What penalty can the Consumer Financial Protection Bureau (CFPB) impose for violation of Regulation Z?

The correct answer highlights the enforcement powers vested in the Consumer Financial Protection Bureau (CFPB) concerning violations of Regulation Z, which involves the Truth in Lending Act. The CFPB has the authority to take robust actions against creditors who fail to comply with the regulations designed to protect consumers, including imposing fines. This can serve as a deterrent to non-compliance and encourages financial institutions to adhere to fair lending practices.

Additionally, the CFPB can enforce corrective actions, meaning they can require institutions to take steps to rectify any violations and improve their practices moving forward. Issuing other penalties can involve a range of consequences intended to ensure compliance and safeguard consumer rights.

The other options do not accurately reflect the authority of the CFPB. Ordering a credit freeze or mandating training do not fall under the types of penalties that the CFPB is authorized to enforce under Regulation Z. Providing a public commendation for compliance is not a penalty but rather a recognition, which is not relevant in this context of enforcement. Thus, the response accurately captures the scope of the CFPB's capabilities in addressing violations of Regulation Z.