The Federal Trade Commission (FTC) Rule on Preservation of Consumers’ Claims and Defenses applies to state and federal credit unions. This rule, which is frequently referred to as “The Holder-in-Due-Course rule,” affects credit unions that provide financing to consumers when they purchase property:
- From the credit union, or
- From a member who refers customers to the credit union or who has a formal or informal contract or business arrangement with the credit union.