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2015 GNYADA Membership Directory

77

Summary

Administrative

Civil Lawsuits

Criminal

of Law

Penalties

Penalties

Truth in Lending

Actual damages and twice the Class action damages of up Willful and knowing

Consumer Leasing Act

finance charge Minimum of

to the lower of $500.000

violations - fine of $6,000

(Fed Regs M and Z)

$100, Maximum of $1000.

or 1% of creditor’s net worth.

1 year in prison or both.

Drivers Privacy

$2,500 liquidated damages

Criminal penalties

Protection Act

per violation + punitive

under federal law.

damages + under federal

law attorney’s fees.

Equal Credit

FTC may refer a violation

Actual damages and punitive

Opportunity Act

to the U.S.Dept. of Justice

damages to to exceed

(Fed Reg B)

to bring a civil action for

$10,000 per violation. Class

actual and punitive damages action damages of up to

and injunctive relief.

the lesser of $500,000 or

1% of dealer’s net worth.

Fair Credit Reporting Act

$3,500 per violation.

Private right of action for

(includes Red Flags Rule

Any violation also violates

certain provisions (e.g,

privacy disclosures, and

FTC Act § 6 with potential

Affiliate Marketing Rule).

Risk-based Pricing Rule

for damages of up to

Damages up to $1,000 per

Liability)

$16,000 per violation.

violation and unlimited

punitive damage liability.

Adverse Action Notices

FCRA - $3,500 per violation.

ECOA – Actual damages +

(see ECOA and FCRA)

$16,000 per violation if

punitive damages up to

FTC enters into an

$10,000 per violation, not to

enforcement decree.

exceed the lesser of $500,000

or 1% of dealer’s net worth.

Unlimited punitive damages

under FCRA .

OFAC

Up to $1 million per

Up to $10 million +

violation.

30 years imprisonment.

UDAP Laws (FTC Act § 6

FTC Act – up to $16,000 per

Private causes of action

Varies by state.

and State laws)

violation. State laws vary

for actual, statutory and

Recent state consent decrees punitive damages are

on dealer advertising have

permitted under most

been in excess of $100,000.

state UDAP laws. Some

The CFPB can recover damages states allow recovery of

of up to $1 million per day

treble damages and

for knowing or intentional

class actions.

violations against

independent and buy-here-

pay-here dealers.

Penalties for Violation of Federal Consumer Credit Laws and Regulations

PENALTIES FOR VIOLATIONS

*The above laws and regulations have provisions for assessing the wrongdoer plaintiffs’attorney’s fees and costs or costs of regulatory investigation along with civil or criminal

penalties. In a class action, the plaintiffs’attorney’s fees can easily be six figures or more depending on the length and complexity of the case.