[Federal Register Volume 78, Number 112 (Tuesday, June 11, 2013)]
[Notices]
[Pages 34991-34993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13744]


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BUREAU OF CONSUMER FINANCIAL PROTECTION


Privacy Act of 1974, as Amended

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice of Proposed Privacy Act System of Records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Bureau of Consumer Financial Protection, hereinto referred to as the 
Consumer Financial Protection Bureau (CFPB or the Bureau), gives notice 
of the establishment of a Privacy Act System of Records.

DATES: Comments must be received no later than July 11, 2013. The new 
system of records will be effective July 22, 2013, unless the comments 
received result in a contrary determination. ADDRESSES: You may submit 
comments by any of the following methods:
     Electronic: [email protected].
     Mail/Hand Delivery/Courier: Claire Stapleton, Chief 
Privacy Officer, Consumer Financial Protection Bureau, 1700 G Street 
NW., Washington, DC 20552.
    Comments will be available for public inspection and copying at 
1700 G Street NW., Washington, DC 20552 on official business days 
between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an 
appointment to inspect comments by telephoning (202) 435-7220. All 
comments, including attachments and other supporting materials, will 
become part of the public record and subject to public disclosure. You 
should submit only information that you wish to make available 
publicly.

FOR FURTHER INFORMATION CONTACT: Claire Stapleton, Chief Privacy 
Officer,

[[Page 34992]]

Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 
20552, (202) 435-7220.

SUPPLEMENTARY INFORMATION: The Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Act), Public Law 111-203, Title X, established 
the CFPB to administer and enforce Federal consumer financial laws.
    Section 1017(d) of the Act establishes a ``Consumer Financial Civil 
Penalty Fund'' (Civil Penalty Fund). Pursuant to section 1017(d)(1) of 
the Act, the CFPB will deposit into the Civil Penalty Fund any civil 
penalties it collects from any person in any judicial or administrative 
action taken by the Bureau under Federal consumer financial laws. The 
funds in the Civil Penalty Fund may be used ``for payments to the 
victims of activities for which civil penalties have been imposed under 
the Federal consumer financial laws.'' \1\ The Bureau outlined how it 
will use money in the Civil Penalty Fund in the Consumer Financial 
Civil Penalty Fund Rule, 12 CFR Part 1075.
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    \1\ 12 U.S.C. 5497(d)(2).
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    In addition, pursuant to section 1055(a) of the Act, the CFPB may 
obtain various types of monetary relief--including restitution, 
refunds, and damages--in judicial and administrative proceedings. 
Collectively, these forms of relief are referred to as ``redress.'' In 
some cases, an order will require a defendant to pay redress to the 
Bureau for the Bureau to distribute to the victims of the defendant's 
activities. This is known as ``Bureau-Administered Redress.''
    The new system of records described in this notice, ``CFPB.025--
Civil Penalty Fund and Bureau-Administered Redress Program Records'' 
will enable the CFPB to manage the distributions of Civil Penalty Fund 
and redress monies to consumers, including: (1) Tracking the 
collection, allocation, and distribution of funds in the Civil Penalty 
Fund and redress monies; (2) identifying and locating victims who may 
receive payments from the Civil Penalty Fund and/or redress payments; 
(3) determining the amounts of the Civil Penalty Fund payments and 
redress payments that the Bureau will make to victims; (4) maintaining 
accounting and financial information associated with such payments; and 
(5) developing reports to applicable federal, state, and local taxing 
officials of taxable income, and reports necessary to meet other 
reporting requirements. The CFPB will maintain control over the records 
covered by this notice.
    The report of the new system of records has been submitted to the 
Committee on Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Office of Management and Budget, 
pursuant to Appendix I to OMB Circular A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
November 30, 2000,\2\ and the Privacy Act, 5 U.S.C. 552a(r).
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    \2\ Although the CFPB, under 12 U.S.C. 5497(a)(4)(E), is not 
legally required to follow OMB-issued guidance, it voluntarily 
follows OMB privacy-related guidance as a best practice and to 
facilitate cooperation and collaboration with other agencies.
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    The system of records entitled ``CFPB.0XX--Civil Penalty Fund and 
Bureau-Administered Redress Program Records'' is published in its 
entirety below.

    Dated: May 28, 2013.
Claire Stapleton,
Chief Privacy Officer, Bureau of Consumer Financial Protection.
CFPB.025

SYSTEM NAME:
    Civil Penalty Fund and Bureau-Administered Redress Program Records.

