2015 GNYADA MEMBERSHIP DIRECTORY

PENALTIES FOR VIOLATIONS

Penalties for Violation of Federal Consumer Credit Laws and Regulations

HOT TOPICS 2015 GNYADA Membership Directory 77 Summary of Law Truth in Lending Consumer Leasing Act (Fed Regs M and Z) Drivers Privacy Protection Act Equal Credit Opportunity Act (Fed Reg B) Liability) Adverse Action Notices (see ECOA and FCRA) OFAC UDAP Laws (FTC Act § 6 and State laws) Risk-based Pricing Rule

Administrative

Civil Lawsuits

Criminal Penalties

Penalties

Actual damages and twice the Class action damages of up Willful and knowing

finance charge Minimum of $100, Maximum of $1000. $2,500 liquidated damages per violation + punitive damages + under federal law attorney’s fees. FTC may refer a violation to the U.S.Dept. of Justice to bring a civil action for

to the lower of $500.000

violations - fine of $6,000

or 1% of creditor’s net worth. 1 year in prison or both.

Criminal penalties under federal law.

Actual damages and punitive damages to to exceed

$10,000 per violation. Class actual and punitive damages action damages of up to and injunctive relief. the lesser of $500,000 or 1% of dealer’s net worth.

Fair Credit Reporting Act $3,500 per violation. (includes Red Flags Rule Any violation also violates privacy disclosures, and FTC Act § 6 with potential

Private right of action for certain provisions (e.g, Affiliate Marketing Rule). Damages up to $1,000 per violation and unlimited punitive damage liability. ECOA – Actual damages + punitive damages up to $10,000 per violation, not to exceed the lesser of $500,000 or 1% of dealer’s net worth. Unlimited punitive damages under FCRA .

for damages of up to $16,000 per violation.

FCRA - $3,500 per violation. $16,000 per violation if

FTC enters into an enforcement decree.

Up to $1 million per

Up to $10 million + 30 years imprisonment.

violation.

FTC Act – up to $16,000 per violation. State laws vary for actual, statutory and Recent state consent decrees punitive damages are on dealer advertising have permitted under most been in excess of $100,000. state UDAP laws. Some The CFPB can recover damages states allow recovery of of up to $1 million per day treble damages and for knowing or intentional class actions. violations against independent and buy-here- pay-here dealers. Private causes of action

Varies by state.

*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.