In the Matter of Holder Rule Review, FTC File No.P164800; Docket No. HHS--OPHS--2015--0008
The Holder Rule is weakened to the point of uselessness to the extent it limits the consumer's remedy to amounts the consumer has paid. Consequential damages and attorney fees almost always dwarf the amount the consumer has paid, so limiting liability of the holder to the amount the consumer has paid means the consumer is left with no meaningful recourse. The Holder Rule should be modified to expressly provide that the holder is liable to the consumer for all actual damages proximately caused by the prior holders and original seller, including consequential and incidental damages, as well as attorney fees incurred by the consumer, so long as those remedies would be available to the consumer against prior holders and/or the original seller. This modification is entirely fair because it merely affords the consumer the same remedies the consumer would have if the agreement were retained by the original seller, and the holder is simply in the place of its predecessor(s) in interest, which is exactly what an assignment should mean (and which is really the purpose of the holder rule).