This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

1787 

Vol. 89, No. 8 

Thursday, January 11, 2024 

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 CFPB 

was not obligated to solicit comment for the interim 

final rule, the CFPB 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 for the Heads of Exec. Dep’ts & 

Agencies from Shalanda D. Young, Director, 

Implementation of Penalty Inflation Adjustments 

for 2023, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 

2015, Off. of Mgmt. & Budget (Dec. 19, 2023), 

available at https://www.whitehouse.gov/wpcontent/uploads/2023/12/M-24-07-Implementationof-Penalty-Inflation-Adjustments-for-2024.pdf. 

9See 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 

12, 2018); 84 FR 517 (Jan. 31, 2019); 85 FR 2012 

(Jan. 14, 2020); 86 FR 3767 (Jan. 15, 2021); 87 FR 

2314 (Jan. 14, 2022); 88 FR 1 (Jan. 3, 2023). 

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 for the 

Heads of Exec. Dep’ts & Agencies from Shalanda D. 

Young, Director, Implementation of Penalty 

Inflation Adjustments for 2023, Pursuant to the 

Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015, Off. of Mgmt. & Budget 

(Dec. 19, 2023), available at https://

www.whitehouse.gov/wp-content/uploads/2023/12/ 

M-24-07-Implementation-of-Penalty-InflationAdjustments-for-2024.pdf. 

13See Inflation Adjustment Act section 2, 

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

14 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1083 

Civil Penalty Inflation Adjustments 

AGENCY: Consumer Financial Protection 

Bureau. 

ACTION: Final rule. 

SUMMARY: The Consumer Financial 

Protection Bureau (CFPB) is adjusting 

for inflation the maximum amount of 

each civil penalty within the CFPB’s 

jurisdiction. These adjustments are 

required by the Federal Civil Penalties 

Inflation Adjustment Act of 1990 

(Inflation Adjustment Act), 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. 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, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Anna Boadwee and Adrien Fernandez, 

Attorney-Advisors, 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 Inflation Adjustment Act,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 2015,3 directs Federal agencies to 

adjust the civil penalty amounts within 

their jurisdictions for inflation 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 CFPB published its interim 

final rule (IFR) to make the initial catchup adjustments to civil penalties within 

the CFPB’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 CFPB’s 

jurisdiction.6 The CFPB 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 CFPB annually adjusted its 

civil penalty amounts, as required by 

the Act.9

Specifically, the Inflation Adjustment 

Act directs Federal agencies to adjust 

annually each civil penalty provided by 

law within the jurisdiction of each 

agency by the ‘‘cost-of-living 

adjustment.’’ 10 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.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 2024 annual adjustment, the 

multiplier reflecting the ‘‘cost-of-living 

adjustment’’ is 1.03241. 

II. Adjustment 

Pursuant to the Inflation Adjustment 

Act and OMB Guidance, the CFPB 

multiplied each of its civil penalty 

amounts by the ‘‘cost-of-living 

adjustment’’ multiplier and rounded to 

the nearest dollar.14 The new penalty 

amounts that apply to civil penalties 

assessed after January 15, 2024 are as 

follows: 


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15Numbers may not multiply to totals shown 

because of rounding. 

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

17 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

18Memorandum for the Heads of Exec. Dep’ts & 

Agencies from Shalanda D. Young, Director, 

Implementation of Penalty Inflation Adjustments 

for 2023, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 

2015, Off. of Mgmt. & Budget (Dec. 19, 2023), 

available at https://www.whitehouse.gov/wpcontent/uploads/2023/12/M-24-07-Implementationof-Penalty-Inflation-Adjustments-for-2024.pdf. 

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

20 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

21Memorandum for the Heads of Exec. Dep’ts & 

Agencies from Shalanda D. Young, Director, 

Implementation of Penalty Inflation Adjustments 

for 2023, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 

2015, Off. of Mgmt. & Budget (Dec. 19, 2023), 

available at https://www.whitehouse.gov/wpcontent/uploads/2023/12/M-24-07-Implementationof-Penalty-Inflation-Adjustments-for-2024.pdf. 

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

23 44 U.S.C. 3506; 5 CFR part 1320. 

Law Penalty description 

Penalty 

amounts 

established 

under 2023 

final rule 

OMB 

‘‘cost-of-living 

adjustment’’ 

multiplier 

New 

penalty 

amount 15

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

5565(c)(2)(A).

Tier 1 penalty ..................................... $6,813 1.03241 $7,034 

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

5565(c)(2)(B).

Tier 2 penalty ..................................... 34,065 1.03241 35,169 

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

5565(c)(2)(C).

Tier 3 penalty ..................................... 1,362,567 1.03241 1,406,728 

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

1717a(a)(2).

Per violation ....................................... 2,374 1.03241 2,451 

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

1717a(a)(2).

Annual cap ......................................... 2,372,677 1.03241 2,449,575 

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

2609(d)(1).

Per failure ........................................... 111 1.03241 115 

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

2609(d)(1).

Annual cap ......................................... 223,229 1.03241 230,464 

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

2609(d)(2)(A).

