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FTC Holder Rule --16 C.F.R. § 433.2(a)

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In Lafferty v. Wells Fargo Bank, N.A., 2018 WL 3470748, at *2 (Cal.App. 3 Dist., 2018), the Court of Appeal held: We conclude the Laffertys are limited under the plain meaning of the Holder Rule to recovering no more than the $68,000 they paid under terms of the loan with Wells Fargo. Consistent with Lafferty I, we continue to “hold—to… Read More

In Duran v. Quantum Auto Sales, Inc., 2017 WL 6334220, at *5 (Cal.App. 4 Dist., 2017), the Court of Appeal held in an unpublished decision held that the FTC Holder Rule does not limit attorneys' fees but the Plaintiff's recovery against the Holder is limited to those fees/costs that resulted from litigation of claims against it. We therefore turn to Veros's alternative… Read More

In Duran v. Quantum Auto Sales, Inc., 2017 WL 6333871, at *8 (Cal.App. 4 Dist., 2017), the Court of Appeal held in an unpublished decision that a car dealer's Benson-tender did not insulate the dealer from liability. In this case, Quantum's pre-litigation offer went far beyond a willingness to take corrective action as contemplated by the drafters of the CLRA. We… Read More

In Hemmings v. Camping Time RV Centers, LLC, 2017 WL 4552896, at *8 (N.D.Ga., 2017), Judge Thrash dismissed independent Holder Rule claims against the holder of an RISC for an RV because the FTC Holder Rule only subjects the holder to claims that can brought against the seller. Next, Bank of America argues that the Plaintiff's FTC Holder Rule claim should be… Read More

In Medina v. South Coast Car Company, 2017 WL 4128076, at *8 (Cal.App. 4 Dist., 2017), the Court of Appeal held that a settlement agreement entitling Plaintiff to attorneys' fees was not capped by the FTC Holder Rule. In light of the Settlement and section 5, which, the parties agreed, made Medina the “prevailing party,” it is clear from the plain… Read More

In Tun v. Wells Fargo Bank, the California Court of Appeal found that the Trial Court did not err in finding, pre-trial in limine, that an Automobile RISC Holder's tender to the Court of money under Civil Code 2983.4 did not constitute an "admission of liability".  When the Trial Court, despite a defense verdict in favor of the Dealer and the… Read More

In Harold v. TMC Enterprises, LLC, 2016 WL 6069023 (W.D. Va. 2016), Judge Moon held that a car buyer adequately pleaded a TILA violation due to an inflated purchase price of the vehicle where the buyer also alleged that the finance price of a vehicle is higher than its cash price. Plaintiff asserts that Defendants violated the TILA by failing… Read More

In Wait v. Roundtree Mobile, LLC, 2015 WL 6964668, at *8-9 (S.D.Ala., 2015), Judge Granade  granted summary judgment to an auto finance company under the FTC Holder Rule. In the motion for summary judgment, BMW claims that “[b]oth the FTC Holder Rule as well as the explicit terms of the Contract provide that recovery by the Debtor shall not exceed amounts paid… Read More

In Lafferty v. Wells Fargo Bank, 2015 WL 1383659 (Cal.App. 3 Dist. 2015), the California Court of Appeal found the FTC Holder Rule did not deprive a holder of a RISC of the opportunity to defend itself merely because the automobile purchaser had obtained a default judgment against the selling dealer. The Laffertys argue they are necessarily already the prevailing party because… Read More

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