2016 GNYADA Membership Directory

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

SUMMARY OF LAW

ADMINISTRATIVE PENALTIES

HOT TOPICS

Used Car Rule

Up to $16,000 per violation in a proceeding brought by the FTC. In addition, possible State AG claims under UDAP laws and Motor Vehicle sales laws. The Department of 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 FTC fine of $16,000 per day. FTC has entered into 20-year consent decrees requiring biannual security firm audits and requirements for updating dealer security systems.

Federal Odometer Act

FTC Safeguards and Disposal Rules

FTC Telemarketing Rule

Up to $16,000 for each violation plus redress to injured consumers. For dealers, subject to CFPB regulation $5,000 to $1 million for each day a violation continues.

and FCC Rulings

Magnuson-Moss Warranty Act

May constitute an FTC § 5 Act UDAP.

Telemarketing Consumer Protection Act of 1991 (TCPA) and FCC Regulations prohibiting use of auto dialers or text messages to cell phones or use of pre-recorded messages to cell phones or land lines without the prior written consent of the consumer

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* The above laws and regulations have provisions for assessing the wrongdoer plaintiffs’attorneys’fees and costs or costs of regulatory investigation along with civil or criminal penalties. In an individual or 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