2025 Pub. 7 Issue 2

CNCDA is proud to offer our members an updated version of our F&I Compliance Manual (now in its 8th Edition). This manual was created with careful insight and expertise from our association’s legal team, including counsel at Manning Leaver, and document support from Reynolds and Reynolds Document Services.

In 1970, the Legislature enacted the Consumers Legal Remedies Act (CLRA) in an effort to protect consumers from deceptive and unlawful business practices in transactions involving the sale or lease of goods or services. The CLRA prohibits about two dozen unfair or deceptive acts and practices, including falsely claiming a product has benefits or characteristics it does not have, misrepresenting the source or quality of goods or services, selling used goods as new, and making false advertising claims. In order to sue under the CLRA, a person must be a “consumer,” which is defined as one who “seeks or acquires, by purchase or lease, any goods or services for personal, family or household purposes.” Consequently, the CLRA does not apply to individuals who purchase or lease goods or services for business purposes. A plaintiff suing under the CLRA can seek actual damages for any monetary losses, an injunction prohibiting unlawful acts and practices, restitution of property and punitive damages. Consumers who purchase or lease vehicles frequently seek rescission (i.e. cancellation) of the contract which involves returning the vehicle and receiving a refund of their downpayment, monthly payments and a payoff of any outstanding loan on the vehicle. The CLRA allows for an additional award of up to $5,000 to senior citizens or disabled persons where certain conditions can be satisfied, including that they suffered substantial physical, emotional or economic damage. Notably, the CLRA explicitly provides attorneys’ fees to plaintiffs if they prevail on their claim. A plaintiff is considered the prevailing party on a CLRA claim when a “net monetary recovery” is obtained.