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HOT TOPICS
2016
MEMBERSHIP
DIRECTORY
97
Penalties for Violation of Federal Consumer Credit Laws and Regulations Continued…
SUMMARY OF LAW
ADMINISTRATIVE PENALTIES
Truth in Lending Consumer
Actual damages and twice the finance charge.
Leasing Act
(Fed Regs M and Z)
Minimum of $100, Maximum of $1,000.
Drivers Privacy Protection Act
$2,500 liquidated damages per violation + punitive damages
+ under federal law attorney’s fees.
Equal Credit Opportunity Act
FTC may refer a violation to the U.S. Dept of Justice to
(Fed Reg B)
bring a civil action for actual and punitive damages and
injunctive relief.
Fair Credit Reporting Act
$3,500 per violation. Any violation also violates FTC Act § 5
(includes Red Flags Rule, privacy
with potential for damages of up to $16,000 per violation.
disclosures and Risk-based Pricing
Rule liability)
Adverse Action Notices
FCRA - $3,500 per violation. $16,000 per violation if
(see ECOA and FCRA)
FTC enters into an enforcement decree.
OFAC
Up to $1 million per violation.
UDAP Laws
FTC Act – up to $16,000 per violation. State laws vary.
(FTC Act § 5 and State laws)
Recent state consent decrees on dealer advertising have been
in excess of $100,000. The CFPB can recover damages of
up to $1 million per day against independent and
buy-here-pay-here dealers.
IRS Form 8300 reporting of cash
$100 for failing to file and correct Form 8300 within 30 days with
payments in excess of $10,000
an aggregate annual limit of $1.5 million. For businesses with gross
receipts not greater than $5 million, the aggregate is $500,000.
Additional intentional disregard penalty for failing to file and
correct is the greater of $25,000 or the amount of cash received.
Same penalties for failure to furnish notice to persons on whom
Form 8300s were filed except that the intentional disregard
penalty is $250,000 or $200,000 for a business with gross receipts
not greater than $5 million.
Information provided Courtesy of Dealertrack Technologies 516.547.2242;
www.dealertrack.com