Incorporates "Purchase Money Loan[s]"

[David A. Szwak]

The Holder Rule expressly incorporates "purchase money loan[s]" within the scope of the rule. 16 C.F.R. § 433.2. A "[p]urchase money loan" is defined as "[a] cash advance which is received by a consumer" which is applied "in whole or substantial part, to a purchase of goods or services from a seller who [1] refers consumers to the creditor or [2] is affiliated with the creditor by common control, contract or business arrangement." 16 C.F.R. § 431.1[d]; Associates Home Equity Services, Inc. v. Troup, 343 N.J.Super. 254, 778 A.2d 529 [N.J. Super. A.D. 2001]. A "usiness arrangement" is defined as "[a]ny understanding, procedure, course of dealing, or arrangement, formal or informal, between a creditor and a seller, in connection with the sale of goods or services to consumers or the financing thereof." 16 C.F.R. § 433.1[g]; Associates Home Equity Services, Inc. v. Troup, 343 N.J.Super. 254, 778 A.2d 529 [N.J. Super. A.D. 2001].