3618 Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations 

12Pursuant to section 5(a)(3) of the 2015 Act, any 

increase determined under the subsection shall be 

rounded to the nearest $1. 

13Pursuant to section 4(d) of the 1990 Act, as 

amended. 

14OMB Circular M–25–02, Implementation of 

Penalty Inflation Adjustments for 2025, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

15 28 U.S.C. 2461 note, section 7(a). 

16OMB Circular M–25–02, Implementation of 

Penalty Inflation Adjustments for 2025, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

17 12 CFR 622.61(a)(1). 18 12 CFR 622.61(a)(2). 

1990 Act, as amended, by the 2015 

Act.12

2. Other Adjustments 

If a civil monetary penalty is subject 

to a cost-of-living adjustment under the 

1990 Act, as amended, but is adjusted 

to an amount greater than the amount of 

the adjustment required under the Act 

within the 12 months preceding a 

required cost-of-living adjustment, the 

agency is not required to make the costof-living adjustment to that CMP in that 

calendar year.13

III. Yearly Adjustments 

A. Mathematical Calculations of 2025 

Adjustments 

The adjustment requirement affects 

two provisions of section 5.32(a) of the 

Farm Credit Act. For the 2025 yearly 

adjustments to the CMPs set forth by the 

Farm Credit Act, the calculation 

required by the 2024 White House 

Office of Management and Budget 

(OMB) guidance 14 is based on the 

percentage by which the CPI for October 

2024 exceeds the CPI for October 2023. 

The OMB set forth guidance, as required 

by the 2015 Act,15 with a multiplier for 

calculating the new CMP values.16 The 

2024 OMB multiplier for the 2025 CMPs 

is 1.02598. 

The adjustment also affects the CMPs 

set by the Flood Disaster Protection Act 

of 1973, as amended. The adjustment 

multiplier is the same for all FCA 

enforced CMPs, set at 1.02598. The 

maximum CMPs for violations were 

created in 2012 by the Biggert-Waters 

Act, which amended the Flood Disaster 

Protection Act of 1973. 

1. New Penalty Amount in § 622.61(a)(1) 

The inflation-adjusted CMP currently 

in effect for violations of a final order 

occurring on or after January 15, 2024, 

is a maximum daily amount of $2,830.17

Multiplying the $2,830 CMP by the 2024 

OMB multiplier, 1.02598, yields a total 

of $2,903.52. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended, the inflationadjusted maximum increases to $2,904. 

Thus, the new CMP maximum is $2,904, 

for violations that occur on or after 

January 15, 2025. 

2. New Penalty Amount in § 622.61(a)(2) 

The inflation-adjusted CMP currently 

in effect for violations of the Farm 

Credit Act or regulations issued under 

the Farm Credit Act occurring on or 

after January 15, 2024, is a maximum 

daily amount of $1,280.18 Multiplying 

the $1,280 CMP maximum by the 2024 

OMB multiplier, 1.02598, yields a total 

of $1,313.25. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended the inflationadjusted maximum increases to $1,313. 

Thus, the new CMP maximum is $1,313, 

for violations that occur on or after 

January 15, 2025. 

3. New Penalty Amounts for Flood 

Insurance Violations Under § 622.61(b) 

The existing maximum CMP for a 

pattern or practice of flood insurance 

violations pursuant to 42 U.S.C. 

4012a(f)(5) occurring on or after January 

15, 2024, is $2,661. Multiplying $2,661 

by the 2024 OMB multiplier, 1.02598, 

yields a total of $2,730.13. When that 

number is rounded as required by 

section 5(a) of the 1990 Act, as 

amended, the new maximum 

assessment of the CMP for violating 42 

U.S.C. 4012a(f)(5) is $2,730. Thus, the 

new CMP maximum is $2,730, for 

violations that occur on or after January 

15, 2025. 

IV. Notice and Comment Not Required 

by the Administrative Procedure Act 

Section 4(b)(2) of the 1990 Act, as 

amended by section 701 of the 2015 Act 

(28 U.S.C. 2461 note), provides an 

exemption from the Administrative 

Procedure Act notice and comment 

requirements in 5 U.S.C. 553. Further, 

these revisions are ministerial, 

technical, and noncontroversial. For 

these reasons, the FCA has determined 

to adopt this rule in final form. 

V. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), the FCA hereby certifies that 

this final rule will not have a significant 

economic impact on a substantial 

number of small entities. Each of the 

banks in the System, considered 

together with its affiliated associations, 

has assets and annual income in excess 

of the amounts that would qualify them 

as small entities. Therefore, System 

institutions are not ‘‘small entities’’ as 

defined in the Regulatory Flexibility 

Act. 

List of Subjects in 12 CFR Part 622 

Administrative practice and 

procedure, Crime, Investigations, 

Penalties. 

For the reasons stated in the 

preamble, part 622 of chapter VI, title 12 

of the Code of Federal Regulations is 

amended to read as follows: 

PART 622—RULES OF PRACTICE AND 

PROCEDURE 

■ 1. The authority citation for part 622 

continues to read as follows: 

Authority: Secs. 5.9, 5.10, 5.17, 5.25–5.37 

of the Farm Credit Act (12 U.S.C. 2243, 2244, 

2252, 2261–2273); 28 U.S.C. 2461 note; and 

42 U.S.C. 4012a(f). 

■ 2. Revise § 622.61 to read as follows: 

§ 622.61 Adjustment of civil money 

penalties by the rate of inflation under the 

Federal Civil Penalties Inflation Adjustment 

Act of 1990, as amended. 

(a) The maximum amount of each 

civil money penalty within FCA’s 

jurisdiction is adjusted in accordance 

with the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended (28 U.S.C. 2461 note), as 

follows: 

(1) Amount of civil money penalty 

imposed under section 5.32 of the Act 

for violation of a final order issued 

under section 5.25 or 5.26 of the Act: 

The maximum daily amount is $2,904 

for violations that occur on or after 

January 15, 2025. 

(2) Amount of civil money penalty for 

violation of the Act or regulations: the 

maximum daily amount is $1,313 for 

each violation that occurs on or after 

January 15, 2025. 

(b) The maximum civil money penalty 

amount assessed under 42 U.S.C. 

4012a(f) is $2,730 for each violation that 

occurs on or after January 15, 2025, with 

no cap on the total amount of penalties 

that can be assessed against any single 

institution during any calendar year. 

Dated: January 10, 2025. 

Ashley Waldron, 

Secretary to the Board, Farm Credit 

Administration. 

[FR Doc. 2025–00963 Filed 1–14–25; 8:45 am] 

BILLING CODE 6705–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 747 

RIN 3133–AF65 

Civil Monetary Penalty Inflation 

Adjustment 

AGENCY: National Credit Union 

Administration (NCUA). 


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

1321–373 (Apr. 26, 1996). The law is codified at 28 

U.S.C. 2461 note. 

2Public Law 101–410, 104 Stat. 890 (Oct. 5, 

1990), codified at 28 U.S.C. 2461 note. 

3Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015). 

4 129 Stat. 599. 

5Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 

599 (Nov. 2, 2015). 

6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 

7, 2016). 

7Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 

599 (Nov. 2, 2015). 

8 82 FR 7640 (Jan. 23, 2017). 

9 82 FR 29710 (June 30, 2017). 

10 83 FR 2029 (Jan. 16, 2018); 84 FR 2052 (Feb. 

6, 2019); 85 FR 2009 (Jan. 14, 2020); 86 FR 933 (Jan. 

7, 2021); 87 FR 377 (Jan. 5, 2022); 88 FR 1323 (Jan. 

10, 2023); 89 FR 1441 (Jan. 10, 2024). 

11Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 599 (Nov. 2, 2015). 

12This index is published by the Department of 

Labor, Bureau of Labor Statistics, and is available 

at its website: https://www.bls.gov/cpi/. 

13Public Law 114–74, Sec. 701(b)(2)(B), 129 Stat. 

584, 600 (Nov. 2, 2015). 

14Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 600 (Nov. 2, 2015). 

