Page 38 - GIADA july2020

THE CARLAWYER ©

The CARLAWYER ©

By Nicole F. Munro and Thomas B. Hudson

We hope you and your loved ones enjoy a that sent allegedly deceptive mailers to con- orders. Under the new policy, Kohl’s would
safe, healthy, socially distanced 4th of July sumers purporting to be federal COVID-19 share information identifying the identity
holiday and that you are able to dodge the stimulus benefit documents. The mailers thief only with law enforcement or with a
virus as summer arrives. Like last month, directed recipients to visit an address in victim’s attorney upon the direct request of
there isn’t a great deal going on this month Florida, designated as “relief headquarters,” law enforcement or the victim’s attorney.
by way of business and legal develop- in order to “claim these stimulus incen-
ments, but there have been a few. Here’s tives.” However, consumers who visited The complaint alleged that, in August 2018,
our monthly article on selected legal de- the address listed in the mailers found a lot Kohl’s further revised its policy to provide
velopments we think might interest the hosting a used car sale. Be alert to ad sales Kohl’s charge account customers a more ex-
auto sales, finance, and leasing world. This companies peddling any ad program men- pansive list of business transaction records,
month, we note developments at the Con- tioning the virus. but Kohl’s continued to refuse to provide
sumer Financial Protection Bureau and the detailed order information, including ad-
Federal Trade Commission. CFPB Releases FAQs on CARES Act Cred- dress and phone numbers listed on a fraud-
it Reporting Requirements. On June 16, ulent application or the shipping address
As usual, our article features the “Case of the CFPB released FAQs related to the credit used for fraudulent orders, directly to the
the Month” and our “Compliance Tip.” reporting requirements of the CARES Act, customer. In addition, Kohl’s no longer
Note that this column does not offer legal which imposes requirements on furnishers provided detailed information about fraud-
advice. Always check with your lawyer to related to information reported to consum- ulent orders to victims’ attorneys. There-
learn how what we report might apply to er reporting agencies about consumers af- fore, a victim’s only recourse for obtaining
you or if you have questions. fected by the COVID-19 pandemic. The such information from Kohl’s was a request
FAQs expand on the Bureau’s earlier policy directly from law enforcement.
FEDERAL DEVELOPMENTS statement outlining the responsibilities of
CRAs and furnishers during the pandemic. As part of the settlement, Kohl’s agreed to
CFPB Announces New Pilot Advisory The FAQs are intended to help ensure that an injunction and to pay a $220,000 civil
Opinion Program. On June 18, the CFPB consumers receive the credit reporting pro- money penalty. Kohl’s also agreed to pro-
announced a new pilot advisory opinion tections required by the CARES Act. vide records and certain notices to eligible
program allowing regulated entities to ask victims who previously submitted Section
for an advisory opinion when they need Retailer Settles FTC’s FCRA Claims for 609(e) requests and to post a notice on its
clarification about regulatory require- Refusing to Provide Identity Theft Vic- website for the next three years informing
ments. The CFPB intends to make such tims with Records of Questionable Trans- consumers how to request records related
opinions publicly available. Factors the actions. On June 10, Kohl’s Department to transactions resulting from identity theft.
CFPB will consider when determining the Stores settled FTC allegations that the re-
appropriateness of an opinion include: that tailer violated the Fair Credit Reporting FTC Provides Annual Report to CFPB on
the interpretive issue has been noted during Act by refusing to provide identity theft TILA, CLA, and EFTA Enforcement Ac-
prior CFPB examinations as one that might victims with complete records of question- tivities. On June 4, the FTC provided its
benefit from additional regulatory clari- able transactions. This is the first case the annual report to the CFPB concerning its
ty; that the issue is one of substantive im- FTC has brought under Section 609(e) of enforcement activities during 2019 related
portance or the issue’s clarification would the FCRA, which requires businesses to to compliance with Regulation Z (Truth in
provide significant benefit; and/or that the provide an identity theft victim with ap- Lending Act), Regulation M (Consumer
issue concerns an ambiguity not previously plication and business transaction records Leasing Act), and Regulation E (Electronic
addressed through an interpretive rule or for a transaction the victim alleges to be the Fund Transfer Act). The FTC’s report high-
other authoritative source. The CFPB not- result of identity theft, subject to limited lights, among other things, enforcement
ed that there will be a strong presumption exceptions. The business must provide the actions, rulemaking, research, and policy
against the appropriateness of an opinion records no later than 30 days after receiving development related to vehicle financing
for issues that are the subject of an ongoing a victim’s request with appropriate proof and leasing, credit repair and debt relief,
investigation or enforcement action or an of identity and proof of a claim of identity electronic fund transfers, and the agency’s
ongoing or planned rulemaking. theft. Military Task Force, which focuses on vari-
ous initiatives to assist military consumers.
FTC Sues Marketer for Using Deceptive The FTC’s complaint alleges that, begin-
COVID-19 Stimulus Mailers to Lure ning in February 2017, Kohl’s modified its CASE OF THE MONTH
Consumers to Used Car Sale. On June 17, policies and procedures for responding to
the FTC announced that it sued a company Section 609(e) requests related to website Car Buyer’s Rescission and Fraud Claims

36 | GIADA Independent Auto Dealer JUL/AUG 2020