Danielle Patterson

Jul 16, 2024 | mondaq.com | Michael Chase |Danielle Patterson

Before Grayot v. Bank of Stockton, no published California case answered the question of whether a lender can assign-back a consumer credit contract to a seller to avoid liability under the Federal Trade Commission's Holder Rule. In Grayot, the Third Appellate District held that the holder of a contract may not avoid liability for claims that arose while it held the contract by later reassigning the contract.