15Public Law 114–74, Sec. 701(b)(4), 129 Stat. 

584, 601 (Nov. 2, 2015). 

16See OMB Memorandum M–25–02, 

Implementation of Penalty Inflation Adjustments 

for 2025, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(Dec. 17, 2024). 

17 Id. 

18Public Law 114–74, 129 Stat. 600 (Nov. 2, 

2015). 

ACTION: Final rule. 

SUMMARY: The NCUA Board (Board) is 

amending its regulations to adjust the 

maximum amount of each civil 

monetary penalty (CMP) within its 

jurisdiction to account for inflation. 

This action, including the amount of the 

adjustments, is required under the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Debt Collection Improvement Act of 

1996 and the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015. 

DATES: This final rule is effective 

January 15, 2025. 

FOR FURTHER INFORMATION CONTACT: Gira 

Bose, Senior Staff Attorney, at 1775 

Duke Street, Alexandria, VA 22314, via 

email at gbose@ncua.gov, or by 

telephone at (703) 518–6562. 

SUPPLEMENTARY INFORMATION: 

I. Legal Background 

II. Regulatory Procedures 

I. Legal Background 

A. Statutory Requirements 

Every Federal agency, including the 

NCUA, is required by law to adjust its 

maximum CMP amounts each year to 

account for inflation. Prior to this being 

an annual requirement, agencies were 

required to adjust their CMPs at least 

once every four years. The previous 

four-year requirement stemmed from the 

Debt Collection Improvement Act of 

1996,1 which amended the Federal Civil 

Penalties Inflation Adjustment Act of 

1990.2

The current annual requirement stems 

from the Bipartisan Budget Act of 2015,3

which contains the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 (the 2015 

amendments).4 This legislation 

provided for an initial ‘‘catch-up’’ 

adjustment of CMPs in 2016, followed 

by annual adjustments. The catch-up 

adjustment reset CMP maximum 

amounts by setting aside the inflation 

adjustments that agencies made in prior 

years and instead calculated inflation 

with reference to the year when each 

CMP was enacted or last modified by 

Congress. Agencies were required to 

publish their catch-up adjustments in an 

interim final rule by July 1, 2016, and 

make them effective by August 1, 2016.5

The NCUA complied with these 

requirements in a June 2016 interim 

final rule, followed by a November 2016 

final rule to confirm the adjustments as 

final.6

The 2015 amendments also specified 

how agencies must conduct annual 

inflation adjustments after the 2016 

catch-up adjustment. Following the 

catch-up adjustment, agencies must 

make the required adjustments and 

publish them in the Federal Register by 

January 15 each year.7 For 2017, the 

NCUA issued an interim final rule on 

January 6, 2017,8 followed by a final 

rule issued on June 23, 2017.9 For each 

of the years 2018 through 2024, the 

NCUA issued a final rule to satisfy the 

agency’s annual requirements.10 This 

final rule satisfies the agency’s 

requirement for the 2025 annual 

adjustment. 

The law provides that the adjustments 

shall be made notwithstanding the 

section of the Administrative Procedure 

Act (APA) that requires prior notice and 

public comment for agency 

rulemaking.11 The 2015 amendments 

also specify that each CMP maximum 

must be increased by the percentage by 

which the consumer price index for 

urban consumers (CPI–U) 12 for October 

of the year immediately preceding the 

year the adjustment is made exceeds the 

CPI–U for October of the prior year.13

Thus, for the adjustment to be made in 

2025, an agency must compare the 

October 2023 and October 2024 CPI–U 

figures. 

An annual adjustment under the 2015 

amendments is not required if a CMP 

has been amended in the preceding 12 

months pursuant to other authority. 

Specifically, the statute provides that an 

agency is not required to make an 

annual adjustment to a CMP if in the 

preceding 12 months it has been 

increased by an amount greater than the 

annual adjustment required by the 2015 

amendments.14 The NCUA did not 

make any adjustments in the preceding 

12 months pursuant to other authority. 

Therefore, this rulemaking adjusts all of 

the NCUA’s CMPs pursuant to the 2015 

amendments. 

