. This AD requires 

calculating the factored service hours 

for each main wing spar to determine 

when an inspection is required, 

inspecting the lower main wing spar 

bolt holes for cracks, and replacing any 

cracked main wing spar. The FAA is 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective February 16, 

2021. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of February 16, 2021. 

ADDRESSES: For service information 

identified in this final rule, contact 

Piper Aircraft, Inc., 2926 Piper Drive, 

Vero Beach, Florida 32960; phone: (772) 

567–4361; website: https://

www.piper.com. You may view this 

service information at the FAA, 

Airworthiness Products Section, 

Operational Safety Branch, 901 Locust, 

Kansas City, Missouri 64106. For 

information on the availability of this 

material at the FAA, call (816) 329– 

4148. It is also available at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

1046. 

Examining the AD Docket 

You may examine the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2018–1046; or in person at Docket 

Operations between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. The AD docket contains this 

final rule, any comments received, and 

other information. The address for 

Docket Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: Dan 

McCully, Aviation Safety Engineer, 

Atlanta ACO Branch, FAA, 1701 

Columbia Avenue, College Park, Georgia 

30337; phone: (404) 474–5548; fax: (404) 

474–5605; email: william.mccully@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to certain Piper Models PA–28– 

140, PA–28–150, PA–28–151, PA–28– 

160, PA–28–161, PA–28–180, PA–28– 

181, PA–28–235, PA–28R–180, PA– 

28R–200, PA–28R–201, PA–28R–201T, 

PA–28RT–201, PA–28RT–201T, PA–32– 

260, and PA–32–300 airplanes. The 

NPRM published in the Federal 

Register on December 21, 2018 (83 FR 

65592). The NPRM was prompted by a 

fatal accident involving wing separation 

on a Piper Model PA–28R–201 airplane. 

An investigation revealed a fatigue crack 

in a visually inaccessible area of the 

lower main wing spar cap. The NPRM 

included other model airplanes with 

similar wing spar structures as the 

Model PA–28R–201. Based on airplane 

usage history, the FAA determined that 

only those airplanes with higher risk for 

fatigue cracks (airplanes with a 

significant history of operation in flight 

training or other high-load 

environments) should be subject to the 

inspection requirements proposed in the 

NPRM. 

Because airplanes used in training 

and other high-load environments are 

typically operated for hire and have 

inspection programs that require 100- 

hour inspections, the FAA determined 

the number of 100-hour inspections an 

airplane has undergone would be the 

best indicator of the airplane’s usage 

history. Accordingly, the FAA 

developed a factored service hours 

formula based on the number of 100- 

hour inspections completed on the 

airplane. 

In the NPRM, the FAA proposed to 

require a review of the airplane 

maintenance records to determine the 

number of 100-hour inspections and the 

application of the factored service hours 

formula to identify when an airplane 

meets the criteria for the proposed eddy 

current inspection of the lower main 

wing spar bolt holes. The FAA also 

proposed to require inspecting the lower 

main wing spar bolt holes for cracks 

once a main wing spar exceeds the 

specified factored service hours and