(a) Person. An individual, corporation, or any other business organization.
(b) Consumer. A natural person who seeks or acquires goods or services for personal, family, or household use.
(c) Creditor. A person who, in the ordinary course of business, lends purchase money or finances the sale of goods or services to consumers on a deferred payment basis; Provided, such person is not acting, for the purposes of a particular transaction, in the capacity of a credit card issuer.
(d) Purchase money loan. A cash advance which is received by a consumer in return for a “Finance Charge” within the meaning of the Truth in Lending Act and Regulation Z, which is applied, in whole or substantial part, to a purchase of goods or services from a seller who (1) refers consumers to the creditor or (2) is affiliated with the creditor by common control, contract, or business arrangement.
(e) Financing a sale. Extending credit to a consumer in connection with a “Credit Sale” within the meaning of the Truth in Lending Act and Regulation Z.
(f) Contract. Any oral or written agreement, formal or informal, between a creditor and a seller, which contemplates or provides for cooperative or concerted activity in connection with the sale of goods or services to consumers or the financing thereof.
(g) Business arrangement. Any understanding, procedure, course of dealing, or arrangement, formal or informal, between a creditor and a seller, in connection with the sale of goods or services to consumers or the financing thereof.
(h) Credit card issuer. A person who extends to cardholders the right to use a credit card in connection with purchases of goods or services.
(i) Consumer credit contract. Any instrument which evidences or embodies a debt arising from a “Purchase Money Loan” transaction or a “financed sale” as defined in paragraphs (d) and (e) of this section.
(j) Seller. A person who, in the ordinary course of business, sells or leases goods or services to consumers.
[40 FR 53506, Nov. 18, 1975]
Notes of Decisions
Johnson v. Long Beach Mortg. Loan Trust 2001-4, 451 F. Supp. 2d 16 (D.D.C. 2006).
· cites it 4× “Pursuant to 16 C.F.R. § 433.1 (i), a “Consumer credit contract” is defined as any instrument which evidences a debt arising from either (1) a cash advance received by the consumer which is applied to a purchase of goods or services from a seller affiliated with the creditor, or…”
Morgan v. Markerdowne Corp., 976 F. Supp. 301 (D.N.J. 1997).
· cites it 3× “5 See 16 C.F.R. § 433.1 , et. seq. Plaintiff asserts that her student loan contracts are void for failure to include the notice of claims and defenses required by the FTC Holder Rule.”
Gen. Motors Acceptance Corp. v. Daniels, 377 So. 2d 346 (La. 1979).
“[1] 16 C.F.R. 433.1 provides that the following notice must appear in the text of any consumer credit contract: "NOTICE 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…”
Brown v. Courtesy Consum. Disc. Co. (In Re Brown), 134 B.R. 134 (Bankr. E.D. Pa. 1991).
· cites it 2× “We are supported in our result by the creditor’s apparent admission of the application to this transaction of a federal Regulation preserving consumer defenses in transactions where a seller refers consumers to creditors, 16 C.F.R. § 433.1 , et seq. (referred to as “the HDC Reg.”
Jennifer Kerr v. Vatterott Educ. Centers, Inc., 439 S.W.3d 802 (Mo. Ct. App. 2014).
“She relies on the Federal Trade Commission (FTC) Consumer Notice mentioned in Paragraph 16 of Vatterott’s enrollment contract, which states: Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of…”
Fed. Trade Comm'n v. IFC Credit Corp., 543 F. Supp. 2d 925 (N.D. Ill. 2008).
“For example, in the Holder Rule, 16 C.F.R. § 433.1 (b), consumer is defined as “a natural person who seeks or acquires *940 goods or services for personal, family, or household use.”
Vietnam Vets. of Am., Inc. v. Guerdon Indus., Inc., 644 F. Supp. 951 (D. Del. 1986).
“the sole basis of liability alleged with respect to the financial defendants is that, as holders of the financing agreements entered into by plaintiffs and retail mobile home dealers, the financial defendants are subject to all claims plaintiffs could assert against the retail…”
DeLeon v. Beneficial Constr. Co., 998 F. Supp. 859 (N.D. Ill. 1998).
· cites it 2× “which proves- that no business arrangement as contemplated by 16 C.F.R. § 433.1 exists here” (Plf.Resp.”
Home Sav. Ass'n Serv. Corp. v. Martinez, 788 S.W.2d 52 (Tex. App. 1990).
· cites it 2× “They argue that this was an incorrect statement because under 16 C.F.R. § 433.1 et seq., they were entitled to assert any rights against Home that they could assert against Gershenson.”
— 16 C.F.R. § 433.1(d) — 1 case
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