B. Application to the 2025 Adjustments 

and Office of Management and Budget 

Guidance 

This section applies the statutory 

requirements and the Office of 

Management and Budget’s (OMB) 

guidance to the NCUA’s CMPs and sets 

forth the Board’s calculation of the 2025 

adjustments. 

The 2015 amendments directed OMB 

to issue guidance to agencies on 

implementing the inflation 

adjustments.15 OMB is required to issue 

its guidance each December and, with 

respect to the 2025 annual adjustment, 

did so on December 17, 2024.16 For 

2025, Federal agencies must adjust the 

maximum amounts of their CMPs by the 

percentage by which the October 2024 

CPI–U (315.664) exceeds the October 

2023 CPI–U (307.671). The resulting 

increase can be expressed as an inflation 

multiplier (1.02598) to apply to each 

current CMP maximum amount to 

determine the adjusted maximum. The 

OMB guidance also addresses 

rulemaking procedures and agency 

reporting and oversight requirements for 

CMPs.17

The following table presents the 

adjustment calculations. The current 

maximums are found at 12 CFR 

747.1001, as adjusted by the final rule 

that the Board approved in January 

2024. This amount is multiplied by the 

inflation multiplier to calculate the new 

maximum in the far-right column. Only 

these adjusted maximum amounts, and 

not the calculations, will be codified at 

12 CFR 747.1001 under this final rule. 

The adjusted amounts will be effective 

upon publication in the Federal 

Register and can be applied to 

violations that occurred on or after 

November 2, 2015, the date the 2015 

amendments were enacted.18


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19The table uses condensed descriptions of CMP 

tiers. Refer to the U.S. Code citations for complete 

descriptions. 

20Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 599 (Nov. 2, 2015). 

21See 5 U.S.C. 559; Asiana Airlines v. Fed. 

Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir. 

1998). 

22 5 U.S.C. 553(b)(3)(B); see Mid-Tex. Elec. Co-op., 

Inc. v. Fed. Energy Regulatory Comm’n, 822 F.2d 

1123 (D.C. Cir. 1987). For the same reasons, this 

final rule does not include the usual 60-day 

comment period under NCUA Interpretive Ruling 

and Policy Statement (IRPS) 87–2, as amended by 

IRPS 03–2 and 15–1 (Sept. 24, 2015). 

23 5 U.S.C. 553(b). 

24 5 U.S.C. 603, 604. 

25NCUA IRPS 15–1. 

26 5 U.S.C. 553(b)(3)(B). 

TABLE—CALCULATION OF MAXIMUM CMP ADJUSTMENTS

Citation Description and tier 19 Current maximum 

($) Multiplier 

Adjusted maximum 

($) 

(current maximum 

X multiplier, rounded to 

nearest dollar) 

12 U.S.C. 1782(a)(3) .................. Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report.4,899 ................................. 1.02598 5,026. 

12 U.S.C. 1782(a)(3) .................. Non-inadvertent failure to submit a report or the noninadvertent submission of a false or misleading report.48,992 ............................... 1.02598 50,265. 

12 U.S.C. 1782(a)(3) .................. Failure to submit a report or the submission of a false 

or misleading report done knowingly or with reckless disregard.

Lesser of 2,449,575 or 1% 

of total credit union (CU) 

assets.

1.02598 Lesser of 2,513,215 or 1% 

of total CU assets. 

12 U.S.C. 1782(d)(2)(A) ............. Tier 1 CMP for inadvertent failure to submit certified 

statement of insured shares and charges due to the 

National Credit Union Share Insurance Fund 

(NCUSIF), or inadvertent submission of false or 

misleading statement.

4,480 ................................. 1.02598 4,596. 

12 U.S.C. 1782(d)(2)(B) ............. Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading 

statement.

44,783 ............................... 1.02598 45,946. 

12 U.S.C. 1782(d)(2)(C) ............. Tier 3 CMP for failure to submit a certified statement 

or the submission of a false or misleading statement done knowingly or with reckless disregard.

Lesser of 2,239,210 or 1% 

of total CU assets.

