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Financial Services Industry Car Dealerships

Ballard Spahr LLP

CFPB wins default judgment in auto dealership complaint, but federal judge rejects bureau assessment of damages

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A federal District Judge for the Northern District of Georgia, Victoria Marie Calvert, awarded a default judgment to the CFPB against USASF, a car loan servicer of loans originated by U.S. Auto Sales Inc., a buy-here,...more

Troutman Pepper

New Hampshire Enacts Law Overhauling Its Motor Vehicle Retail Installment Sales Act

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Any business involved in motor vehicle installment financing in New Hampshire needs to assess the multiple and significant changes to a key law that have been enacted with immediate effect....more

Seyfarth Shaw LLP

Fifth Circuit Set to Weigh Challenge to FTC’s CARS Rule - Seyfarth's Future of Automotive Series

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The administrative challenge brought by the National Automobile Dealers Association (NADA) and another trade association against the Combating Auto Retail Scams (“CARS”) Trade Regulation Rule, issued last year by the Federal...more

Ballard Spahr LLP

FTC, State of Arizona Charge Auto Dealership with Deceiving Consumers

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On August 15, 2024, the Federal Trade Commission (“FTC”) and Arizona Attorney General announced a proposed settlement with an Arizona-based vehicle dealership to resolve allegations that the dealership misrepresented prices...more

Troutman Pepper

FTC and Arizona AG Reach $2.6 Million Settlement with Motor Vehicle Dealer Over Alleged Deceptive and Discriminatory Sales and...

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Last week, the Federal Trade Commission (FTC) and the State of Arizona announced a joint action against Coulter Motor Company, an Arizona-based motor vehicle dealership, and its former general manager, for allegedly engaging...more

Holland & Knight LLP

The FTC and Connecticut Join Forces for Action Against Nissan Dealer

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In this episode of his "Clearly Conspicuous" podcast series, "The FTC and Connecticut Join Forces for Action Against Nissan Dealer," consumer protection attorney Anthony DiResta discusses a recent action taken by the Federal...more

Ballard Spahr LLP

Fifth Circuit Court of Appeals Schedules Oral Arguments in CARS Rule Challenge for Oct 7

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The Fifth Circuit Court of Appeals has set oral arguments for Oct. 7 in the challenge of the Federal Trade Commission’s Combating Auto Retail Scams Rule (“CARS Rule”). The petition, filed on January 5, 2024 by the National...more

Ballard Spahr LLP

Vroom, FTC Agree to $1 Million Settlement over Car Sales Misrepresentation

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Vroom, the former used car sales website which halted vehicle sales in January 2024, has agreed to a proposed settlement with the FTC over allegations the company misrepresented that it had examined all vehicles before...more

Troutman Pepper

The CARS Rule — Moving the Metal: The Auto Finance Podcast

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In this inaugural episode of Moving the Metal, Troutman Pepper attorneys Brooke Conkle and Chris Capurso examine the major requirements of the FTC's proposed CARS Rule. After a refresher on the rule's requirements, Brooke and...more

Ballard Spahr LLP

FTC files opposition to petition challenging CARS Rule in the 5th Circuit

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On May 14, 2024, the Federal Trade Commission’s (“FTC”) filed its brief in opposition to Petitioners’ Brief in the legal challenge to the Combating Auto Retail Scams Rule (“CARS Rule”). The petitioners are the National...more

McDermott Will & Emery

Mobility@McDermott: Monthly Update (02/2024)

1. Ruling of European Court of Justice on jurisdiction in product liability case- Another interesting judgment of the ECJ on jurisdiction in cross-border disputes was handed down on 22 February 2024 in a product liability...more

Husch Blackwell LLP

FTC Finalizes—and Then Pauses—CARS Rule Impacting Dealers, Auto Finance Companies

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On December 12, 2023, the Federal Trade Commission (FTC) announced it has finalized the Combating Auto Retail Scams Rule (CARS Rule), which imposes various obligations affecting dealers’ sales practices and will also impact...more

