FTC's Preservations of Claims and Defenses

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Question:

When would we use FTC's Notice "Preservation of Consumer Claims and Defenses" and where do I find the regulation on this?

Answer:

It's been an awfully long time since I've heard anything about this rule. However, it needs to be on any consumer loan agreement that you purchase from a retailer (indirect auto loans, for example), and on any loan contract where the proceeds will go to a retailer with whom you have a business arrangement, for the purchase of consumer goods.

The rule is so old that the FTC doesn't have it on their own Website. But you can find a copy beginning on page 7162 of the FDIC's Rules and Regulations series. Or, use this link: http://www.fdic.gov/regulations/laws/rules/65002600.html and then search for the word "preface" using your browser.

First published on BankersOnline.com 6/3/02