Penalties for credit unions just got more expensive, by law

The US credit union regulator just increased the maximum fines it can issue for rule violations. This means credit unions will pay more for the same infractions, because a 2015 law requires federal agencies to adjust penalties for inflation every year.

Federal agencies must increase their civil penalties each year to keep up with inflation. This is not a policy choice, but a legal requirement. It means the cost of breaking federal rules goes up automatically, even if the rules themselves do not change. This ensures that fines remain a deterrent over time, rather than becoming less effective as money loses value.