2015 GNYADA MEMBERSHIP DIRECTORY

Penalties for Violation of Federal Consumer Credit Laws and Regulations Continued…

HOT TOPICS 2015 GNYADA Membership Directory 79 Summary of Law FTC Telemarketing Rule Magnuson-Moss Warranty Act prohibiting use of autodialers or text

Administrative

Civil Lawsuits

Criminal Penalties

Penalties

Up to $16,000 for each violation plus redress to

Individual call recipients and

State AGs can obtain up to injured consumers. For dealers, $500 per violation, the subject to CFPB regulation amount trebled for willful or $5,000 to $1 million for each knowing violations. day a violation continues.

May constitute an FTC § 5

Consumers can recover

UDAP violation for which the damages from the breach. FTC can assess penalities of up This includes remedies to $16,000 per violation.

already available under state law, such as recovery of the purchase price, market price of a replacement, loss in value due to the problem, recovery of other costs, and statutory penalties, if any.“Other legal and equitable relief,”court costs and attorneys’fees are also recoverable. Breach of written warranty, breach of implied warranty, breach of service contract and failure to comply with obligations are the four causes of action directly referenced in the Act.

Telephone Consumer Protection Act of 1991

The FCC has authority to bring $500 - $1,500 per call or

enforcement actions for

text message sent to any wireless number you can’t prove you have prior written consent to call or

(TCPA) and FCC Regulations damages and has done so

repeatedly, assessing penalties greater than $1

messages to cell phones or use of pre-recorded messages to cell phones

million. States also have laws text. Class action liability is

on telemarketing allowing

unlimited.

Attorneys General to sue for or land lines without the administrative penalties. prior written consent of the consumer

*The above laws and regulations have provisions for assessing the wrongdoer plaintiffs’attorney’s fees and costs or costs of regulatory investigation along with civil or criminal penalties. In a class action, the plaintiffs’attorney’s fees can easily be six figures or more depending on the length and complexity of the case.

Information provided Courtesy of Dealertrack Technologies 516.547.2242; www.dealertrack.com