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CFPB Looks at Administrative Adjudications

Monday, 05 February 2018 21:38
The Consumer Financial Protection Bureau (CFPB) issued a Request for Information (RFI) about administrative adjudications. The bureau is seeking to better understand the benefits and impacts of its use of administrative adjudications, and how its existing process may be improved. This is the second in a series of RFIs announced as part of Acting Director Mick Mulvaney’s call for evidence to ensure the bureau is fulfilling its proper and appropriate functions to best protect consumers. This RFI will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. The next RFI in the series will address the bureau’s enforcement processes, and will be issued next week.

Law Firm Hires Employment Expert

Wednesday, 03 January 2018 20:36
The Scali Law Firm, a firm specializing in auto dealership law, announced that Jack Schaedel has joined the firm as a partner. Schaedel moves over from the Los Angeles office of Dykema, where he was a partner and member of the Labor & Employment Practice Group. His experience includes numerous favorable verdicts and dismissals for clients accused of discrimination or harassment, including a million-dollar reverse fee award in favor of a client wrongly accused of sexual harassment by the U.S. Equal Employment Opportunity Commission.At the Scali firm, Schaedel will co-chair the Labor and Employment Law Practice, with partner Jennifer Woo Burns.

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AG Bans Service Contract Firm


Tuesday, 19 December 2017 21:51
North Dakota’s attorney general issued a cease and desist order against Jason Rhoden of Santa Ana, Calif., doing business as Vehicle Protection Department LLC, for violations of the consumer fraud and telephone solicitation laws.The Attorney General’s Consumer Protection division initiated an investigation after a consumer complained that she received a telephone solicitation even though her number is registered on the Do Not Call list. The consumer complained that Rhoden’s company offered to sell her an extended warranty for a vehicle she does not own. 
The consumer reported that when she questioned the caller, he responded with a threat, telling her he knew where she lived.Rhoden also operates a website selling these supposed extended warranties, vehicleprotectiondepartment.net.Rhoden ignored all efforts by investigators to contact him over several weeks, and he did not respond to the investigative demand for information about solicitation calls his company made to North Dakota residents. Rhoden has been banned from making any further solicitations in North Dakota, including selling extended vehicle warranties to North Dakota residents through his website.

Dealers Must Avoid Claims of Harassment

Tuesday, 19 December 2017 12:10
It seems there is a new story every day about sexual harassment in the workplace. As a a result, employees are now willing speak up about comments or conduct that may have been afraid to speak up about in the past, said attorney Matthew Simpson of Fisher & Phillips LLP. “It’s not they type of situation where you want to walk up to the line and not cross it,” Simpson said. “You want to stay far away from that line.” Simpson said dealers already face elevated scrutiny due to the reputation of their business. This makes avoiding any additional accusations even more important. Harassment can come anybody in the store, including employees, vendors and even customers. The legal standard is fairly high, Simpson said. It requires a sever offense or unwelcome action or conduct that’s sever or offensive. So saying a woman looks good in a dress might not meet the legal requirement.  Saying it on a daily basis gets closer. Simpson said dealers need to take steps to prevent any claims of harassment. This means training staff on proper behavior and taking any claims seriously. All this comes with a cost, but the cost of lawsuits and bad publicity are much higher.
Men Face Charges of Defrauding Auto Creditors

Men Face Charges of Defrauding Auto Creditors

Two Pennsylvania men have been indicted by a federal grand jury on charges of conspiracy to commit wire fraud and wire fraud involving straw buys from a used-car dealership.According to...

Auto Stocks Outperform Market

Auto Stocks Outperform Market

The Kerrigan Auto Retail Index (The KAR Index), a composite of the seven publicl...

  • Men Face Charges of Defrauding Auto Creditors
    Men Face Charges of Defrauding Auto Creditors Two Pennsylvania men have been indicted by a federal grand jury on charges of conspiracy to commit wire fraud and wire fraud involving straw buys from a used-car dealership.According to…
    Written on Thursday, 15 September 2016 16:49
  • FTC Issues Revised Used Car Rule
    FTC Issues Revised Used Car Rule The Federal Trade Commission has announced final amendments to its Used Car Rule.The FTC has sought public comments on a series of proposed changes to the Rule (formally known as…
    Written on Monday, 14 November 2016 01:09
  • Dealer Fails to Pay Sales Tax
    Dealer Fails to Pay Sales Tax Biel Semexant Jr., owner of Auction Access USA, doing business as Access 2 Auctions, has been arrested on charges that he stole more than $50,000 in sales tax he collected…
    Written on Monday, 19 September 2016 18:32
  • CFPB Takes Action Against Title Pawn Firm
    CFPB Takes Action Against Title Pawn Firm The Consumer Financial Protection Bureau took action against TitleMax parent company TMX Finance LLC. The bureau ordered TMX Finance to stop its unlawful practices and pay a $9 million penalty.…
    Written on Tuesday, 27 September 2016 14:19
  • State Shuts Down Repair Shops
    State Shuts Down Repair Shops The Michigan Secretary of State has issued cease and desist orders to five unregistered auto repair shops in Shiawassee, Kent, Bay and Calhoun counties.Justice Recovery & Repair in Durand is…
    Written on Wednesday, 07 September 2016 14:39
  • State Claims Dealer Forged Documents
    State Claims Dealer Forged Documents A southeast Michigan auto dealer faces seven felony charges for allegedly forging federal import documents after Secretary of State staff became suspicious of the documents he presented.Auto dealer David S.…
    Written on Thursday, 29 September 2016 17:32
  • AG Sues Dealer for Failing to Deliver Titles
    AG Sues Dealer for Failing to Deliver Titles The Ohio attorney general announced a lawsuit against a Cleveland used-car dealership accused of failing to deliver motor vehicle titles.Ohio Auto Credit LLC and its owners are accused of violating…
    Written on Wednesday, 05 October 2016 21:27
  • State Arrests Dealer for Not Paying Taxes
    State Arrests Dealer for Not Paying Taxes Roberto A. Martinez, operator of RDM Automotive Group, Inc., has been arrested on charges for the theft of more than $922,000 in sales tax he collected from customers, but failed…
    Written on Thursday, 03 November 2016 20:51
  • Former Salesman Gets Prison for Pocketing Payments
    Former Salesman Gets Prison for Pocketing Payments A former salesman was sentenced to at least 16 months in prison for stealing car payments from customers and dealerships in Nassau County. Michael McGriff pleaded guilty to charges, from…
    Written on Tuesday, 13 September 2016 14:19
  • FTC Updates Penalties
    FTC Updates Penalties The Federal Trade Commission has adjusted the maximum civil penalty dollar amounts for violations of 16 provisions of law the FTC enforces, as required by the Federal Civil Penalties Inflation…
    Written on Sunday, 15 January 2017 04:09