Turner

MEMORANDUM **

The precise notice language mandated by the Federal Trade Commission “holder rule” was included in the governing retail installment contract (contract). 1 See 16 C.F.R. § 433.2 (a). “Even if such a notice was not required to be given, the fact remains that it was ...” Music Acceptance Corp. v. Lofing, 32 Cal.App.4th 610, 630 , 39 Cal.Rptr.2d 159 (1995). As a matter of contract, any claims or defenses that the Turners could assert against the seller Marine Collection, Inc. (Marine) are also valid claims or defenses against CIT. See id.

It is undisputed that Marine committed fraud and that there was a *4 material failure of consideration for the contract, given that The Brittany was subject to a preexisting Ken and was eventually sold in a judicial foreclosure sale. The Turners therefore may assert their defenses of fraud and failure of consideration against CIT’s breach of contract claim. See id. Likewise, the Turners are entitled to cancel the contract and recover the amount of money they paid CIT for The Brittany. See id. at 622, 39 Cal.Rptr.2d 159 ; Cal. Civ.Code § 1689(b)(l)-(2); Cal. Com.Code § 2711(1). Because no material facts are genuinely in dispute,…