Unfair and Deceptive Acts and Practices: 2.2.1.6 Derivative Liability Under FTC Holder Rule Regardless of UDAP Statute’s Coverage
Even if a UDAP statute exempts creditors, this should only insulate creditors from UDAP liability for their own misconduct. The FTC’s Holder Rule subjects assignees and related creditors to claims and defenses, including UDAP claims, that arise from the seller’s misconduct.395 The fact that the creditor is exempt from the UDAP statute has no bearing on its derivative liability for UDAP claims against the seller.396