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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

v.

TRICOLOR AUTO ACCEPTANCE, LLC, a 

limited liability company,

Defendant.

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Case No. 3:15-cv-3002-G

STIPULATED FINAL JUDGMENT AND ORDER FOR CIVIL PENALTIES, 

PERMANENT INJUNCTION, AND OTHER EQUITABLE RELIEF

Plaintiff, the United States of America, acting upon notification and authorization to the 

Attorney General by the Federal Trade Commission (“FTC” or “Commission”), filed its 

complaint, for civil penalties, permanent injunction and other equitable remedies in this matter, 

pursuant to Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act 

(“FTC Act”), 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); and Section 621(a) of the Fair 

Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681s(a).

Defendant has been represented by attorneys whose names appear hereafter. Defendant 

has waived service of the Summons and Complaint. Plaintiff and Defendant stipulate to the 

entry of this Stipulated Final Judgment and Order for Civil Penalties, Permanent Injunction, and 

Other Equitable Relief (“Order”) to resolve all matters in dispute in this action between them.

THEREFORE, IT IS HEREBY ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter. 

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2. The Complaint charges that Defendant participated in acts or practices in 

violation of Section 5 of the FTC Act, 15 U.S.C. § 45; the FCRA, 15 U.S.C. §§ 1681-1681x; the 

Duties of Furnishers of Information to Consumer Reporting Agencies (“Furnisher Rule”), 16 

C.F.R. § 660, issued pursuant to Section 623(e)(1) of the FCRA, 15 U.S.C. §1681s-2(e)(1), and 

recodified as Duties of Furnishers of Information, 12 C.F.R. § 1022, subpart E. 

3. Defendant neither admits nor denies any of the allegations in the Complaint, 

except as specifically stated in this Order. Only for purposes of this action, Defendant admits the 

facts necessary to establish jurisdiction. 

4. Defendant waives any claim that it may have under the Equal Access to Justice 

Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, 

and agrees to bear its own costs and attorney’s fees. 

5. The parties waive all rights to appeal or otherwise challenge or contest the 

validity of this Order. 

6. Defendant waives any claim it may have against the Commission, its employees, 

representatives, or agents that relate to the matter stated herein. 

7. Entry of this Order is in the public interest. 

DEFINITIONS

For purpose of this Order:

(a) “Defendant” shall mean Tricolor Auto Acceptance, LLC, and its successors and 

assigns. 

(b) The definitions set forth in the FCRA, 15 U.S.C. § 1681a, et seq., shall apply, 

including but not limited to: 

a. “Consumer” shall mean an individual.

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b. “Consumer Reporting Agency” or “CRA” shall mean any person which, for 

monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in 

whole or in part in the practice of assembling or evaluating consumer credit 

information or other information on consumers for the purpose of furnishing 

consumer reports to third parties, and which uses any means or facility of 

interstate commerce for the purpose of preparing or furnishing consumer reports. 

c. “Furnisher of Information” shall mean any person who regularly and in the 

ordinary course of business furnishes information to one or more consumer 

reporting agencies about the person’s transactions or experiences with any 

consumer. 

ORDER

I. PROHIBITED BUSINESS ACTIVITIES

IT IS ORDERED that Defendant, Defendant’s officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who received 

actual notice of this Order, whether acting directly or indirectly, are hereby permanently 

restrained and enjoined from:

A. failing to comply with 12 C.F.R. § 1022.42, a copy of which is attached as Attachment A, 

including by failing to establish and implement written policies and procedures regarding the 

accuracy and integrity of information relating to consumers that is furnished to any CRA; and 

B. failing to comply with 12 C.F.R. § 1022.43, a copy of which is attached as Attachment B, 

including by failing to reasonably or adequately investigate direct disputes about the accuracy of 

account balance information it furnishes to any CRA.

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II. MONETARY JUDGMENT FOR CIVIL PENALTY

IT IS FURTHER ORDERED that:

A. Judgment in the amount of eighty-two thousand seven hundred seventy-seven dollars 

($82, 777) is entered in favor of the Plaintiff against Defendant as a civil penalty pursuant 

to Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a). 

