2020Directory_FNL_FlippingBook

NOTE: The following is a quick reference to potential federal penalties for certain key tasks referenced in the Compliance Guide to be performed by your dealership. It is not intended as an exhaustive or official analysis of all penalties that may be assessed for a violation. You should consult your attorney with any questions you may have for your particular situation. Please also note that some of the penalties identified below are subject to periodic adjustment, and the amounts reflected below are indicative of a particular period in time only (December 2019), and may be subject to change. Also note that most states have their own laws in connection with the federal laws outlined below, with additional penalties that may be imposed, as well as other causes of action that may be brought by consumers. You should consult your counsel for advice on the impact of state laws on your business practices. PENALTIES FOR VIOLATION OF FEDERAL CONSUMER CREDIT LAWS AND REGULATIONS

2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE HOT TOPICS

Compliance Obligation

Federal Laws that Apply

Violations / Penalties

Privacy Notices

Gramm-Leach-Bliley Act (GLB), Federal Trade Commission (FTC) Privacy

• The FTC enforces the Privacy Rule and GLB. It may seek injunctive relief, with potential for damages of up to $42,530 per violation if FTC enters into an enforcement decree. 16 C.F.R. § 1.98 • FCRA violations (FTC): $3,993 for a knowing violation, which constitutes a pattern or practice of violations. 15 U.S.C. § 1681s(a)(2)(A); 16 C.F.R. § 1.98. Any violation of the FCRA also violates FTC Act § 5, with potential for damages of up to $42,530 per violation if FTC enters into an enforcement decree. 15 U.S.C. § 1681s(a)(1); 16 C.F.R. § 1.98. • FCRA violations (Private right of action). For negligent violations under private action: actual damages and the costs of the action together with reasonable attorney’s fees. 15 U.S.C. § 1681o. For willful violations under private action: actual damages or statutory damages of not less than $100 and not more than $1,000 per violation, punitive damage liability with no cap, and costs of the action together with reasonable attorney’s fees. 15 U.S.C. § 1681n. • ECOA violations (FTC): The FTC can enforce violation of ECOA as a violation of the FTC Act, with potential for damages of up to $42,530 per violation if the FTC enters into an enforcement decree. 15 U.S.C. § 1691c(c); 16 C.F.R. § 1.98.

Rule, and Fair Credit Reporting Act (FCRA)

Credit Application

Equal Credit Opportunity Act (ECOA), Regulation B, and FCRA

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