Auto Dealer Non-Compliance Penalties

Federal Law or Rule Penalty Amount for Non-Compliance
Adverse Action Notices
Liability for punitive damages … is limited to $10,000 in individual actions and the lesser of $500,000 or 1 percent of the creditor's net worth in class actions.
CAN SPAM
Each separate email violation is subject to penalties of up to $16,000
Credit Practices Rule
Civil penalties of up to $10,000 for each violation and can issue an order prohibiting further violations
Disposal Rule
Up to $2,500 in penalties for each independent violation
Do Not Call Rule
Up to $16,000 per violation
Form 8300 and Reporting Cash Payments of Over $10,000
If you willfully fail to file Form 8300, you can be fined up to $250,000 ($500,000 for corporations) or sentenced to up to 5 years in prison, or both
Gramm-Leach-Bliley Act
Civil penalties of up to $10,000 per violation for officers and directors personally liable, and for the financial institution liable, penalties of up to $100,000 per violation. Criminal penalties include imprisonment for up to five years and fines.
Office of Foreign Assets Control (OFAC)
30 years in jail, fines up to $10 million against corporations, $5 million against individuals and civil penalties of up to $1 million per incident
Red Flags Rule
$3,500 as the maximum civil penalty per violation
The Truth in Lending Act (Regulation M)
Criminal liability for willful and knowing violation is a maximum fine of $5,000 and/or maximum imprisonment of one year
The Truth in Lending Act (Regulation Z)
Criminal liability for willful and knowing violation is a maximum fine of $5,000 and/or maximum imprisonment of one year
The Consumer Leasing Act
Up to $5,000 or up to one year of incarceration for criminal penalties; Up to $1,000,000 in civil class action suits
The Equal Credit Opportunity Act
Liability for punitive damages can apply only to nongovernmental entities and is limited to $10,000 in individual actions and the lesser of $500,000 or 1 percent of the creditor's net worth in class actions … provides for equitable and declaratory relief and … authorizes the awarding of costs and reasonable attorney's fees.”
The Fair Credit Reporting Act
The civil penalties for noncompliance include paying up to $1,000 in damages to the consumer. If the FTC takes civil action, the fine is a maximum of $2,500 per violation.
The Magnuson-Moss Warranty Act
Judgment a sum equal to the aggregate amount of cost and expenses (including attorneys’ fees based on actual time expended
Telemarketing Sales Rule
Civil penalties of $16,000 per violation
Used Car Rule
Up to $16,000 for each violation of failing to display a Buyer's Guide

About DCS

Dealer Compliance Services will create a compliance plan that works with your daily operations in each department.

Your dealership’s custom solution will include ongoing Auditing, Testing, Training, and Documentation.

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