Car Dealerships

News & Analysis as of

New York Announces Settlements with Six Auto Dealers

Last week, New York Attorney General Eric Schneiderman announced settlements with six auto dealers imposing fines ranging from $7,500 to $15,000 for allegedly engaging in deceptive and misleading advertising practices. The...more

Putative Nationwide Class Of Car Dealers Turns Out To Be A Lemon - Individualized Issues Preclude Certification

The U.S. District Court for the Northern District of Georgia denied plaintiffs’ motion for nationwide class certification because the proposed class did not meet Rule 23’s commonality or predominance requirements. The...more

Warranty Retail Rate Reimbursement:To Surcharge or Not to Surcharge, That is the Question

Pennsylvania’s dealer franchise protection law, the Board of Vehicles Act (Act), was recently amended effective December 31, 2013. Through the diligent efforts of PAA, the amendments to the Act include...more

Apps Based Car Services-The Question Is Insurance

The drivers of app based car services are considered to be independent contractors, not employees and not on the clock unless there is a passenger in their car. If you examine the car service model, on paper these drivers...more

Automobile Dealer Trade Group Issues Guidance In Response to Recent CFPB Enforcement Action

In response to a recent joint enforcement action by the CFPB and Department of Justice alleging violations of the Equal Opportunity Credit Act, and its implementing regulation, Regulation B, the National Automobile Dealers...more

NADA Proposes Fair Credit Compliance Policy And Program For Its Member Dealers

On January 24, the National Automobile Dealers Association (NADA) distributed a proposed compliance program to its members aimed at reducing the risk of discrimination allegations stemming from CFPB Bulletin 2013-02, which...more

Report Criticizes Auto Dealer Compensation, Add-On Product Practices

On January 23, the Center for Responsible Lending (CRL) released a report titled “Non-Negotiable: Negotiation Doesn’t Help African-Americans and Latinos on Dealer-Financed Car Loans.” The report provides the results of CRL’s...more

Auto dealer trade group issues fair credit guidance

According to a recent Wall Street Journal article, the National Automobile Dealers Association (NADA) has issued fair credit guidance to assist auto dealers in complying with the CFPB’s March 2013 indirect fair lending...more

Justice Department, U.S. Attorney, N.C. Attorney General Sue over Reverse Redlining by Auto Dealers

The U.S. Department of Justice (DOJ), the U.S. Attorney’s Office, and the North Carolina Attorney General filed a complaint last week against two corporations that own two “buy here, pay here” used car dealerships, as well as...more

FTC Settles Nine Auto Dealer Deceptive Advertising Cases

The Federal Trade Commission announced last week that it had entered into proposed consent orders with nine auto dealers in six states that were charged with deceptive advertising in violation of Section 5 of the FTC Act....more

CFPB, DOJ Announce First Joint Fair Lending Action Against Indirect Auto Finance Company

This morning, the CFPB and the DOJ announced their first ever joint fair lending enforcement action to resolve allegations that an auto finance company’s dealer compensation policy, which allowed for auto dealer discretion in...more

The Devil is in the Details

Recently here at McNees, we have been involved with dealer issues that have focused the light on the forms used in the vehicle sales process. There are numerous forms that need to be used to document the final sale of a...more

Proposed California Ballot Initiative Targets Dealer Markups

Recently, the consumer advocacy group Consumers for Auto Reliability and Safety announced that it submitted a new ballot initiative in California that would, among numerous other things, prohibit dealer markups in auto...more

A future without dealer participation and what it should look like, according to the CFPB

At the CFPB’s auto finance forum on November 14, Director Cordray and other CFPB officials reiterated their distaste for dealer finance charge participation as a method of dealer compensation in the indirect auto finance...more

Dealership Update, No.4, November 2013: Are You Paying Your Detailers Correctly?

Over the last year, there has been an increase in dealership payroll audits by the U.S. Labor Department (DOL). Some DOL investigators have implied that these audits are part of a broad internal "initiative" to check...more

Car Dealers Lose Negotiating Leverage & Profits…and Like it

The Chicago Tribune recently ran a story that will in large part not surprise anyone – car buyers are armed with more information before they walk onto a lot than ever before. But there are some aspects about the article that...more

Senators Challenge CFPB On Indirect Auto Finance Guidance

On October 30, a bipartisan group of 22 Senators sent a letter to the CFPB raising concerns about CFPB guidance affecting the indirect auto financing market and auto dealers’ ability to negotiate retail margins with...more

Banking & Financial Services E-Note - October 30, 2013

In This Issue: - Fed Proposes Rule Requiring Banks to Stay Liquid During Crisis - Simulation Tests Banks' Survival Against Cyber Attacks - Largest Banks Close to Meeting Mortgage Settlement Obligations -...more

Democratic Senator wants more regulation of auto dealers

Democratic Senator Edward Markey wants the FTC to take a more active role in policing auto dealer sales practices. Because Dodd-Frank bars the CFPB from directly regulating auto dealers, the CFPB has targeted the fair lending...more

Auto Notes, Fall 2013: Dealer Markup Practices - In a New Era of Federal Enforcement

In March 2013, the U.S. Consumer Finance Protection Bureau (“CFPB”) announced that it would closely scrutinize dealer reserve (“markup”) practices. The federal concern is that dealer markups may result in an illegal disparate...more

EEOC Sues Benny Boyd Car Dealership for Disability Discrimination and Harassment

General Manager with Multiple Sclerosis Denied Partnership and Harassed Because of his Disability, Forced to Resign from Dealership, Agency Charges - LUBBOCK - A Lubbock, Texas automobile dealership violated federal...more

DOJ Settles Fair Lending Case against Auto Dealer

The U.S. Department of Justice (DOJ) recently settled a fair lending lawsuit against Union Auto Sales, Inc., a California automobile dealer. This means that, once again, a DOJ attempt to use disparate impact evidence to...more

Advertising Law -- Sep 18, 2013

E-Cigarettes Increase Presence With Traditional Tobacco Advertising – Will Regulation Follow? - E-cigarettes are following in the footsteps of their nonelectronic predecessors by utilizing advertising means no longer...more

DOJ Announces Settlement Of Auto Lending Discrimination Suit

On September 6, the DOJ announced the resolution of a long-running lawsuit against an auto dealer and a bank that financed many of the dealer’s loans, in which the government alleged that the dealer and the bank violated ECOA...more

FTC Settles Deceptive Advertising Claims against Two Auto Dealers

The Federal Trade Commission recently accepted agreements containing proposed consent orders from two car dealers who were charged with deceptive advertising in violation of Section 5 of the FTC Act....more

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