CFPB Redirects Penalty Funds Straight to Victims Only
Published Date: 6/18/2025
Proposed Rule
Summary
The Consumer Financial Protection Bureau is updating a rule about a special fund that helps people harmed by financial wrongdoings. Now, the fund will focus only on paying victims directly, dropping the part about using money for education programs. This change means more cash goes straight to the people affected, starting once the new rule is in place.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Civil Penalty Fund to Pay Victims Only
The CFPB proposes to change the Consumer Financial Civil Penalty Fund so it is used only to make payments to victims of financial wrongdoing. This means more money will go directly to people harmed by those violations starting once the new rule is in place.
Education Funding Removed from Civil Fund
The CFPB proposes to remove references allowing the Civil Penalty Fund to be used for consumer education and financial literacy programs. Organizations and consumers who benefited from that funding may lose that source of support once the new rule is in place.
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