Ballard Spahr LLP

FTC postpones effective date for CARS Rule in response to legal challenge

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On January 18, 2024, the Federal Trade Commission’s (“FTC”) announced that it is postponing the effective date of the Combating Auto Retail Scams Rule (“CARS Rule”) in light of the legal challenge from industry trade...more

Troutman Pepper

FTC and Connecticut AG File Suit Against Auto Dealer over Alleged “Junk Fees”

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The Federal Trade Commission (FTC) and Connecticut Attorney General William Tong filed suit against auto dealer Manchester City Nissan (Manchester City), its owner, and several employees for allegedly deceiving consumers...more

Ballard Spahr LLP

Auto dealer trade groups challenge FTC CARS Rule in Fifth Circuit

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On January 5, 2024, two trade groups representing auto dealers filed a petition for review challenging the Federal Trade Commission’s (“FTC”) new Combating Auto Retail Scams Rule (“CARS Rule”). In the petition, the National...more

Wiley Rein LLP

Wiley Consumer Protection Download (January 8, 2024)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Morgan Lewis

FTC’s Final ‘Cars Rule’ on Dealer Sales Practices: Implications for Banks, Auto Finance, and ‘captives’

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The Federal Trade Commission recently issued a final rule that is squarely aimed at changing the way dealers interact with customers in the financing process. The final rule takes effect on July 30, 2024....more

Ballard Spahr LLP

FTC issues final CARS Rule setting new requirements on vehicle sales

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On December 12, 2024, the Federal Trade Commission (“FTC”) announced its Combating Auto Retail Scams Rule, otherwise known as the “CARS Rule,” setting new requirements on the sale, financing, and leasing of vehicles by motor...more

Cozen O'Connor

FTC is Riding Shotgun with Potential Car Buyers

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The FTC finalized a new rule intended to protect consumers buying a new car from unlawful and deceptive sales tactics pursuant to its authority under the Dodd-Frank Act to prescribe rules relating to unfair or deceptive...more

Seyfarth Shaw LLP

FTC Targets Bait-And-Switch Tactics And Hidden Fees With Rule For New Car Dealers

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After more than a year of review, the Federal Trade Commission (FTC) on December 12, 2023 launched its much-anticipated final rule targeting misleading advertising and sales tactics by new car dealers. First proposed in the...more

Jaburg Wilk

New FTC Rule Expands Reach of Data Breach Notification Requirement to Non-Banking Financial Institutions

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In an amendment to the Safeguards Rule of the Gramm-Leach-Bliley Act (GLBA), which was officially announced on October 27, 2023, the Federal Trade Commission (FTC) will mandate that a wide array of nonbank financial...more

Ballard Spahr LLP

FTC and Wisconsin AG enter into settlements with auto dealerships for alleged discriminatory financing practices deceptive add-on...

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The Federal Trade Commission and Wisconsin Attorney General have entered into settlements with a group of auto dealerships, their current and former corporate owners, and their general manager for allegedly engaging in...more

Troutman Pepper

FTC and Wisconsin DOJ Settle with Auto Group over Alleged Illegal Add-Ons and Discrimination Against American Indian Consumers

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On October 24, the Federal Trade Commission (FTC) and the Wisconsin Department of Justice announced a settlement with Wisconsin auto dealer group Rhinelander Auto Center, Inc. (Rhinelander), its current and former owners, and...more

McGlinchey Stafford

Junk Fee Supervisory and Enforcement Activity Targets Auto Servicers

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For almost two years, the Consumer Financial Protection Bureau (CFPB) has made combating so-called junk fees an agency priority, bringing multiple enforcement actions, undertaking supervisory activity, and collaborating with...more

Troutman Pepper

Rhode Island AG Settles with Dealerships over Allegedly Charging Fees Not Included in Advertised Prices

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Rhode Island Attorney General Peter F. Neronha announced a total settlement of $557,815 with three car dealerships to resolve allegations that the dealerships...more

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