B. Defendant is ordered to pay to the Plaintiff by making payment to the Treasurer of the 

United States, eighty-two thousand seven hundred seventy-seven dollars ($82, 777), 

which, as Defendant stipulates, its undersigned counsel holds in escrow for no purpose 

other than payment to Plaintiff. Such payment must be made within seven (7) days of the 

entry of this Order by electronic fund transfer in accordance with instructions previously 

provided by a representative of Plaintiff. 

III. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that:

A. If Defendant is in default on any obligation under this Section, then the judgment amount, 

together with interest computed pursuant to 28 U.S.C. § 1961 from the date of default to 

the date of payment, minus any payments previously made pursuant to this Section, 

becomes immediately due.

B. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all 

assets transferred pursuant to this Order and may not seek the return of any assets. 

C. The facts alleged in the Complaint will be taken as true, without further proof, in any 

subsequent civil litigation by or on behalf of the Commission, including in a proceeding 

to enforce its rights to any payment or monetary judgment pursuant to this Order.

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D. Defendant acknowledges that its Taxpayer Identification Numbers (Social Security 

Numbers or Employer Identification Numbers), which Defendant must submit to the 

Commission, may be used for collecting and reporting on any delinquent amount arising 

out of this Order, in accordance with 31 U.S.C. § 7701. 

IV. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt of this 

Order: 

A. Defendant, within 7 days of entry of this Order, must submit to the Commission an 

acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For 5 years after entry of this Order, Defendant must deliver a copy of this Order to: (1) 

all principals, officers, directors, and LLC managers and members; (2) all employees, 

agents, and representatives who participate in conduct related to the subject matter of the 

Order; and (3) any business entity resulting from any change in structure as set forth in 

the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of 

this Order for current personnel. For all others, delivery must occur before they assume 

their responsibilities. 

C. From each individual or entity to which Defendant delivered a copy of this Order, 

Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of 

this Order. 

V. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendant make timely submissions to the 

Commission:

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A. One year after entry of this Order, Defendant must submit a compliance report, sworn 

under penalty of perjury. 

1. Defendant must: (a) identify the primary physical, postal, and email address and 

telephone number, as designated points of contact, which representatives of the 

Commission and Plaintiff may use to communicate with Defendant; (b) identify 

all of Defendant’s businesses by all of their names, telephone numbers, and 

physical, postal, email, and Internet addresses; (c) describe the activities of each 

business, including the products and services offered, the means of advertising, 

marketing, and sales; (d) describe in detail whether and how Defendant is in 

compliance with each Section of this Order; and (e) provide a copy of each Order 

acknowledgment obtained pursuant to this Order, unless previously submitted to 

the Commission.

B. For 20 years following entry of this Order, Defendant must submit a compliance notice, 

sworn under penalty of perjury, within 14 days of any change in the following:

1. Defendant must report any change in: (a) any designated point of contact; or (b) 

the structure of Defendant or any entity that the Defendant has any ownership 

interest in or controls directly or indirectly that may affect compliance obligations 

arising under this Order, including: creation, merger, sale, or dissolution of the 

entity or any subsidiary, parent, or affiliate that engages in any acts or practices 

subject to this Order. 

C. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, 

insolvency proceeding, or similar proceeding by or against such Defendant within 14 

days of its filing. 

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D. Any submission to the Commission required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: “I declare under penalty of perjury under the laws of the United States of 

America that the foregoing is true and correct. Executed on: ______” and supplying the 

date, signatory’s full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, all submissions to 

the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by 

overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue 

NW, Washington, DC 20580. The subject line must begin: FTC v. Tricolor Auto 

Acceptance, LLC (1423073). 

VI. RECORDKEEPING PROVISIONS

IT IS FURTHER ORDERED that Defendant must create certain records for 20 years 

after entry of this Order, and retain each such record for 5 years. Specifically, in connection with 

furnishing information to any CRA, and receiving and investigating direct disputes related to 

Consumer Reports, Defendant must create and retain the following records: 

A. accounting records showing the revenues from all goods or services sold; 

B. personnel records showing, for each person providing services, whether as an employee 

or otherwise, that person’s: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for termination; 

C. all employee training materials; 

D. customer files showing the names, addresses, telephone numbers, dollar amounts paid, 

and the quantity and description of goods or services purchased; 

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E. records of all consumer complaints and refund requests, whether received directly or 

indirectly, such as through a third party, and any response; 

F. all records necessary to demonstrate full compliance with each provision of this Order, 

including but not limited to:

1. all acknowledgments of receipt of this Order, required by the section titled “Order 

Acknowledgments”; and

2. all reports submitted to the FTC pursuant to the Section titled “Compliance 

Reporting.”

