False. As long as you only advertise the rate using the term “annual percentage rate” or “APR”, you comply with the Truth in Lending Act. The advertising of annual percentage rate is not a trigger term requiring follow-on disclosures. Dealers get in trouble is when they use limiting disclaimers that may be trigger terms. For
Congress Kills the CFPB Arbitration Rule
In a great victory for motor vehicle dealers, Congress passed, and the President has signed, a resolution invalidating the CFPB’s regulation on predispute arbitration. Charapp & Weiss represented a group of state and metro dealer trade associations in opposing the CFPB rule. We have written about it on several occasions. While the regulation would not
Cyber Crimes: Why You Should Be Very Afraid
You want to balance your inventories. You have twenty more new vehicles than you need. Another dealer says he wants them. You do the deal, he picks up the vehicles, and you do not get paid. The dealer says he sent you a wire transfer for three-quarters of a million dollars, but you never received
Common Sense Prevails
For more than half a decade, the federal Ninth Circuit Court of Appeals, notorious for its progressive decision making, has been out of step with decisions from other federal circuits and district courts that have considered the language of the car dealer exemption to the Fair Labor Standards Act as it applies to service advisors.
The #MeToo Movement and Pay Plans
We recently reported on the success of the #MeToo movement in getting a provision in the recent federal tax legislation to prohibit deduction of payments, attorneys fees, and other expenses in settling sexual harassment claims if there is a confidentiality clause in the settlement agreement. Recently, fifteen U.S. Senators cosponsored legislation to bar employers from
Advertising: Spot the Problem – Answers
Under the Truth in Lending Act, any advertisement of interest rate must be for the annual percentage rate or APR, using either form of that term. An advertisement that does not use that term violates TILA. Even though you may use a toll-free number to make full lease disclosures, some things must be disclosed in
Advertising: Spot the Problem
The Federal Trade Commission shows no sign of slowing down its efforts to police car dealer advertising. How well do you know federal advertising requirements? Identify the specific problem in each of the ad representations below. Answers are can be found HERE. 2.99% financing available on new cars today. Drive a new car for just
Service-members Civil Relief Act
Car dealers have focused on the rights of active duty service members and their dependents because of the December 14, 2017 change in interpretation of regulations on the Military Lending Act by the Department of Defense. However, the government has also been busy enforcing the Servicemembers Civil Relief Act (“SCRA”), and there are some basics
More Franchise Myths
Occasionally, we write about myths in the car business – things that “everybody knows” that are not true. Here are some franchise myths we have been discussing with dealers. My dealer agreement is expiring. I must sign a new agreement before it expires. That a franchise agreement can expire is one of the great myths
Don’t Let CFPB Fumbles Affect Your Compliance Efforts
The Consumer Financial Protection Bureau has had its wings trimmed, but don’t allow that to reduce your emphasis on compliance. The Federal Trade Commission is the cop on the beat for auto dealers, and it shows no sign of slowing The CFPB has been buffeted by Trump headwinds. There have been several recent challenges. Congress