Agency Proposes Redress System for Fraud Victims

June 12, 2013
Courthouse News Service  
consumer financial protection bureau news

The Consumer Financial Protection Bureau (CFPB) has proposed the creation of a records system to track and manage payments to victims of financial fraud through the Civil Penalty Fund created by the Dodd-Frank Act. The fund will distribute money recovered from banks and other entities found in violation of federal consumer financial laws. According to the CFPB's June 11 notice, the system will enable the agency to track the collection, allocation, and distribution of money in the fund; identify victims eligible for payments; determine the amount of the payments; maintain accounting and financial information related to the payments; and submit reports of taxable income to federal, state, and local taxing officials in compliance with other reporting requirements. The system is slated for implementation on July 22.
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