Treinen Law Office

What do you do if the contractor failed to get the required permits or inspections and did shoddy work, damaging your home, but the lender says you have to keep paying?  What are your rights if you were sold a solar system, it was installed but never worked, and now the lender tells you it does not matter that the system does not work, you need to keep paying or your credit will be ruined?

The law protects consumers who are caught in this trap.

As required by federal law, finance contracts for consumers must provide:

Any holder of this consumer credit contract is subject to all claims and defenses which the Debtor could assert against the Seller of goods or services obtained pursuant hereto or with the proceeds hereof.

This term is commonly known as the FTC Holder Rule. According to the Federal Trade Commission (“FTC”):

The Rule requires that such loans include a provision that preserves consumers’ ability to raise the merchant’s misconduct as a reason for not repaying the loan, even if the loan is sold. The Rule prevents businesses from using financing mechanisms to collect debts from consumers in situations where the debt arises from a sale in which the merchant defrauded customers, failed to deliver the goods or services, or engaged in other misconduct.

A finance company, bank or other lender violates the law if it insists the consumer pay the loan even though the solar system does not work, or even though the contractor failed to obtain the required permits or inspections and performed shoddy work.  The New Mexico Court of Appeals has affirmed the FTC Holder Rule prevents such misconduct by finance companies.  Many finance companies do not follow the FTC Holder Rule.  They fail to inform you of your rights when you ask for help.  If they do so, they are not only acting unfairly; they are violating the law.

Treinen Law Office has repeatedly been successful in obtaining justice for cheated New Mexicans caught in such a trap.  If you are in this trap, call us to see if we can help.