In a Federal Register notice on December 1, 2015, the Federal Trade Commission announced that it is undertaking a review of its Trade Regulation Rule concerning the Preservation of Consumers’ Claims and Defenses (commonly referred to as the “Holder Rule”). As part of the process, the FTC is soliciting public input on the efficacy, economic impact, and other aspects of the Rule.
The Holder Rule is one of a number of the FTC’s Trade Practice Rules that the CFPB intends to enforce against entities subject to its jurisdiction. As such, despite the lack of direct FTC jurisdiction over depository institutions, banks subject to CFPB enforcement authority may wish to consider submitting comments.
More information regarding the FTC’s notice can be found in our legal alert.