VII. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for purposes of monitoring Defendant’s compliance 

with this Order:

A. Within 14 days of receipt of a written request from a representative of the Commission, 

Defendant must: submit additional compliance reports or other requested information, 

which must be sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Commission and Plaintiff are also authorized 

to obtain discovery, without further leave of court, using any of the procedures prescribed 

by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 

36, 45, and 69. 

B. For matters concerning this Order, the Commission and Plaintiff are authorized to 

communicate directly with the Defendant. Defendant must permit representatives of the 

Commission and Plaintiff to interview any employee or other person affiliated with

Defendant who has agreed to such an interview. The person interviewed may have 

counsel present. 

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C. The Commission and Plaintiff may use all other lawful means, including posing, through 

its representatives as consumers, suppliers, or other individuals or entities, to Defendant 

or any individual or entity affiliated with Defendant, without the necessity of 

identification or prior notice. Nothing in this Order limits the Commission’s lawful use 

of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 

57b-1. 

VIII. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order.

IX. COSTS AND ATTORNEYS’ FEES

IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys’ 

fees incurred in connection with this action.

The parties hereby stipulate to entry of the foregoing Order, which shall constitute a final 

Order in this action.

IT IS SO ORDERED this ______ day of ________ , 2015.

___________________________________

JUDGE A. JOE FISH

United States District Judge

Northern District of Texas

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SO STIPULATED AND AGREED: 

FOR PLAINTIFF, THE UNITED STATES 

OF AMERICA 

JOHN R. PARKER 

United States Attorney 

LISA R. HASDA Y 

Assistant United States Attorney 

Northern District of Texas 

11 00 Commerce Street, Third Floor 

Dallas, TX 75242 

Telephone: (214) 659-8737 

Facsimile: (214) 659-8807 

Email: Lisa.Hasday@usdoj.gov 

BENJAMIN C. MIZER 

Principal Deputy Assistant Attorney General 

Civil Division 

JONATHAN F. OLIN 

Deputy Assistant Attorney General 

MICHAELS. BLUME 

Director 

Consumer Protection Branch 

ANDREW E. CLARK 

Assistant Director 

KERALA T. COWART 

California Bar No. 284519 

Trial Attorney 

Consumer Protection Branch 

U.S. Department of Justice 

P.O. Box 386 

Washington, DC 20044 

Telephone: (202) 353-3881 

Facsimile: (202) 514-8742 

Email: Kerala.T.Cowart@usdoj.gov 

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FOR THE FEDERAL TRADE COMMISSION: 

_J;l~k&~ MANEESHA MITHAL ~ Associate Director 

Divisi.on ofPrivacy and Identity Protection 

Assistant Director 

Division of Privacy and Identity Protection 

__ .......... 

DAVID LINCICUM 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

600 Pennsylvania A venue, NW 

Washington, D.C. 20580 

Tel: (202) 326-2773 

Fax: (202) 326-3062 

Email: dlincicum@ftc.gov 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

600 Pennsylvania Avenue, NW 

Washington, D.C. 20580 

Tel: (202) 326-2884 

Fax: (202) 326-3062 

Email: jconnor@ftc.gov 

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FOR DEFENDANT: 

11/ ?~t·vil (JL,"lv MAURICIO DELGA 0 I 

Chief Executive Officer 

TRICOLOR AUTO ACCEPTANCE, LLC 

,/·;~!(~ MICHAEL A. BENOIT 

MICHAEL A. GOODMAN 

ALLEN H. DENSON 

Counsel for TRICOLOR AUTO ACCEPTANCE, LLC 

Hudson Cook, LLP 

I 020 19'h Street, NW 

7'h Floor 

Washington, D.C. 20036 

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