Comments on Holder Rule due
The Federal Trade Commission will be conducting a systematic review of the Holder Rule and is seeking public comment on the efficiency, costs, benefits, and impact of the Rule, which protects the rights of consumers who make a purchase using credit obtained through a merchant. The Rule, formally called the "Trade Regulation Rule Concerning Preservation of Consumers' Claims and Defenses," protects consumers when merchants sell a consumer’s credit contract to other lenders. Specifically, it preserves consumers' right to assert the same legal claims and defenses against anyone who purchases a credit contract that they would have against the seller who originally provided the credit. Under the Rule, consumers can cite a seller's misconduct in order to defend themselves against a creditor's lawsuit for money owed under a contract, or to seek a refund of money they have paid under the contract. The Commission will accept comments on the Rule through February 12, 2016.