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SCOTUS will not review Supreme Court’s pro-consumer Holder Rule opinion

January 9, 2023

The Supreme Court last May held in Pulliam v. HNL Automotive Inc. (2022) 13 Cal.5th 127 that a Federal Trade Commission rule allowing a consumer to sue not only the seller of defective goods but also the third-party holder of a credit contract on the sale does not prevent the consumer from getting attorney fees from the creditor. The court held that a limit written into the so-called Holder Rule doesn’t negate an attorney fees provision in California’s Song-Beverly Consumer Warranty Act, commonly known as the “lemon law.”

The U.S. Supreme Court today denied the certiorari petition filed by TD Bank, the holder of the consumer credit contract in the case. (See TD Bank, N.A. v. Pulliam.)

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