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HOT TOPICS
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.