2020Directory_FNL_FlippingBook

2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE HOT TOPICS

Compliance Obligation

Federal Laws that Apply

Violations / Penalties

Unfair or Deceptive

FTC Act Consumer Financial

• Up to $42,530 per violation. 15 U.S.C. § 45(m)(1). • The CFPB can assess penalties in excess of $1,156,242 per day for knowing violations against independent and buy-here-pay-here dealers for violations.

Practices (UDAPs) Unfair, Deceptive, Abusive Acts or Practices (UDAAP)

Protection Act 12 U.S.C. § 5531; 12 U.S.C. § 5565(c) (2)(C); 12 C.F.R. § 1083.1

Military Borrowers

Military Lending Act (MLA)

• Private right of action for: actual damages of not less than $500 per violation, punitive damages, equitable or declaratory relief, reasonable attorney’s fees, court costs, and any other relief provided by law. 10 U.S.C. § 987(f)(5)(A), (B). • Violating contracts are void from inception. 10 U.S.C. § 987(f)(3). • Arbitration agreements are unenforceable. 10 U.S.C. § 987(f)(4). • Knowing violations are misdemeanors, punishable by fines, up to one-year imprisonment, or both. 10 U.S.C. § 987(f)(1). • Private right of action for: actual damages (but not less than $2,500); punitive damages upon proof of reckless or willful disregard for the law; reasonable attorney’s fees; and preliminary and equitable relief as the court deems appropriate. 18 U.S.C. § 2724(b). • Criminal penalties under federal law. 18 U.S.C. § 2723.

Driver’s Privacy Protection Act

Driver’s Privacy Protection Act (DPPA)

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