When we take an enforcement action against a person or company for violating a federal consumer financial protection law, the person or company may have to pay a civil penalty. When we collect a civil penalty, we put that money into the Civil Penalty Fund. The Fund was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For more information on the Civil Penalty Fund, check out our FAQs.
What happens with the funds in the Civil Penalty Fund?
We make payments to people who were harmed by the illegal actions that gave rise to civil penalties and who aren’t expected to otherwise get full compensation for the kinds of harm that the Fund covers. If we can’t locate the victims or it’s otherwise not feasible to pay them, we may use money in the Fund on consumer education and financial literacy programs designed to help consumers. We will continue to provide information on the Fund in our semi-annual reports and financial reports to Congress, as well as in our quarterly financial updates. Here is a link to the Civil Penalty Fund allocation schedule.
What rules govern the fund?
Read the final Civil Penalty Fund rule, which governs the Fund and became effective on May 7, 2013.
Allocations to victim classes
On May 30, 2013, the Bureau made its first allocation from the Civil Penalty Fund. The Bureau allocated funds to victims from the Payday Loan Debt Solution, Inc. case and victims from the Gordon et al. case.
For information related to victim compensation, please click on the appropriate link below: