How long does a dealership have to send an adverse action notice?

30 days after receiving a completed credit application, under ECOA/Regulation B (12 C.F.R. 1002.9). The notice must state the specific principal reasons for the denial or tell the applicant they have the right to request them.

What happens if a dealer sells a used car without an FTC Buyers Guide?

Each missing or incomplete Buyers Guide can draw an FTC civil penalty of up to $53,088 per violation. The Guide must be displayed prominently on the vehicle before it is offered, a Spanish version is required for deals conducted in Spanish, and its terms override the sales contract if they conflict.

Do NJ dealerships have to report data breaches to the FTC?

Yes. Since May 13, 2024, the amended GLBA Safeguards Rule requires dealers to notify the FTC no later than 30 days after discovering a breach involving unencrypted customer information of 500 or more consumers — on top of any New Jersey state notification duties.

NJ Dealership F&I Compliance Guide (2026)

Q: Is there a cap on dealer doc fees in New Jersey?

No. New Jersey sets no dollar cap (the average is about $714, seventh highest in the U.S.), but the fee is heavily regulated: it cannot be described as required by any government entity, it must be itemized service-by-service in at least 10-point type on the sale document (N.J.A.C. 13:45A-26B.3), and it must be included inside any advertised price.

Q: Does New Jersey require dealers to warranty used cars?

Yes. Under the NJ Used Car Lemon Law, licensed dealers must give a written warranty: 90 days or 3,000 miles for vehicles with 24,000 miles or less; 60 days or 2,000 miles for 24,001–60,000 miles; 30 days or 1,000 miles for 60,000–100,000 miles. A written waiver is only permitted on vehicles with more than 60,000 miles.

What federal rules apply at a New Jersey F&I desk?

Six federal regimes touch every deal jacket, whether the store is on Route 1 or Route 22:

1. OFAC screening. Every buyer and co-buyer gets screened against the Specially Designated Nationals list before the deal funds. Sanctions violations are strict liability — intent doesn't matter — and the maximum civil penalty is $377,700 per violation or twice the transaction value, whichever is greater (2025 inflation-adjusted figure, unchanged for 2026). Blocked or rejected transactions must be reported to OFAC within 10 business days, and sanctions-related records now keep for 10 years, up from five.

2. The Red Flags Rule. Dealers are "creditors" under FACTA, which means a written Identity Theft Prevention Program — approved by ownership or a designated senior manager, with staff training and vendor oversight. Knowing FCRA violations run up to $4,983 each (the old "$3,500" figure still circulating in trade articles is outdated).

3. Truth in Lending (Reg Z). Before signing, the customer gets the segregated federal box: APR, finance charge, amount financed, total of payments, payment schedule — grouped together, free of clutter (12 C.F.R. 1026.17–18). Individual TILA suits carry statutory damages up to $1,000 on auto paper plus attorney's fees; class actions cap at the lesser of $1 million or 1% of net worth.

4. ECOA / Regulation B. A completed credit application starts a 30-day clock for notice of action taken. Adverse action notices must state specific reasons — or the right to request them. Punitive exposure runs to $10,000 per individual action.

5. The GLBA Safeguards Rule. Any dealer arranging financing or leases is a "financial institution": written information-security program, a named Qualified Individual, MFA, encryption, vendor oversight, incident-response plan, and annual reporting to ownership. Since May 13, 2024, breaches of unencrypted data affecting 500+ consumers must be reported to the FTC within 30 days.

6. The FTC Used Car Rule. A completed Buyers Guide on every used unit before it's offered — both sides visible, Spanish version for Spanish-language deals — and the Guide's terms override the contract if they conflict. Up to $53,088 per violation.

What New Jersey adds on top

The Consumer Fraud Act is the state's hammer. Private plaintiffs who prove an ascertainable loss get mandatory treble damages plus attorney's fees (N.J.S.A. 56:8-19). The Attorney General adds civil penalties of $10,000 for a first offense and $20,000 for each one after. This is not theoretical: an NJ trial court hit one dealer with over $10 million for 500+ CFA violations, and the Division of Consumer Affairs settled with six dealerships for ~$260,000 in December 2022 — including one cited specifically for charging a doc fee without itemizing the service.

Advertising (N.J.A.C. 13:45A-26A). Every advertised price must include all costs except tax and registration/licensing — meaning the doc fee lives inside the advertised number. Bait advertising, invoice-price comparisons, and "wholesale/no profit" claims are unlawful.

