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HOT TOPICS
2017
MEMBERSHIP
DIRECTORY
176
PENALTIES FOR VIOLATION OF FEDERAL
CONSUMER CREDIT LAWS AND REGULATIONS
Information provided Courtesy of Dealertrack Technologies 888.705.7926;
www.dealertrack.comDisclaimer
The following is a quick reference to potential penalties for certain federal consumer laws and regulations
referenced in the
2017 Compliance Guide
from Dealertrack. 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 (October
2016), and may be subject to change.
Truth in Lending Act (TILA)
Consumer Leasing Act, Fed Regs M and Z
•
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.
•
Court costs.
•
Actual damages.
•
Statutory damages for certain violations:
- Twice the finance charge (or, in the case of a lease, 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.
Drivers Privacy Protection Act (DPPA)
•
Actual damages, but not less than $2,500 + punitive damages + attorney’s fees.
•
Criminal penalties under federal law.
Equal Credit Opportunity Act (ECOA)
Fed Reg B
•
FTC may refer a violation to the U.S. Department of Justice to bring a civil action for actual and punitive
damages and injunctive relief.
•
Actual damages and punitive damages not to exceed $10,000 per violation.
•
Class action damages of up to the lesser of $500,000 or 1% of dealer’s net worth.