Rules of the Road

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Don't Say We Didn't Warn You
Hudson details a Connecticut lawsuit that confirmed as-is vehicle sales are subject to the UCC’s implied warranties rule.
Eric Johnson, partner at Hudson Cook LLP The CFPB’s Spirit Lives On
In the first of a series of F&I Think Tank webinars, attorney Eric Johnson offered a wake-up call to dealers and F&I professionals who thought the industry won a decisive victory over the Consumer Financial Protection Bureau when the federal agency’s auto finance guidance was rescinded in May.
Snatching Defeat From the Jaws of Victory
Some states, including Minnesota, permit ‘as is’ sales with no written warranty and an exclusion of implied warranties. No state, including Minnesota, permits fraud.
Arbitration Agreements: Not Always Good All the Time
Hudson explains why arbitration agreements are no substitute for frond-end compliance.
Technology Can Compel Compliance
New and widely available tools can help auto dealers automate parts of the sales and F&I process while preventing errors and deterring fraud.
A Dealer Win, and a Couple of Lessons
Hudson recounts the inspiring tale of a dealer who prevailed in a lawsuit in the consumer-friendly state of Maryland.
Treat Your Customers With Consideration
Consideration is both an admirable trait and a legal term. Hudson explains how one Tennessee dealer prevailed when a car buyer objected to arbitration.
NLRB General Counsel Throws Dealers a Lifeline
President Trump’s pick for Labor Board general counsel just swung the pendulum back to an employer-friendly stance. Human resources expert weighs in.
How to Achieve Compliance Confidence
Got three minutes? Read this three-part briefing on the agencies, topics and resources you need to know to avoid compliance issues in 2018.
President Donald Trump promised sweeping regulatory reform on the campaign trail and could play a pivotal role in easing or eliminating some regulations affecting the auto finance industry. Photo by Gage Skidmore 5 Ways Trump Can Alter Finance
Auto dealer regulations face an uncertain future under the Trump presidency. Two California-based attorneys take a look at the road ahead for the CFPB, the FTC, and state regulators.

Rules of the Road News

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FTC Shuts Down Websites That Sold Fake Pay Stubs
The operators of websites that sold fake pay stubs and other financial documents have agreed to permanently shut down their business as part of separate settlements with the Federal Trade Commission, the regulator announced this week.
Photo courtesy of Kromtech Alliance Corp. DealerBuilt Settles With New Jersey Regulators Over Data Breach
Software provider DealerBuilt agreed to implement security protocols to settle an investigation into a data breach that exposed the personal information of customers and employees at more than 100 dealerships nationwide.
Pa. Dealer Agrees to Pay $2.1 Million to End Prosecution Into Bank Fraud
According to the U.S. Attorney’s Office, Hallman Chevrolet falsified loan documents as well as costume jewelry brought in by customers as collateral for purported down payments over a six-year period beginning in 2009. The dealer, David Hallman, accepted responsibility for the scheme and agreed to pay a $1.4 million fine and more than $737,000 in restitution to end federal prosecution.
Calif. Dealers Score Partial Victory With Passage of Dealer Protection Bill
While the bill further strengthens dealer protections and updates others, several protections aimed at future services and opportunities for automakers to serve customers directly were stripped out of the bill prior to last Thursday’s unanimous vote by the California Legislature.
AG Coalition: CFPB Has 'No Authority to Overrule' High Court’s ECOA Interpretation
A coalition of 14 attorneys general warned CFPB Acting Director Mick Mulvaney against taking any action to reinterpret ECOA as not providing for disparate impact liability — signaling that the fight over dealer participation might not be over.
Senate Committee Narrowly Confirms Trump's Pick to Head BCFP
The U.S. Senate Banking Committee narrowly approved the nomination of Kathy Kraninger to head the Bureau of Consumer Financial Protection. The vote sends her nomination to the full Senate for consideration.
EEOC Files Sex Bias Suit Against Ferman’s Tampa Harley-Davidson
The federal agency filed suit in federal court on Monday, charging Ferman Automotive with sex discrimination for not promoting a qualified female sales manager to general manager nine times.
FTC Charges Arizona Group With Falsifying Incomes on Consumer Credit Apps
According to the regulator, this was the FTC’s first action alleging income falsification by dealerships. Charged are the owners of Tate’s Auto Group, which operates four dealerships in Arizona and New Mexico, near the border of the Navajo Nation.
Photo by Laimerpramer via Wikimedia Commons Wells Fargo to Begin Growing Auto Loan Portfolio by Mid-2019
Wells Fargo's continued runoff of its auto loan portfolio resulted in a $10.3 billion year-over-year decline in auto loan balances in the second quarter, but executives said the bank is positioned to begin growing its auto finance business once again.
FTC, 12 Partner Agencies Conduct Used Car Rule Compliance Sweep
The compliance sweep, which took place in seven states, is the first since the agency's new Used Car Rule took effect earlier this year. Dealers who failed to comply could face penalties of up to $41,484 per violation.