2020Directory_FNL_FlippingBook

2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE HOT TOPICS

Compliance Obligation

Federal Laws that Apply

Violations / Penalties

Adverse Action Notices Continued...

ECOA (including Regulation B) and FCRA Continued...

if FTC enters into an enforcement decree. Potential private right of action exists. For negligent violations under private action: actual damages. For knowing violations under private action: actual damages or statutory damages up to $3,993 per violation, and punitive damage liability with no cap. 15 U.S.C. § 1681s(a)(1); 16 C.F.R. § 1.98. • Regulator may adjust the account of the person to whom credit was extended so that such person is not required to pay a finance charge in excess of the charge disclosed, or the dollar equivalent of the annual percentage rate disclosed, whichever is lower. 15 U.S.C. § 1607(e). • Private right of action (for certain violations): • Court costs. • Actual damages. • For individual actions: twice the amount of the finance charge Class action damages of up to the lower of $1,000,000 or 1%of creditor’s net worth. 15 U.S.C. § 1640. • Willful and knowing violations – fine of $5,000, one-year imprisonment, or both. 15 U.S.C. § 1611(1). • Assignees liable to the extent the violation is apparent on the face of the disclosure statement. 15 U.S.C. § 1641. Regulator may adjust the account of the person to whom credit was extended so that such person is not required to pay a finance charge in excess of the charge disclosed, or the dollar equivalent of the annual percentage rate disclosed, whichever is lower. 15 U.S.C. § 1607(e). Private Right of Action: • Court costs. • Actual damages.

Credit Disclosures in RISC

Truth In Lending Act (TILA) and Regulation Z

Disclosures in Lease Agreement

Consumer Leasing Act (CLA) and Regulation M

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