1.02598 Lesser of 2,297,385 or 1% 

of total CU assets. 

12 U.S.C. 1785(a)(3) .................. Non-compliance with insurance logo requirements ..... 153 .................................... 1.02598 157. 

12 U.S.C. 1785(e)(3) .................. Non-compliance with NCUA security requirements ..... 356 .................................... 1.02598 365. 

12 U.S.C. 1786(k)(2)(A) ............. Tier 1 CMP for violations of law, regulation, and other 

orders or agreements.

12,249 ............................... 1.02598 12,567. 

12 U.S.C. 1786(k)(2)(B) ............. Tier 2 CMP for violations of law, regulation, and other 

orders or agreements and for recklessly engaging 

in unsafe or unsound practices or breaches of fiduciary duty.

61,238 ............................... 1.02598 62,829. 

12 U.S.C. 1786(k)(2)(C) ............. Tier 3 CMP for knowingly committing the violations 

under Tier 1 or 2 (natural person).

2,449,575 .......................... 1.02598 2,513,215. 

12 U.S.C. 1786(k)(2)(C) ............. Tier 3 CMP for knowingly committing the violations 

under Tier 1 or 2 (insured credit union).

Lesser of 2,449,575 or 1% 

of total CU assets.

1.02598 Lesser of 2,513,215 or 1% 

of total CU assets. 

12 U.S.C. 1786(w)(5)(A)(ii) ........ Non-compliance with senior examiner post-employment restrictions.402,920 ............................. 1.02598 413,388. 

15 U.S.C. 1639e(k) .................... Non-compliance with appraisal independence standards (first violation).14,069 ............................... 1.02598 14,435. 

15 U.S.C. 1639e(k) .................... Subsequent violations of the same .............................. 28,135 ............................... 1.02598 28,866. 

42 U.S.C. 4012a(f)(5) ................. Non-compliance with flood insurance requirements .... 2,661 ................................. 1.02598 2,730. 

II. Regulatory Procedures 

A. Final Rule Under the APA 

In the 2015 amendments, Congress 

provided that agencies shall make the 

required inflation adjustments in 2017 

and subsequent years notwithstanding 5 

U.S.C. 553, which generally requires 

agencies to follow notice-and-comment 

procedures in rulemaking and to make 

rules effective no sooner than 30 days 

after publication in the Federal 

Register.20 The 2015 amendments 

provide a clear exception to these 

requirements.21 In addition, the Board 

finds that notice-and-comment 

procedures would be impracticable and 

unnecessary under the APA because of 

the largely ministerial and technical 

nature of the final rule, which affords 

agencies limited discretion in 

promulgating the rule, and the statutory 

deadline for making the adjustments.22

In these circumstances, the Board finds 

good cause to issue a final rule without 

issuing a notice of proposed rulemaking 

or soliciting public comments. The 

Board also finds good cause to make the 

final rule effective upon publication 

because of the statutory deadline. 

Accordingly, this final rule is issued 

without prior notice and comment and 

will become effective immediately upon 

publication. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

generally requires that when an agency 

issues a proposed rule or a final rule 

pursuant to the APA 23 or another law, 

the agency must prepare a regulatory 

flexibility analysis that meets the 

requirements of the RFA and publish 

such analysis in the Federal Register.24

Specifically, the RFA normally requires 

agencies to describe the impact of a 

rulemaking on small entities by 

providing a regulatory impact analysis. 

For purposes of the RFA, the Board 

considers federally insured credit 

unions with assets less than $100 

million to be small entities.25

As discussed previously, consistent 

with the APA, the Board has determined 

for good cause that general notice and 

opportunity for public comment is 

unnecessary, and therefore the Board is 

not issuing a notice of proposed 

rulemaking.26 Rules that are exempt 

from notice and comment procedures 

are also exempt from the RFA 

requirements, including conducting a 

regulatory flexibility analysis, when 

among other things the agency for good 

cause finds that notice and public 

procedure are impracticable, 

unnecessary, or contrary to the public 

interest. 

Accordingly, the Board has concluded 

that the RFA’s requirements relating to 


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27 12 U.S.C. 1786(k)(2)(G)(i). 

