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HOT TOPICS
2015 GNYADA Membership Directory
78
Summary
Administrative
Civil Lawsuits
Criminal
of Law
Penalties
Penalties
Penalties for Violation of Federal Consumer Credit Laws and Regulations
Continued…
IRS Form 8300
$100 for failing to file and
None
reporting of cash
correct Form within 30 days
payments in excess
with an aggregate annual
of $10,000
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. Penalties for failure
to furnish notice to persons on
whom Form 8300s were filed
by January 31 of the following
year is $100 per violation. The
aggregate annual limitation is
$1,500,000. In the case of a
business having gross receipts
not more than $5 million, the
aggregate annual limitation is
$500,000. Lesser penalties
apply if the failure to file an
IRS 8300 is corrected within
30 days.
Used Car Rule
Up to $16,000 per violation in a Possible UDAP claims or fraud Varies by state.
proceeding brought by the FTC. claims under state law.
In addition, possible State AG
claims under UDAP laws and
Motor Vehicle Sales laws.
Federal
The Department of
Civil actions can collect the Criminal fines or 3 years
Odometer Act
Transportation can impose
greater of three times the
in prison, or both.
penalties of up to $2,000 per
actual damages or $10,000.
violation up to a maximum
amount for a series of violations
of $100,000.
FTC Safeguards
Potential fine of $16,000 per
Possible UDAP and breach
and Disposal Rules
day. FTC has entered into
of contract and negligence
20-year consent decrees
claims under state laws.
requiring biannual security
Courts have permitted
firm audits and requirements lawsuits against retailers who
for updating dealer security
incurred security breaches
systems.
compromising customer
information.