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On April 17th, the CFPB issued a consent order to a for-profit training school alleging numerous violations of law related to its use if income share agreements (“ISAs”). According to the Bureau, BloomTech, Inc. (“BloomTech”) and the company’s founder and CEO engaged in deceptive and abusive acts or practices, violated the Truth in Lending Act (“TILA”) and Regulation Z, and violated the Federal Trade Commission’s (“FTC”) Holder Rule.… Continue Reading

The California Supreme Court has ruled in Pulliam v. HNL Automotive Inc. that the FTC Holder Rule’s limit on a consumer’s “recovery” to the “amounts paid by the debtor” under the contract does include the consumer’s attorney’s fees where a buyer seeks fees from a holder under a state prevailing party statute. … Continue Reading

The FTC has issued an advisory opinion that addresses the impact of its Holder Rule on the ability of consumers to recover attorney’s fees and costs.

Officially titled the “Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses,” the Holder Rule requires sellers that arrange for or offer credit to finance the purchase of consumer goods or services to include (or require the lender to include) a specified “holder notice” in the credit contract. … Continue Reading

The American Bankers Association, American Financial Services Association, California Financial Services Association, and Consumer Bankers Association have filed a joint amicus brief with the California Supreme Court in Pulliam v. HNL Automotive Inc., a case with significant implications for the amount of money a plaintiff can recover when proceeding against a dealer/seller under the FTC Holder Rule.… Continue Reading

The California Supreme Court recently agreed to hear an appeal in Pulliam v. HNL Automotive Inc., a case with significant implications for the amount of money a plaintiff can recover when proceeding against a dealer/seller under the FTC Holder Rule.   

Officially titled the “Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses,” the Holder Rule requires sellers that arrange for or offer credit to finance the purchase of consumer goods or services to include a specified “holder notice” in the credit contract. … Continue Reading

Almost 45 years after the FTC’s Holder Rule and corresponding FTC staff guidance were issued, the FTC has issued a “staff note” in which FTC staff concludes that the TILA exemption for large transactions does not apply to the FTC’s Holder Rule (which is officially titled the “Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses”). … Continue Reading

The FTC has published a notice in the Federal Register announcing that it has decided to retain its Holder Rule without modification.  The FTC stated in the notice that it received 19 comments, all of which urged retaining the rule.

As part of a systematic review of all of its rules and guides, the FTC sought public comment on the Holder Rule in November 2015, including the rule’s efficiency, costs and benefits, and impact. … Continue Reading

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.… Continue Reading

On May 3, the Federal Trade Commission issued an advisory opinion interpretating its Holder Rule (officially titled the Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses). The Holder Rule provides protection for consumers who obtain credit from a seller or seller-arranged credit to finance the purchase of goods or services.… Continue Reading