2020Directory_FNL_FlippingBook

Compliance Obligation

Federal Laws that Apply

Violations / Penalties

Disclosures in Lease Agreement Continued...

Consumer Leasing Act (CLA) and Regulation M Continued...

• Individual actions:

• 25% of total monthly payments. • Minimum of $200, Maximum of $2,000. • Class action damages of up to the lower of $1,000,000 or 1% of creditor’s net worth. • 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. • Generally, for failure to timely file a complete and accurate Form 8300 or to furnish notice to persons on whom Form 8300s were filed, the penalty is $270 per report with an aggregate annual limit of $1,091,500 for businesses with gross receipts not exceeding $5 million and $3,275,500 for businesses with gross receipts exceeding $5 million. Revenue Procedure 2018-18. • For failure to file due to intentional disregard, for each filing the penalty is the greater of (1) $27,290 or (2) the amount of cash received in the transaction not to exceed $109,000. For failure to furnish notice to persons on whom Form 8300s were filed due to intentional disregard, the penalty is $540 per failure or, if greater, 10% of the aggregate amounts of the items required to be reported. Revenue Procedure 2018-18. • Up to $42,530 per violation. 16 C.F.R. § 455.1; 16 C.F.R. § 1.98. • Possible state AG claims under UDAP and motor vehicle sales laws. • Possible UDAP or fraud claims under state law. Effective for forms required to be filed on and after January 1, 2019:

HOT TOPICS

Internal Revenue Code

Cash Deals — IRS Form 8300 filing

FTC Used Car Rule

Used Car Rule Buyers Notice

223 2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE