What is the maximum penalty for violating Dodd-Frank Tier Three, Federal Consumer Financial Laws?

The maximum penalty for violating Dodd-Frank Tier Three, which encompasses various Federal Consumer Financial Laws, is set at $1,127,779 per violation. This specific figure is adjusted annually based on inflation and is designed to reflect the severity of the violation while ensuring that penalties remain proportionate to the harm caused to consumers. This penalty structure also aims to deter future violations by establishing a significant financial consequence for non-compliance with consumer protection laws. Understanding these penalty structures is crucial for professionals in the financial services industry, as they highlight the importance of adherence to regulations established under the Dodd-Frank Act to protect consumer rights and promote ethical lending practices.