WASHINGTON — The Consumer Financial Protection Bureau issued a rule Friday attempting to clarify how it would use its Civil Penalty Fund, which holds money it collects as a result of fines against financial companies.
The agency's final rule is meant to address ongoing concerns from lawmakers and the industry on how exactly it would distribute the Funds. The Dodd-Frank Act required the CFPB to form the fund from money penalties against financial companies and use it to compensate victims of fraud and support consumer education and financial literacy programs. But there was little detail given in how the agency would manage or distribute the proceeds. The CFPB is hoping the rule clears the air in who will be compensated, how and when.