Consumer Credit Fairness

Close the loophole that lets predatory sellers launder fraud through third-party lenders by enforcing the federal Holder Rule.

The Problem

Federal law requires that consumer financing contracts include language preserving the borrower's right to raise defenses against the lender if the seller defrauded them. Many companies — especially in the solar and home improvement industries — routinely omit this required language. Georgia courts have not clearly specified what remedy consumers have.

The Solution

Codify that when the required notice is missing, it is deemed included by operation of law
Make a lender's attempt to collect on a non-compliant contract a per se violation of Georgia consumer protection law
Provide a private right of action with attorney's fees
Apply these protections to solar, home improvement, and auto financing

Why It Matters

Predatory sellers deliberately separate the sale from the financing to strip consumers of their legal defenses. Georgia should make clear this tactic will not work.

Talking Points

Federal law has required Holder Rule notices in consumer contracts for decades — many companies just ignore it.
When a seller commits fraud and then assigns the loan to a bank, the consumer gets left holding the debt with no recourse against anyone.
Georgia should codify that missing the required Holder Rule notice means it's deemed included by law — removing the incentive to omit it.
This is especially important in solar financing, where consumers are locked into 20-year loans for systems that don't deliver what was promised.
A private right of action with attorney's fees is the only way consumers can actually enforce this protection.

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