Doc fees (N.J.A.C. 13:45A-26B.3). No dollar cap, but two hard rules: never present the fee as government-required, and never charge it without itemizing each specific documentary service and its price, in writing, in at least 10-point type, on the sale document. Full breakdown in our NJ doc fee guide.

The Used Car Lemon Law. NJ dealers must give written warranties on used vehicles: 90 days/3,000 miles (≤24,000 miles), 60 days/2,000 miles (24,001–60,000), 30 days/1,000 miles (60,000–100,000). Written waivers are only permitted above 60,000 miles.

Dealer licensing (N.J.S.A. 39:10-19). An MVC license and an established place of business where the books live — with fines and cease-and-desist authority behind it.

The desk-level checklist

Every deal	Rule	Max exposure
OFAC screen buyer + co-buyer before funding	31 C.F.R. Part 501	$377,700/violation, strict liability
Red flags check per the written ITPP	16 C.F.R. Part 681	$4,983/knowing violation
TILA box — segregated, before signing	12 C.F.R. 1026.17–18	2× finance charge + fees
Adverse action within 30 days, specific reasons	12 C.F.R. 1002.9	$10,000 punitive/individual
Buyers Guide on every used unit	16 C.F.R. Part 455	$53,088/violation
Doc fee itemized, 10-pt type, never "state-required"	N.J.A.C. 13:45A-26B.3	CFA treble damages + $10–20K
Advertised price honored, all-in except tax/reg	N.J.A.C. 13:45A-26A	CFA treble damages + $10–20K
Used-car warranty tier applied or lawful waiver	NJ Used Car Lemon Law	CFA exposure

The operating principle behind all of it: the jacket should read the same to an auditor as it did to the customer. Menu to 100% of customers, e-contract plus ink, and stips handled before delivery isn't just funding discipline — it's the compliance record.

Questions dealers ask

Is there a cap on dealer doc fees in New Jersey?

No cap — the average is about $714, seventh highest in the U.S. — but the fee must be itemized service-by-service in at least 10-point type on the sale document, can never be described as government-required, and must sit inside any advertised price. Details: NJ doc fee rules.

Does New Jersey require dealers to warranty used cars?

Yes — written warranty tiers by mileage: 90 days/3,000 miles (≤24,000 miles), 60/2,000 (24,001–60,000), 30/1,000 (60,000–100,000). Waivers only above 60,000 miles, in writing.

How long do we have to send an adverse action notice?

30 days from a completed application (12 C.F.R. 1002.9), with the specific principal reasons or the right to request them.

Do NJ dealerships report data breaches to the FTC?

Yes — since May 13, 2024, within 30 days of discovering a breach of unencrypted customer information affecting 500+ consumers, on top of state notice duties.

Sources

OFAC penalties & reporting: home.treasury.gov (2025 CMP adjustment) · ofac.treasury.gov/faqs/topic/1606
Red Flags Rule: ftc.gov/business-guidance — "Fighting Identity Theft" · FCRA penalties: govinfo.gov FR-2025-01-17
TILA/Reg Z: consumerfinance.gov/rules-policy/regulations/1026/18 · 15 U.S.C. 1640
ECOA/Reg B: law.cornell.edu/cfr/text/12/1002.9 · 15 U.S.C. 1691e
Safeguards Rule: ftc.gov — Automobile Dealers Safeguards FAQs · 2023 breach-notice amendment
Used Car Rule: ftc.gov — Dealer's Guide to the Used Car Rule
NJ CFA: N.J.S.A. 56:8-13, 56:8-19 (njconsumeraffairs.gov) · NJ advertising/doc fee regs: N.J.A.C. 13:45A-26A & 26B (law.cornell.edu)
NJ used-car warranty tiers: njconsumeraffairs.gov Used Car Lemon Law brief · Dealer licensing: N.J.S.A. 39:10-19
Enforcement: njoag.gov Dec. 15, 2022 settlements · regulatoryoversight.com (2026) on the $10M CFA case

Written by James Lopez — automotive Finance & Business Manager in Central New Jersey. Seven-plus years running NJ desks, lease and retail: menu to 100%, e-contract plus ink, funded in days, and audits that come back boring. See how the desk runs →

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This guide is general information for dealership professionals, not legal advice. Regulations and penalty figures change; verify current requirements with counsel, NJ CAR, or the cited agencies before relying on them.