The FTC announced that it intends to request public comment on the Preservation of Consumers' Claims and Defenses Rule, also known as the FTC Holder Rule. Under the rule, if a seller provides financing for the customer or refers the customer to a lender, the loan contract must include a notice that allows the consumer to assert claims or defenses against the lender or subsequent holder of the contract. The FTC specifically requests comment on (1) the economic impact of and continuing need for the rule, (2) possible conflict between the rule and other laws or regulations, and (3) the effect of any technological, economic, or other industry changes on the rule. Click here for a copy of the notice.
Alert March 09, 2010