2314 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations 

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 for the Heads of Exec. Dep’ts & 

Agencies from Shalanda D. Young, Acting Director, 

Implementation of Penalty Inflation Adjustments 

for 2022, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 

2015, Off. of Mgmt. & Budget (Dec. 15, 2021), 

available at https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.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); 86 FR 3767 (Jan. 15, 2021). 

10 Inflation Adjustment Act sections 4 and 5, 

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

TABLE 1 TO PARAGRAPH (b)—Continued 

Statute Adjusted civil 

money penalty 

Third Tier ...................................................................................................................................................................................... 2,202,123 

12 U.S.C. 3110(a) ................................................................................................................................................................................ 50,326 

12 U.S.C. 3110(c): 

First Tier ....................................................................................................................................................................................... 4,027 

Second Tier .................................................................................................................................................................................. 40,259 

Third Tier ...................................................................................................................................................................................... 2,013,008 

12 U.S.C. 3909(d) ................................................................................................................................................................................ 2,739 

15 U.S.C. 78u–2(b)(1): 

For a natural person ..................................................................................................................................................................... 10,360 

For any other person .................................................................................................................................................................... 103,591 

15 U.S.C. 78u–2(b)(2): 

For a natural person ..................................................................................................................................................................... 103,591 

For any other person .................................................................................................................................................................... 517,955 

15 U.S.C. 78u–2(b)(3): 

For a natural person ..................................................................................................................................................................... 207,183 

For any other person .................................................................................................................................................................... 1,035,909 

15 U.S.C. 1639e(k)(1) ......................................................................................................................................................................... 12,647 

15 U.S.C. 1639e(k)(2) ......................................................................................................................................................................... 25,293 

42 U.S.C. 4012a(f)(5) .......................................................................................................................................................................... 2,392 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority. 

Ann Misback, 

Secretary of the Board. 

[FR Doc. 2022–00592 Filed 1–13–22; 8:45 am] 

BILLING CODE 6210–01–P 

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, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Willie Williams, Paralegal Specialist; 

Lanique Eubanks, Senior Counsel, 

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, 

January 2020, and January 2021.9

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 


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Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations 2315 

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, Acting Director, Implementation of Penalty 

Inflation Adjustments for 2022, Pursuant to the 

Federal Civil Penalties Inflation Adjustment Act 

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

(Dec. 15, 2021), available at https://

www.whitehouse.gov/wp-content/uploads/2021/12/ 

M-22-07.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. 

15 5 U.S.C. 553(b)(B). 

16 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

17Memorandum for the Heads of Exec. Dep’ts & 

Agencies from Shalanda D. Young, Acting Director, 

Implementation of Penalty Inflation Adjustments 

for 2022, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 

2015, Off. of Mgmt. & Budget (Dec. 15, 2021), 

available at https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. 

18 5 U.S.C. 553(d). 

19 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

20Memorandum for the Heads of Exec. Dep’ts & 

Agencies from Shalanda D. Young, Acting Director, 

Implementation of Penalty Inflation Adjustments 

for 2022, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 

2015, Off. of Mgmt. & Budget (Dec. 15, 2021), 

available at https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. 

21 5 U.S.C. 603(a), 604(a). 

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 2022 annual adjustment, the 

multiplier reflecting the ‘‘cost-of-living 

adjustment’’ is 1.06222. 

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.14 The new penalty 

amounts that apply to civil penalties 

assessed after January 15, 2022, are as 

follows: 

Law Penalty description 

Penalty 

amounts 

established 

under 2021 

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 .................................................................. $5,953 1.06222 $6,323 

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

5565(c)(2)(B).

Tier 2 penalty .................................................................. 29,764 1.06222 31,616 

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

5565(c)(2)(C).

Tier 3 penalty .................................................................. 1,190,546 1.06222 1,264,622 

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

1717a(a)(2).

Per violation .................................................................... 2,074 1.06222 2,203 

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

1717a(a)(2).

Annual cap ...................................................................... 2,073,133 1.06222 2,202,123 

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

2609(d)(1).

