The Federal Trade Commission will host its second roundtable to gather information on consumers’ experiences in the sale and financing of motor vehicles at dealerships. The roundtable will be held in San Antonio, Texas, on August 2-3, 2011, and will cover topics regarding military consumers’ experiences in buying and financing motor vehicles, the role of financial literacy in consumers’ understanding of that process, and fair lending issues.The Federal Trade Commission will host its second roundtable to gather information on consumers’ experiences in the sale and financing of motor vehicles at dealerships. The roundtable will be held in San Antonio, Texas, on August 2-3, 2011, and will cover topics regarding military consumers’ experiences in buying and financing motor vehicles, the role of financial literacy in consumers’ understanding of that process, and fair lending issues.

The FTC held its first roundtable on consumer protection issues involving dealership sales and financing of cars, SUVs, and light trucks, in Detroit in April 2011. A third roundtable is expected to be held in the coming months.

The FTC release states “Buying or leasing a car is among the most expensive transactions that many consumers make. Financing obtained at a dealership may provide benefits for many consumers, such as convenience, special manufacturer-sponsored programs, access to a variety of banks and financial entities, or access to credit otherwise unavailable to a buyer. Dealer-arranged financing, however, can be a complicated, opaque process and could potentially involve unfair or deceptive practices.”

The roundtable will be held at St. Mary’s University School of Law, Classroom Building, One Camino Santa Maria, San Antonio, Texas. The first day will cover the issues of military consumers and financial literacy; the second day will cover fair lending. The roundtable is free and open to the public.

Pre-registration is not required but is encouraged to help staff plan the event. Details can be found at http://www.ftc.gov/bcp/workshops/motorvehicles/. The FTC will offer a live webcast of the event. The Commission staff will identify and invite people with relevant expertise to participate and may invite others to participate who have submitted requests. Those who want to be panelists at the roundtable may e-mail their name and affiliation toMotorVehicleRoundtables2@ftc.gov, on or before July 15, 2011.

The term “debt collector” includes any person who uses interstate commerce or the mail in any business, the principal purpose of which is the collection of debts. Remember also that under the Fair Debt Collection Practices Act:  1) Courts apply a least sophisticated consumer standard to analyze protections under the Act;  2) the Act provides for explicit consumer rights including the right to have the debt verified and 3) FTC rules prohibit creditors from using confessions of judgment, and from requiring the debtor to waive any protections they are entitled to under the law.

For Release: 05/28/2010

At the request of several Members of Congress, the Federal Trade Commission is further delaying enforcement of the “Red Flags” Rule through December 31, 2010, while Congress considers legislation that would affect the scope of entities covered by the Rule. Today’s announcement and the release of an Enforcement Policy Statement do not affect other federal agencies’ enforcement of the original November 1, 2008 deadline for institutions subject to their oversight to be in compliance.

“Congress needs to fix the unintended consequences of the legislation establishing the Red Flags Rule – and to fix this problem quickly. We appreciate the efforts of Congressmen Barney Frank and John Adler for getting a clarifying measure passed in the House, and hope action in the Senate will be swift,” FTC Chairman Jon Leibowitz said. “As an agency we’re charged with enforcing the law, and endless extensions delay enforcement.”

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Dear Car Counselor, I heard there are new rules regarding using customer testimonials in ads, but I can’t find them. Can you give me a little help?

Not new Rules, but rather new updated interpretations of old ones. At the end of last year, the Federal Trade Commission approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act. The notice incorporated several changes to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. On a side note, prior to this the Guides were last updated in 1980.

FTC Guide For Consumers: Alternative Fuels and Alternative Fuel Vehicles

FTC Guide To Vehicle Repossessions

A Dealers Guide to the FTC Used Car Rule