28 44 U.S.C. 3507(d); 5 CFR part 1320. 

29Public Law 105–277, 112 Stat. 2681 (Oct. 21, 

1998). 

30 5 U.S.C. 801–808. 

31 5 U.S.C. 804(2). 

32 5 U.S.C. 808. 

initial and final regulatory flexibility 

analysis do not apply. 

Nevertheless, the Board notes that this 

final rule will not have a significant 

economic impact on a substantial 

number of small credit unions because 

it affects only the maximum amounts of 

CMPs that may be assessed in 

individual cases, which are not 

numerous and generally do not involve 

assessments at the maximum level. In 

addition, several of the CMPs are 

limited to a percentage of a credit 

union’s assets. Finally, in assessing 

CMPs, the Board generally must 

consider a party’s financial resources.27

Because this final rule will affect few, if 

any, small credit unions, the Board 

certifies that the final rule will not have 

a significant economic impact on a 

substantial number of small entities. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency creates a new paperwork 

burden on regulated entities or modifies 

an existing burden.28 For purposes of 

the PRA, a paperwork burden may take 

the form of either a reporting or a 

recordkeeping requirement, both 

referred to as information collections. 

This final rule adjusts the maximum 

amounts of certain CMPs that the Board 

may assess against individuals, entities, 

or credit unions but does not require 

any reporting or recordkeeping. 

Therefore, this final rule will not create 

new paperwork burdens or modify any 

existing paperwork burdens. 

D. Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. In adherence to 

fundamental federalism principles, the 

NCUA, an independent regulatory 

agency as defined in 44 U.S.C. 3502(5), 

voluntarily complies with the executive 

order. This final rule adjusts the 

maximum amounts of certain CMPs that 

the Board may assess against 

individuals, entities, and federally 

insured credit unions, including statechartered credit unions. However, the 

final rule does not create any new 

authority or alter the underlying 

statutory authorities that enable the 

Board to assess CMPs. Accordingly, this 

final rule will not have a substantial 

direct effect on the states, on the 

connection between the national 

government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. The Board has 

determined that this final rule does not 

constitute a policy that has federalism 

implications for purposes of the 

executive order. 

E. Assessment of Federal Regulations 

and Policies on Families 

The Board has determined that this 

final rule will not affect family wellbeing within the meaning of Section 654 

of the Treasury and General 

Government Appropriations Act, 

1999.29

F. Congressional Review Act 

For purposes of the Congressional 

Review Act,30 the OMB determines 

whether a final rule constitutes a ‘‘major 

rule.’’ If the OMB deems a rule to be a 

‘‘major rule,’’ the Congressional Review 

Act generally provides that the rule may 

not take effect until at least 60 days 

following its publication. As required by 

the Congressional Review Act, the 

Board submitted the final rule and other 

appropriate reports to the OMB which 

determined that this rule is not a ‘‘major 

rule.’’ The Board will also be submitting 

this rule to Congress and the 

Government Accountability Office for 

review. 

The Congressional Review Act defines 

a ‘‘major rule’’ as any rule that the 

Administrator of the Office of 

Information and Regulatory Affairs of 

the OMB finds has resulted in or is 

likely to result in (A) an annual effect 

on the economy of $100,000,000 or 

more; (B) a major increase in costs or 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies or geographic 

regions; or (C) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets.31

For the reasons previously stated, the 

Board is adopting the final rule without 

the delayed effective date generally 

prescribed under the Congressional 

Review Act. The delayed effective date 

required by the Congressional Review 

Act does not apply to any rule for which 

an agency for good cause finds (and 

incorporates the finding and a brief 

statement of reasons therefor in the rule 

issued) that notice and public 

procedures thereon are impracticable, 

unnecessary, or contrary to the public 

interest.32

List of Subjects in 12 CFR Part 747 

Civil monetary penalties, Credit 

unions. 

By the National Credit Union 

Administration Board on January 10, 2025. 

Ji Kwon, 

Acting Secretary of the Board. 