Per failure ....................................................................... 97 1.06222 103 

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

2609(d)(1).

Annual cap ...................................................................... 195,047 1.06222 207,183 

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

2609(d)(2)(A).

Per failure, where intentional .......................................... 195 1.06222 207 

SAFE Act, 12 U.S.C. 5113(d)(2) ..................................... Per violation .................................................................... 30,058 1.06222 31,928 

Truth in Lending Act, 15 U.S.C. 1639e(k)(1) .................. First violation ................................................................... 11,906 1.06222 12,647 

Truth in Lending Act, 15 U.S.C. 1639e(k)(2) .................. Subsequent violations ..................................................... 23,811 1.06222 25,293 

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.15 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,16 and OMB 

Guidance reaffirms that agencies need 

not complete a notice-and-comment 

process before making the annual 

adjustments for inflation.17 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.18 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, 2022. 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,19 and OMB Guidance 

reaffirms that agencies need not provide 

a delay in effective date for the annual 

adjustments for inflation.20

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.21


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2316 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations 

22 44 U.S.C. 3501–3521. 

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.22

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 Associate Director for Research, 

Markets and Regulations, Janis K. 

Pappalardo, having reviewed and 

approved this document, is delegating 

the authority to electronically sign this 

document to Laura Galban, 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: 

TABLE 1 TO PARAGRAPH (a) 

Law Penalty description 

Adjusted 

maximum civil 

penalty 

amount 

12 U.S.C. 5565(c)(2)(A) ............................................................. Tier 1 penalty ............................................................................. $6,323 

12 U.S.C. 5565(c)(2)(B) ............................................................. Tier 2 penalty ............................................................................. 31,616 

12 U.S.C. 5565(c)(2)(C) ............................................................. Tier 3 penalty ............................................................................. 1,264,622 

15 U.S.C. 1717a(a)(2) ................................................................ Per violation ................................................................................ 2,203 

15 U.S.C. 1717a(a)(2) ................................................................ Annual cap ................................................................................. 2,202,123 

12 U.S.C. 2609(d)(1) .................................................................. Per failure ................................................................................... 103 

12 U.S.C. 2609(d)(1) .................................................................. Annual cap ................................................................................. 207,183 

12 U.S.C. 2609(d)(2)(A) ............................................................. Per failure, where intentional ...................................................... 207 

12 U.S.C. 5113(d)(2) .................................................................. Per violation ................................................................................ 31,928 

15 U.S.C. 1639e(k)(1) ................................................................ First violation .............................................................................. 12,647 

15 U.S.C. 1639e(k)(2) ................................................................ Subsequent violations ................................................................ 25,293 

(b) The adjustments in paragraph (a) 

of this section shall apply to civil 

penalties assessed after January 15, 

2022, whose associated violations 

occurred on or after November 2, 2015. 

Laura Galban, 

Federal Register Liaison, Bureau of Consumer 

Financial Protection. 

[FR Doc. 2022–00672 Filed 1–13–22; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2021–0689; Project 

Identifier AD–2020–01589–R; Amendment 

39–21898; AD 2022–02–01] 

RIN 2120–AA64 

Airworthiness Directives; Sikorsky 

Aircraft Corporation Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Sikorsky Aircraft Corporation Model S– 

92A helicopters. This AD was prompted 

by a cracked main rotor stationary 

swashplate assembly (swashplate 

assembly). This AD requires visually 

inspecting the swashplate assembly at 

specified intervals and depending on 

the results, removing the swashplate 

assembly from service. The FAA is 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective February 18, 

2022. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of February 18, 2022. 

ADDRESSES: For service information 

identified in this final rule, contact your 

local Sikorsky Field Representative or 

Sikorsky’s Service Engineering Group at 

Sikorsky Aircraft Corporation, Mailstop 

K100, 124 Quarry Road, Trumbull, CT 

06611; telephone 1–800–946–4337 (1– 

800–Winged–S); email wcs_cust_

service_eng.gr-sik@lmco.com. Operators 


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