SYSTEM LOCATION:
    Consumer Financial Protection Bureau, 1700 G Street NW., 
Washington, DC 20552.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals covered by this system include, without limitation: (1) 
Individuals identified as victims or potential victims who may receive 
payments from the Civil Penalty Fund or through Bureau-Administered 
Redress, including but not limited to current, former, and prospective 
consumers who are or have been customers or prospective customers of 
entities ordered to pay a civil penalty or redress to the Bureau as a 
result of a Bureau enforcement action; (2) individuals associated with 
entities and individuals that have been ordered to pay a civil penalty 
or redress to the Bureau as a result of a Bureau enforcement action; 
and (3) others, including CFPB employees, with information relevant to, 
or otherwise associated with, a Bureau enforcement action that has 
resulted in an order to pay civil penalties or redress to the Bureau.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records in this system may contain identifiable information about 
individuals including, without limitation: (1) Name, address, email 
address, phone number and other contact information; (2) Social 
Security number (SSN), age, date of birth, marital status, records of 
consumer financial transactions, financial account information, and 
internal identification number assigned to identified victims; (3) 
accounting and financial information relevant to making payment; and 
(4) accounting and financial information relevant to determining when 
and in what amounts victims have claimed funds. Additionally, non-
identifying information in the system may include the dates the Bureau 
authorized, instituted, settled, and/or otherwise obtained a final 
judgment in a judicial or administrative action; an internal case 
tracking number; the date the judicial or administrative order was 
entered; the date the judicial or administrative order became a ``final 
order'' as defined by the Consumer Financial Civil Penalty Fund Rule, 
12 CFR Part 1075; the amount of civil penalties or redress ordered; the 
due date for payments of civil penalties and redress funds; the date 
and amount of payments made; the status of debt collection efforts; and 
the balances of the Bureau's accounts as payments are made.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Pub. L. 111-203, Title X, Sections 1017(d), 1055(a), codified at 12 
U.S.C. 5497(d), 5565(a).

PURPOSE(S):
    The system will enable the CFPB to manage the distribution of Civil 
Penalty Fund and redress monies to consumers, including: (1) Tracking 
the collection, allocation, and distribution of funds in the Civil 
Penalty Fund and redress monies; (2) identifying and locating victims 
who may receive payments from the Civil Penalty Fund and/or redress 
payments; (3) determining the amounts of the Civil Penalty Fund 
payments and redress payments that the Bureau will make to victims; (4) 
maintaining accounting and financial information associated with such 
payments; and (5) developing reports to applicable federal, state, and 
local taxing officials of taxable income, and reports necessary to meet 
other reporting requirements.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    These records may be disclosed, consistent with the CFPB Disclosure 
of Records and Information Rules, promulgated at 12 CFR 1070 et seq., 
to:
    (1) Appropriate agencies, entities, and persons when: (a) The CFPB 
suspects or