For the reasons stated in the 

preamble, the Board amends 12 CFR 

part 747 as follows: 

PART 747—ADMINISTRATIVE 

ACTIONS, ADJUDICATIVE HEARINGS, 

RULES OF PRACTICE AND 

PROCEDURE, AND INVESTIGATIONS 

■ 1. The authority for part 747 

continues to read as follows: 

Authority: 12 U.S.C. 1766, 1782, 1784, 

1785, 1786, 1787, 1790a, 1790d; 15 U.S.C. 

1639e; 42 U.S.C. 4012a; Public Law 101–410; 

Public Law 104–134; Public Law 109–351; 

Public Law 114–74. 

■ 2. Revise § 747.1001 to read as 

follows: 

§ 747.1001 Adjustment of civil monetary 

penalties by the rate of inflation. 

(a) The NCUA is required by the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (Pub. L. 101– 

410, 104 Stat. 890, as amended (28 

U.S.C. 2461 note)), to adjust the 

maximum amount of each civil 

monetary penalty (CMP) within its 

jurisdiction by the rate of inflation. The 

following chart displays those adjusted 

amounts, as calculated pursuant to the 

statute: 

U.S. Code citation CMP description New maximum amount 

(1) 12 U.S.C. 1782(a)(3) .......... Inadvertent failure to submit a report or the inadvertent submission of a false 

or misleading report.

$5,026. 

(2) 12 U.S.C. 1782(a)(3) .......... Non-inadvertent failure to submit a report or the non-inadvertent submission 

of a false or misleading report.

$50,265. 

(3) 12 U.S.C. 1782(a)(3) .......... Failure to submit a report or the submission of a false or misleading report 

done knowingly or with reckless disregard.

$2,513,215 or 1% of the total assets of the credit 

union, whichever is less. 


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3622 Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations 

1While the terms ‘‘employer’’ and ‘‘employee’’ 

are used throughout, this advisory opinion applies 

more broadly to situations where consumers receive 

payment for work performed. 

2A recent CFPB report describes rapid recent 

growth in one part of this developing market. See 

CFPB, Developments in the Paycheck Advance 

Market, at 3 (July 2024) (hereinafter 2024 Paycheck 

Advance Report). 

U.S. Code citation CMP description New maximum amount 

(4) 12 U.S.C. 1782(d)(2)(A) ..... Tier 1 CMP for inadvertent failure to submit certified statement of insured 

shares and charges due to the National Credit Union Share Insurance 

Fund (NCUSIF), or inadvertent submission of false or misleading statement.

$4,596. 

(5) 12 U.S.C. 1782(d)(2)(B) ..... Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading statement.$45,946. 

(6) 12 U.S.C. 1782(d)(2)(C) ..... Tier 3 CMP for failure to submit a certified statement or the submission of a 

false or misleading statement done knowingly or with reckless disregard.

$2,297,385 or 1% of the total assets of the credit 

union, whichever is less. 

(7) 12 U.S.C. 1785(a)(3) .......... Non-compliance with insurance logo requirements ............................................ $157. 

(8) 12 U.S.C. 1785(e)(3) .......... Non-compliance with NCUA security requirements ........................................... $365. 

(9) 12 U.S.C. 1786(k)(2)(A) ..... Tier 1 CMP for violations of law, regulation, and other orders or agreements .. $12,567. 

(10) 12 U.S.C. 1786(k)(2)(B) ... Tier 2 CMP for violations of law, regulation, and other orders or agreements 

and for recklessly engaging in unsafe or unsound practices or breaches of 

fiduciary duty.

$62,829. 

(11) 12 U.S.C. 1786(k)(2)(C) ... Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural 

person).

$2,513,215. 

(12) 12 U.S.C. 1786(k)(2)(C) ... Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (insured 

credit union).

$2,513,215 or 1% of the total assets of the credit 

union, whichever is less. 

(13) 12 U.S.C. 

1786(w)(5)(A)(ii).

Non-compliance with senior examiner post-employment restrictions ................ $413,388. 

