2016 GNYADA Membership Directory

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

SUMMARY OF LAW

ADMINISTRATIVE PENALTIES

HOT TOPICS

Truth in Lending Consumer Leasing Act (Fed Regs M and Z)

Actual damages and twice the finance charge. Minimum of $100, Maximum of $1,000.

Drivers Privacy Protection Act

$2,500 liquidated damages per violation + punitive damages + under federal law attorney’s fees.

Equal Credit Opportunity Act

FTC may refer a violation to the U.S. Dept of Justice to bring a civil action for actual and punitive damages and injunctive relief.

(Fed Reg B)

Fair Credit Reporting Act (includes Red Flags Rule, privacy disclosures and Risk-based Pricing Rule liability)

$3,500 per violation. Any violation also violates FTC Act § 5 with potential for damages of up to $16,000 per violation.

Adverse Action Notices (see ECOA and FCRA)

FCRA - $3,500 per violation. $16,000 per violation if FTC enters into an enforcement decree.

OFAC

Up to $1 million per violation.

UDAP Laws

FTC Act – up to $16,000 per violation. State laws vary. Recent state consent decrees on dealer advertising have been in excess of $100,000. The CFPB can recover damages of up to $1 million per day against independent and buy-here-pay-here dealers.

(FTC Act § 5 and State laws)

IRS Form 8300 reporting of cash payments in excess of $10,000

$100 for failing to file and correct Form 8300 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. Same penalties for failure to furnish notice to persons on whom Form 8300s were filed except that the intentional disregard penalty is $250,000 or $200,000 for a business with gross receipts not greater than $5 million.

2016 MEMBERSHIP DIRECTORY 97

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