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has confirmed that the security or confidentiality of information in 
the system of records has been compromised; (b) the CFPB has determined 
that, as a result of the suspected or confirmed compromise, there is a 
risk of harm to economic or property interests, identity theft or 
fraud, or harm to the security or integrity of this system or other 
systems or programs (whether maintained by the CFPB or another agency 
or entity) that rely upon the compromised information; and (c) the 
disclosure made to such agencies, entities, and persons is reasonably 
necessary to assist in connection with the CFPB's efforts to respond to 
the suspected or confirmed compromise and prevent, minimize, or remedy 
such harm;
    (2) Another federal or state agency to (a) permit a decision as to 
access, amendment or correction of records to be made in consultation 
with or by that agency, or (b) verify the identity of an individual or 
the accuracy of information submitted by an individual who has 
requested access to or amendment or correction of records;
    (3) To the Office of the President in response to an inquiry from 
that office made at the request of the subject of a record or a third 
party on that person's behalf;
    (4) Congressional offices in response to an inquiry made at the 
request of the individual to whom the record pertains;
    (5) Contractors, agents, or other authorized individuals performing 
work on a contract, service, cooperative agreement, job, or other 
activity on behalf of the CFPB or Federal Government and who have a 
need to access the information in the performance of their duties or 
activities;
    (6) The U.S. Department of Justice (DOJ) for its use in providing 
legal advice to the CFPB or in representing the CFPB in a proceeding 
before a court, adjudicative body, or other administrative body, where 
the use of such information by the DOJ is deemed by the CFPB to be 
relevant and necessary to the advice or proceeding, and such proceeding 
names as a party in interest:
    (a) The CFPB;
    (b) Any employee of the CFPB in his or her official capacity;
    (c) Any employee of the CFPB in his or her individual capacity 
where DOJ has agreed to represent the employee; or
    (d) The United States, where the CFPB determines that litigation is 
likely to affect the CFPB or any of its components;
    (7) Appropriate federal, state, local, foreign, tribal, or self-
regulatory organizations or agencies responsible for investigating, 
prosecuting, enforcing, implementing, issuing, or carrying out a 
statute, rule, regulation, order, policy, or license if the information 
may be relevant to a potential violation of civil or criminal law, 
rule, regulation, order, policy or license;
    (8) These records may be disclosed to a court, magistrate, or 
administrative tribunal in the course of an administrative proceeding 
or judicial proceeding, including disclosures to opposing counsel or 
witnesses (including expert witnesses) in the course of discovery or 
other pre-hearing exchanges of information, litigation, or settlement 
negotiations, where relevant or potentially relevant to a proceeding, 
or in connection with criminal law proceedings;
    (9) An entity or person that is the subject of a judicial or 
administrative action resulting in an order to pay civil penalties or 
redress to the Bureau, and the attorney or non-attorney representative 
for that entity or person;
    (10) To the Treasury Department, Internal Revenue Service, or other 
governmental entities, including state and local taxing officials, to 
comply with tax-reporting obligations;
    (11) A financial institution holding Civil Penalty Fund or redress 
monies on behalf of the Bureau in order to issue payments to identified 
victims;
    (12) The Office of Inspector General, the Government Accountability 
Office, or other governmental entities as necessary to comply with 
reporting obligations regarding the disbursement of Civil Penalty Fund 
or redress monies; and
    (13) The Federal Deposit Insurance Corporation (FDIC) in order to 
make claims under the FDIC's deposit insurance claims process, in the 
event a financial institution holding Civil Penalty Fund or redress 
monies on behalf of the Bureau fails.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM: STORAGE:
    Paper and electronic records.

RETRIEVABILITY:
    Records are retrievable by a variety of fields including, but not 
limited to, individual name, address, financial account number, 
internal identification number assigned to identified victims, or by 
some combination thereof.

SAFEGUARDS:
    Access to electronic records is restricted to authorized personnel 
who have been issued non-transferrable access codes and passwords. 
Other records are maintained in locked file cabinets or rooms with 
access limited to those personnel whose official duties require access.

RETENTION AND DISPOSAL:
    The CFPB will maintain electronic and paper records indefinitely 
until the National Archives and Records Administration (NARA) approves 
the CFPB's records disposition schedule.

SYSTEM MANAGER(S) AND ADDRESS:
    Consumer Financial Protection Bureau, Chief Financial Officer, 1700 
G Street NW., Washington, DC 20552.

NOTIFICATION PROCEDURE:
    Individuals seeking notification and access to any record contained 
in this system of records, or seeking to contest its content, may 
inquire in writing in accordance with instructions appearing in Title 
12, Chapter 10 of the CFR, Part 1070, ``Disclosure of Records and 
Information.'' Address such requests to: Chief Privacy Officer, Bureau 
of Consumer Financial Protection, 1700 G Street NW., Washington, DC 
20552.

RECORD ACCESS PROCEDURES:
    See ``Notification Procedures'' above.

CONTESTING RECORD PROCEDURES:
    See ``Notification Procedures'' above.

RECORD SOURCE CATEGORIES:
    Information in this system is provided by (1) individuals 
identified as victims or potential victims who may receive payments 
from the Civil Penalty Fund or through Bureau-Administered Redress, 
including but not limited to current, former, and prospective consumers 
who are or have been customers or prospective customers of entities 
ordered to pay a civil penalty or redress to the Bureau as a result of 
a Bureau enforcement action; (2) entities and individuals associated 
with entities and individuals that have been ordered to pay a civil 
penalty or redress to the Bureau as a result of a Bureau enforcement 
action; and (3) others, including CFPB employees, with information 
relevant to, or otherwise associated with, a Bureau enforcement action 
that has resulted in an order to pay civil penalties or redress to the 
Bureau.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.
[FR Doc. 2013-13744 Filed 6-10-13; 8:45 am]
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