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  • Decision Of August 7, 1998 The Official Website Of The Office Of Consumer Affairs &amp

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Sinesses For Licensees For Government Home Business Banking Industry Services Banking Legal Resources Opinions and Decisions 1998 Decisions of the Commissioner of Banks and Board of Bank Incorporation Decision of August 7, 1998 SEARCH Office of Consumer Office of Consumer Affairs Affairs Search Search Decision relative to the merger of Woburn National Bank, Woburn, Massachusetts with and into Citizens Bank of Massachusetts, Boston, Massachusetts RELATED LINKS Division of Ban.

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§433.2. Under the Holder Rule, any holder of a consumer credit contract is subject to the same claims and defenses that the consumer could assert against the seller to the extent the consumer has paid on the debt.

Regulation Overview The Holder-in-Due-Course Rule prohibits a seller from taking or receiving a consumer credit contract that does not contain a prescribed notice which preserves the consumer's claims and defenses in the event that the contract is negotiated or assigned to a third party creditor.

ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

Ambiguously, the Rule applies to a “sale or lease,” but only to “consumer credit contracts” which are defined to exclude leases. Unlike the 1970's, automobile leases now are a major concern, but courts find the Rule does not apply to them.

Part 433), sometimes called the Holder- in-Due-Course Rule (Rule), is to ensure that consumer credit contracts used in financing the retail purchase of consumer goods or services specifically preserve the consumer's rights against the seller.

The Holder Rule is a regulation issued by the FTC that allows consumers to bring any legal claims against the “holder” of a retail installment sales contract or other credit contract that it could assert against the original seller of the good or service, even if the claim springs from the seller's misconduct alone.

August 2022. ConsumerAffairs is an American customer review and consumer news platform that provides information for purchasing decisions around major life changes or milestones.

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.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232