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HOT TOPICS

2015 GNYADA Membership Directory

79

Summary

Administrative

Civil Lawsuits

Criminal

of Law

Penalties

Penalties

Penalties for Violation of Federal Consumer Credit Laws and Regulations

Continued…

FTC Telemarketing

Up to $16,000 for each

Individual call recipients and

Rule

violation plus redress to

State AGs can obtain up to

injured consumers. For dealers, $500 per violation, the

subject to CFPB regulation

amount trebled for willful or

$5,000 to $1 million for each knowing violations.

day a violation continues.

Magnuson-Moss

May constitute an FTC § 5

Consumers can recover

Warranty Act

UDAP violation for which the damages from the breach.

FTC can assess penalities of up This includes remedies

to $16,000 per violation.

already available under state

law, such as recovery of the

purchase price, market price

of a replacement, loss in value

due to the problem, recovery

of other costs, and statutory

penalties, if any.“Other legal

and equitable relief,”court

costs and attorneys’fees are

also recoverable. Breach of

written warranty, breach of

implied warranty, breach of

service contract and failure

to comply with obligations

are the four causes of action

directly referenced in the Act.

Telephone Consumer

The FCC has authority to bring $500 - $1,500 per call or

Protection Act of 1991

enforcement actions for

text message sent to any

(TCPA) and FCC Regulations

damages and has done so

wireless number you can’t

prohibiting use of

repeatedly, assessing

prove you have prior

autodialers or text

penalties greater than $1

written consent to call or

messages to cell phones

million. States also have laws text. Class action liability is

or use of pre-recorded

on telemarketing allowing

unlimited.

messages to cell phones

Attorneys General to sue for

or land lines without the

administrative penalties.

prior written consent of

the consumer

Information provided Courtesy of Dealertrack Technologies 516.547.2242;

www.dealertrack.com

*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.