2025-23612NoticeWallet

CFPB Updates Privacy for Consumer Penalty Fund Records

Published Date: 12/22/2025

Notice

Summary

The Consumer Financial Protection Bureau is updating how it handles records for the Civil Penalty Fund and redress payments to consumers. This change affects anyone involved in these programs and aims to improve how your information is managed. Comments on the update are open until January 21, 2026, and the new system kicks in right after unless changes are needed.

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Records Shared with Treasury's Do Not Pay

If you are identified as a victim or potential victim who may receive Civil Penalty Fund or Bureau-administered redress payments, the CFPB may disclose your records to the U.S. Department of the Treasury to review payment and award eligibility through the Do Not Pay Working System. This routine use is effective January 21, 2026 and is intended to help identify, prevent, or recoup improper payments.

Tax Reporting of Redress Payments

The CFPB will use records to develop reports to Federal, State, and local taxing officials about taxable income from Civil Penalty Fund and redress payments. If you receive such a payment, your information may be reported to tax authorities for tax-reporting purposes.

Sharing Account Data to Issue Payments

The CFPB may disclose records to financial institutions that hold Civil Penalty Fund or redress monies so those institutions can issue payments to identified victims. If you are an identified victim, your contact and account information may be shared for the purpose of issuing your payment.

FDIC Claims If Paying Bank Fails

If a financial institution holding Civil Penalty Fund or redress monies fails, the CFPB may disclose records to the Federal Deposit Insurance Corporation (FDIC) to make claims under the FDIC's deposit insurance claims process. This disclosure supports recovery or protection of funds that would be used to pay identified victims.

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Key Dates

Published Date
Comments Due
12/22/2025
1/21/2026

Department and Agencies

Department
Independent Agency
Agency
Consumer Financial Protection Bureau
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