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Holder-in-Due Course

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In Timmons v. SunTrust Bank, No. A19A1262, 2019 Ga. App. LEXIS 547, at *1-6 (Ct. App. Oct. 9, 2019), the Georgia Court of Appeals held that an auto finance lender was not a holder-in-due-course, but instead was subject to the FTC Holder Rule contained in the RISC. [O]n July 9, 2015, the Plaintiffs purchased a 2015 GMC Sierra from the… Read More

On July 12, the Governor chartered AB 1821, which seeks to overturn Lafferty’s cap on the Holder Rule.  AB 1821 adds Civil Code 1459.5 to the Civil Code, which now states A plaintiff who prevails on a cause of action against a defendant named pursuant to Title 16, Part 433 of the Code of Federal Regulations or any successor thereto, or… Read More

As FY 2015 came to a close, the FTC asked for commentary on its Holder Rule for assignee liability.  Consumers and Industry responded in early 2016.  Three years in the making, the FTC finally responded, issuing its commentary today in the Federal Register, and it's first official commentary since the Rule was promulgated in 1975.  FTC Commentary on Holder Rule 5-2-19. … Read More

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In Duran v. Quantum Auto Sales, Inc., 2017 WL 6334220, at *5 (Cal.App. 4 Dist., 2017), the Court of Appeal held in an unpublished decision held that the FTC Holder Rule does not limit attorneys' fees but the Plaintiff's recovery against the Holder is limited to those fees/costs that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In Duran v. Quantum Auto Sales, Inc., 2017 WL 6333871, at *8 (Cal.App. 4 Dist., 2017), the Court of Appeal held in an unpublished decision that a car dealer's Benson-tender did not insulate the dealer from liability.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

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