AFSA Comments on the CFPB Civil Penalty Fund
On July 18, 2025, AFSA submitted a comment letter regarding the CFPB’s plan to make changes to how it uses money collected from fines imposed on financial institutions. Previously, the money collected in fines was placed in the Civil Penalty Fund. From there, the money might go to making consumer’s whole or be allocated to consumer education and financial literacy. The CFPB has proposed to change this to direct 100% of money in the Civil Penalty Fund to go back to consumers affected.
AFSA agrees that money collected for alleged violations of law should be provided to affected consumers. The CFPB has access to ample funding from the Federal Reserve as well as the ability to impose fines on companies who deny breaking the law. Letting the CFPB decide how to use funds in the Civil Penalty fund perpetuates a culture of limited accountability and oversight in the Bureau.
July 23rd, 2025
