The CARLAWYER ©
By Thomas B . Hudson and Nicole Frush Munro
We wish you and your families a very happy holiday and New Year .
Here ’ s our last 2016 report of legal developments in the auto sales , finance and lease world . This month , we feature developments from the Consumer Financial Protection Bureau and the Federal Trade Commission , as well as our “ Case of the Month .” Remember – we aren ’ t reporting every recent legal development , only those we think might be particularly important or interesting .
Why do we include items from other states ? We want to show you new legal developments and trends . Also , another state ’ s laws might be a lot like your state ’ s laws . If attorneys general or plaintiffs ’ lawyers are pursuing particular types of claims in other states , those claims might soon appear in your state .
Note that this column does not offer legal advice . Always check with your own lawyer to learn how what we report might apply to you , or if you have questions .
This Month ’ s CARLAWYER © Compliance Tip
We saw yet another case this month involving a dealership whose computers were misaligned , causing the disclosures required by the Truth in Lending Act to appear where they didn ’ t belong . If you are having these alignment problems , it would be a lot less expensive to have some reprograming done than to fight off a consumer ’ s complaint that your disclosures were faulty .
Federal Developments
FTC Finally Issues Final Used Car Rule . On November 10 , the FTC announced final amendments to its Used Car Rule . The FTC is revising the Buyers Guide by :
• changing the description of an " As Is " sale ;
• placing boxes in the Buyers Guide that dealers can check to show whether a vehicle is covered by a third-party warranty and whether a service contract may be available ;
• providing a box dealers can check to show that an unexpired manufacturer ' s warranty applies ;
• adding air bags and catalytic converters to the Buyers Guide ' s list of major defects ;
• adding statements that direct consumers to obtain a vehicle history report , check for open recalls , visit ftc . gov / usedcars for information on how to obtain a vehicle history report , and visit safercar . gov to check for open safety recalls ;
• adding a statement in Spanish to the English-language Buyers Guide advising Spanish-speaking consumers to ask for the Buyers Guide in Spanish if the dealer conducts the sale in Spanish ; and
• providing a Spanish translation of the statement that dealers may use to obtain a consumer ' s acknowledgement of receipt of the Buyers Guide .
The amended rule permits dealers to use their remaining stock of Buyers Guides until January 27 , 2018 , a year after the effective date of the amended rule .