2015 GNYADA MEMBERSHIP DIRECTORY

HOT TOPICS 2015 GNYADA Membership Directory

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

Summary

Administrative

Civil Lawsuits

Criminal Penalties

of Law

Penalties

IRS Form 8300 reporting of cash payments in excess

$100 for failing to file and correct Form within 30 days with an aggregate annual limit of $1.5 million. For businesses with gross receipts not greater than $5 million, the aggregate is $500,000. Additional intentional disregard penalty for failing to file and correct is the greater of $25,000 or the amount of cash received. Penalties for failure to furnish notice to persons on whom Form 8300s were filed by January 31 of the following year is $100 per violation. The aggregate annual limitation is $1,500,000. In the case of a business having gross receipts not more than $5 million, the aggregate annual limitation is $500,000. Lesser penalties apply if the failure to file an IRS 8300 is corrected within 30 days.

None

of $10,000

Used Car Rule

Up to $16,000 per violation in a Possible UDAP claims or fraud Varies by state. proceeding brought by the FTC. claims under state law.

In addition, possible State AG claims under UDAP laws and Motor Vehicle Sales laws.

Federal

The Department of

Civil actions can collect the Criminal fines or 3 years

Odometer Act

Transportation can impose penalties of up to $2,000 per violation up to a maximum amount for a series of violations of $100,000. Potential fine of $16,000 per day. FTC has entered into 20-year consent decrees requiring biannual security

greater of three times the actual damages or $10,000.

in prison, or both.

FTC Safeguards and Disposal Rules

Possible UDAP and breach of contract and negligence claims under state laws.

Courts have permitted firm audits and requirements lawsuits against retailers who for updating dealer security incurred security breaches systems. compromising customer information.

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