Sec. 722. Reform of Consumer Financial Civil Penalty Fund

388 words·~2 min read·/bill/115/hr/10/ih/section-722

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Section 1017(b) of the Consumer Financial Protection Act of 2010, as redesignated by section 713, is amended by redesignating paragraph

(2)as paragraph (3), and by inserting after paragraph

(1)the following new paragraph: The Agency shall establish and maintain a segregated account in the Civil Penalty Fund each time the Agency obtains a civil penalty against any person in any judicial or administrative action under Federal consumer financial laws. The Agency shall deposit each civil penalty collected into the segregated account established for such penalty under subparagraph (A). . Paragraph

(3)of section 1017(b) of such Act, as redesignated by subsection (a), is amended to read as follows: Not later than 60 days after the date of deposit of amounts in a segregated account in the Civil Penalty Fund, the Agency shall identify the class of victims of the violation of Federal consumer financial laws for which such amounts were collected and deposited under paragraph (2). The Agency, within 2 years after the date on which such class of victims is identified, shall locate and make payments from such amounts to each victim. The Agency shall deposit into the general fund of the Treasury any amounts remaining in a segregated account in the Civil Penalty Fund at the end of the 2-year period for payments to victims under subparagraph (A). If the Agency determines before the end of the 2-year period for payments to victims under subparagraph

(A)that such victims cannot be located or payments to such victims are otherwise not practicable, the Agency shall deposit into the general fund of the Treasury the amounts in the segregated account in the Civil Penalty Fund. . The amendments made by this section shall apply with respect to civil penalties collected after the date of enactment of this Act. With respect to amounts in the Consumer Financial Civil Penalty Fund on the date of enactment of this Act that were not allocated for consumer education and financial literacy programs on or before September 30, 2015, the Consumer Law Enforcement Agency shall separate such amounts into segregated accounts in accordance with, and for purposes of, section 1017(d) of the Consumer Financial Protection Act of 2010, as amended by this section. The date of deposit of such amounts shall be deemed to be the date of enactment of this Act.