2020Directory_FNL_FlippingBook

• If unable to obtain compliance, the FTC may refer a violation to the U.S. Department of Justice (DOJ). The DOJ may pursue a civil action where creditors are engaged in a pattern or practice of violations, and obtain such relief as may be appropriate, including to bring a civil action for actual and punitive damages and injunctive relief. • Individuals may seek recovery individually or as a class for actual damages for certain violations of ECOA. In addition, punitive damages are available, but limited to $10,000, but in a class action total recovery must not exceed the lesser of $500,000 or 1% of dealer’s net worth. Equitable and declaratory relief are also available. In addition, costs and reasonable attorney’s fees can be recovered by individuals or a class. 15 U.S.C. § 1691e; 12 C.F.R. § 202.16. Fair Credit Reporting Act (FCRA): Including but not limited to Red Flags Rule, Disposal Rule, and Risk-Based Pricing Rule • $3,993 per violation for knowing violations, which constitutes a pattern or practice of violations alleged by the FTC. 5 U.S.C. § 1681s(a)(2)(A); 16 C.F.R. § 1.98. Any violation also violates FTC Act § 5 (Unfair, Deceptive Acts or Practices), with potential for damages of $41,484 per violation if FTC enters into an enforcement decree. 16 C.F.R. § 1.98. • Private right of action for certain provisions (e.g., permissible purpose, adverse action). • For negligent violations: actual damages and the costs of the action together with reasonable attorney’s fees. 15 U.S.C. § 1681o. • For willful violations: actual damages or statutory damages of not less than $100 and not more than $1,000 per violation, and punitive damage liability with no cap and costs of the action together with reasonable attorney’s fees. 15 U.S.C. § 1681n. Adverse Action Notices • See ECOA and FCRA. OFAC • Civil penalties (per violation) – 31 C.F.R. § 501, App. A: • TradingWith the Enemy Act: up to $89,170 . • International Economic Powers Act: up to the greater of $302,584 or twice the amount of the underlying transaction. • Anti-terrorism and Effective Death Penalty Act: up to the greater of $79,874 or twice the amount of which a financial institution was required to retain possession or control. • Foreign Narcotics Kingpin Designation Act: up to $1,503,470 . • Clean Diamond Trade Act: up to $13,669. • Criminal penalties: • TradingWith the Enemy Act: Fines up to $250,000 for individuals and $1,000,000 for organizations or twice the pecuniary gain or loss from the violation 10 years imprisonment. 31 C.F.R. § 501.701(b).

2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE HOT TOPICS

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