(14) 15 U.S.C. 1639e(k) .......... Non-compliance with appraisal independence requirements ............................. First violation: $14,435 

Subsequent violations: $28,866. 

(15) 42 U.S.C. 4012a(f)(5) ....... Non-compliance with flood insurance requirements ........................................... $2,730. 

(b) The adjusted amounts displayed in 

paragraph (a) of this section apply to 

civil monetary penalties that are 

assessed after the date the increase takes 

effect, including those whose associated 

violation or violations pre-dated the 

increase and occurred on or after 

November 2, 2015. 

[FR Doc. 2025–00737 Filed 1–14–25; 8:45 am] 

BILLING CODE 7535–01–P 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1026 

[Docket No. CFPB–2024–0032] 

Truth in Lending (Regulation Z); 

Consumer Credit Offered to Borrowers 

in Advance of Expected Receipt of 

Compensation for Work 

AGENCY: Consumer Financial Protection 

Bureau. 

ACTION: Advisory opinion rescinding 

previous advisory opinion. 

SUMMARY: The Consumer Financial 

Protection Bureau (CFPB) is issuing this 

advisory opinion to rescind an advisory 

opinion it issued in November 2020 that 

described how one particular type of 

‘‘earned wage’’ product does not involve 

the offering or extension of ‘‘credit’’ as 

that term is defined in the Truth in 

Lending Act and Regulation Z. 

DATES: This advisory opinion is 

applicable January 15, 2025. 

FOR FURTHER INFORMATION CONTACT: 

George Karithanom, Regulatory 

Implementation & Guidance Program 

Analyst, Office of Regulations, at 202– 

435–7700 or at: https://

reginquiries.consumerfinance.gov/. If 

you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Advisory Opinion 

A. Background 

One major source of demand for 

consumer credit is derived from the 

mismatch of when American workers 

receive compensation for their labor and 

when they incur expenses. While there 

have long been sources of credit for 

consumers to pay expenses in advance 

of receiving their compensation, there 

are a number of new offerings that seek 

to provide additional choices for 

consumers. 

Instead of being paid daily or upfront, 

American workers generally provide 

services before employers pay for those 

services some time later—typically on a 

biweekly or semi-monthly wage cycle.1

Employers have a strong incentive to 

delay payment, since these delays 

reduce working capital needs. Nearly 

three-quarters of non-farm payroll 

employees remain paid biweekly or 

even less frequently, and the remainder 

are generally paid their wages weekly. 

To address liquidity challenges, many 

consumers therefore turn to credit 

products, such as payday loans, 

personal installment loans, and credit 

cards. In recent years, American 

consumers have significantly expanded 

their use of products sometimes 

marketed as ‘‘earned wage access’’ or 

‘‘earned wage advance.’’ 2 As these 

paycheck advance products generally 

have features that make them subject to 

the CFPB’s jurisdiction, the CFPB has 

sought to understand these and other 

products, particularly those offered 

online, by engaging in ongoing 

monitoring of the market, including, for 

example, collecting and analyzing data, 

engaging with stakeholders (e.g., market 

participants, consumer groups, and 

States), tracking and studying market 

developments, and conducting market 

research, among other things. 

While many of these products have 

similarities to payday loans, there are 

important distinctions. The CFPB has 

found that there are two emerging 

models of earned wage products: 

employer-partnered and direct-toconsumer. 

For ‘‘employer-partnered’’ products, 

providers contract with employers to 

offer funds in amounts not exceeding 

accrued wages. Those funds are 

recovered via one or more payroll 

deductions, lowering the consumer’s 

paychecks accordingly, with other 

recourse options generally unavailable 

to the provider. In contrast, ‘‘direct-toconsumer’’ products provide funds to 

employees in amounts that are not as 

strictly limited by accrued wages. Some 

of these products limit advances to an 

amount estimated to be below accrued 

wages and do not consider other factors. 

Others consider estimated accrued 

wages as one of several factors when 

determining the amount to advance. 

Still others do not expressly state that 

estimated accrued wages are a factor 

considered despite being marketed as 

earned wage products. Regardless of the 

exact model, funds are generally 

recovered via automated withdrawal 


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