Indirect Lending

Troutman Sanders’ Financial Services Litigation practice has substantial experience defending lenders who have been subjected to claims solely on the basis of their status as holders in due course of installment sales contracts and other notes. Troutman Sanders has defended such claims in state and federal court, as well as in arbitration, on an individual and class action basis as national counsel for lenders. When asserted against lenders, Troutman Sanders has an established track record of defeating such claims and obtaining full indemnification from the prior holder of the instrument.

Troutman Sanders’ lawyers also provide extensive state and federal law compliance advice to leaders in the financing industry. This deep well of compliance experience means that Troutman Sanders’ lawyers are consistently ahead of changes in the litigation and regulatory landscape. This experience also allows Troutman Sanders’ lawyers to bring specialized knowledge to high-risk litigation challenging industry participants’ adherence to state and federal consumer protection laws.

Troutman Sanders has served as counsel for financial institutions who have been subject to indirect lending claims under the Magnuson-Moss Warranty Act, the Federal Trade Commission Holder Rule and various state consumer protection statutes throughout the United States. Troutman Sanders has represented national financial institutions in dozens of states, including Arkansas, California, Michigan, Mississippi, New Jersey, New Mexico, New York, Oklahoma, Ohio, Tennessee, and Virginia. Our lawyers provide ongoing analysis and commentary on developments in the consumer financial services industry on the Consumer Financial Services Law Monitor located at

  • Counsel for national banking association with respect to multiple class action claims against automobile dealerships in California for fraud, violations of the California Consumers Legal Remedies Act, and California’s Unfair Competition Law. Successfully struck the class allegations against the holder on the basis of procedural and due process issues.
  • Counsel for national banking association for claims asserted against numerous dealerships in California relating to failure to properly itemize payoff amount on retail installment sales contract.
  • Counsel to national banking institution with regard to claims asserted under the Magnusson-Moss Warranty Act, the New Jersey Consumer Fraud Act, and the common law of New Jersey. Obtained dismissal of the case and indemnification.
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