Per failure, where intentional ............. 223 1.03241 230 

SAFE Act, 12 U.S.C. 5113(d)(2) ................................. Per violation ....................................... 34,401 1.03241 35,516 

Truth in Lending Act, 15 U.S.C. 1639e(k)(1) .............. First violation ...................................... 13,627 1.03241 14,069 

Truth in Lending Act, 15 U.S.C. 1639e(k)(2) .............. Subsequent violations ........................ 27,252 1.03241 28,135 

III. Procedural Requirements 

A. Administrative Procedure Act 

Under the APA, notice and 

opportunity for public comment are not 

required if the CFPB 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 CFPB 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 CFPB 

believes the annual adjustments to the 

civil penalty amounts in § 1083.1(a) fall 

under the third exception to section 

553(d). The CFPB finds that there is 

good cause to make the amendments 

effective on January 15, 2024. 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 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.22 As noted previously, 

the CFPB has determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this final 

rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,23 the CFPB 

reviewed this final rule. The CFPB has 

determined that this rule does not create 

any new information collections or 

substantially revise any existing 

collections. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the CFPB 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 1083 

Administrative practice and 

procedure, Consumer protection, 

Penalties. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the CFPB amends 12 CFR part 

1083 as set forth below: 


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Federal Register / Vol. 89, No. 8 / Thursday, January 11, 2024 / Rules and Regulations 1789 

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: 

TABLE 1 TO PARAGRAPH (a) 

Law Penalty description 

Adjusted 

maximum civil 

penalty amount 

12 U.S.C. 5565(c)(2)(A) ............................................................ Tier 1 penalty ........................................................................... $7,034 

12 U.S.C. 5565(c)(2)(B) ............................................................ Tier 2 penalty ........................................................................... 35,169 

12 U.S.C. 5565(c)(2)(C) ........................................................... Tier 3 penalty ........................................................................... 1,406,728 

15 U.S.C. 1717a(a)(2) .............................................................. Per violation ............................................................................. 2,451 

15 U.S.C. 1717a(a)(2) .............................................................. Annual cap ............................................................................... 2,449,575 

12 U.S.C. 2609(d)(1) ................................................................ Per failure ................................................................................. 115 

12 U.S.C. 2609(d)(1) ................................................................ Annual cap ............................................................................... 230,464 

12 U.S.C. 2609(d)(2)(A) ........................................................... Per failure, where intentional ................................................... 230 

12 U.S.C. 5113(d)(2) ................................................................ Per violation ............................................................................. 35,516 

15 U.S.C. 1639e(k)(1) .............................................................. First violation ............................................................................ 14,069 

15 U.S.C. 1639e(k)(2) .............................................................. Subsequent violations .............................................................. 28,135 

(b) The adjustments in paragraph (a) 

of this section shall apply to civil 

penalties assessed after January 15, 

2024, whose associated violations 

occurred on or after November 2, 2015. 

Brian Shearer, 

Senior Advisor, Consumer Financial 

Protection Bureau. 

[FR Doc. 2024–00456 Filed 1–10–24; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2023–2114; Airspace 

Docket No. 23–AEA–17] 

RIN 2120–AA66 

Amendment of Class E Airspace; 

Bedford, PA 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This action amends the Class 

E airspace at Bedford, PA. This action 

is the result of an airspace review 

conducted due to the decommissioning 

of the St. Thomas very high frequency 

omnidirectional range (VOR) as part of 

the VOR Minimum Operating Network 

(MON) Program. This action brings the 

airspace into compliance with FAA 

orders to support instrument flight rule 

(IFR) operations. 

DATES: Effective 0901 UTC, March 21, 

2024. The Director of the Federal 

Register approves this incorporation by 

reference action under 1 CFR part 51, 

subject to the annual revision of FAA 

Order JO 7400.11 and publication of 

conforming amendments. 

ADDRESSES: A copy of the Notice of 

Proposed Rulemaking (NPRM), all 

comments received, this final rule, and 

all background material may be viewed 

online at www.regulations.gov using the 

FAA Docket number. Electronic 

retrieval help and guidelines are 

available on the website. It is available 

24 hours each day, 365 days each year. 

FAA Order JO 7400.11H, Airspace 

Designations and Reporting Points, and 

subsequent amendments can be viewed 

online at www.faa.gov/air_traffic/ 

publications/. You may also contact the 

Rules and Regulations Group, Office of 

Policy, Federal Aviation 

Administration, 800 Independence 

Avenue SW, Washington, DC 20591; 

telephone: (202) 267–8783. 

FOR FURTHER INFORMATION CONTACT: 

Jeffrey Claypool, Federal Aviation 

Administration, Operations Support 

Group, Central Service Center, 10101 

Hillwood Parkway, Fort Worth, TX 

76177; telephone (817) 222–5711. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. This rulemaking is 

promulgated under the authority 

described in Subtitle VII, Part A, 

Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of airspace necessary to ensure the 

safety of aircraft and the efficient use of 

airspace. This regulation is within the 

scope of that authority as it amends the 

Class E airspace extending upward from 

700 feet above the surface at Bedford 

County Airport, Bedford, PA, to support 

IFR operations at this airport. 

History 

The FAA published an NPRM for 

Docket No. FAA–2023–2114 in the 

Federal Register (88 FR 76155; 

November 6, 2023) proposing to amend 

the Class E airspace at Bedford, PA. 

Interested parties were invited to 

participate in this rulemaking effort by 

submitting written comments on the 

proposal to the FAA. No comments 

were received. 

Incorporation by Reference 

Class E airspace designations are 

published in paragraph 6005 of FAA 

Order JO 7400.11, Airspace 

Designations and Reporting Points, 

which is incorporated by reference in 14 

CFR 71.1 on an annual basis. This 

document amends the current version of 

that order, FAA Order JO 7400.11H, 

dated August 11, 2023, and effective 

September 15, 2023. FAA Order JO 

7400.11H is publicly available as listed 

in the ADDRESSES section of this 


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