Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caDC-97-05316/USCOURTS-caDC-97-05316-1/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 

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United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Filed June 4, 1999

No. 97-5316

Vanessa Armstrong,

Appellant

v.

Accrediting Council for Continuing Education and

Training, Inc., et al.,

Appellees

On Petition for Rehearing

---------

Before: Henderson, Randolph and Tatel, Circuit Judges.

O R D E R

On consideration of appellant's petition for rehearing, it is

Ordered by the court that the petition be denied and that

the slip opinion filed herein on March 23, 1999 (reported at

168 F.3d 1362) be amended as follows:

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On page 4 of the slip opinion (168 F.3d 1364-65), delete the

first two sentences of the paragraph beginning "To further

encourage ..." and replace them with the following:

Congress also excluded GSLP loans from the Truth in

Lending Act ("TILA"), see Pub. L. No. 97-320, sec.

701(a), s 1603, 96 Stat. 1469, 1538 (1982), and the FTC

stopped enforcing its so-called "Holder Rule" against

GSLP lenders. See Federal Appellee's Br. at 25 ("1982

TILA amendments exempting student loans from TILA

coverage convinced both courts and FTC staff that the

Holder Rule thereafter no longer applied to GSLP

loans."). Adopted by the FTC in 1976,....

On page 6 (168 F.3d 1365), in the first full sentence, replace

the phrase stating "together with the FTC's renewed enforcement policy" with "together with the FTC's decision to enforce the Rule with respect to guaranteed student loans."

On page 10 (168 F.3d 1368), delete the two sentences

following the sentence stating "We think appellees have the

better of this argument" and replace them with the following:

In 1982, Congress expressly exempted student loans

from the Truth in Lending Act. At that point, because

the Holder Rule incorporated TILA's definitions and was

therefore considered limited to credit transactions covered by TILA, see 16 C.F.R. s 433.1(d), (e), the FTC

stopped enforcing the Holder Rule with respect to GSLP

loans. In a letter dated April 12, 1990, FTC staff,

reiterating advice given in an earlier letter, described its

"current enforcement position" as "[GSLP] loans would

not be covered by the Holder Rule." Letter from John

F. LeFevre, Program Advisor, Federal Trade Commission, to Joseph Esposito, Akin, Gump, Strauss, Hauer &

Feld (Apr. 12, 1990). Although this advice was later

"retracted," see Letter from John F. LeFevre to Joseph

Esposito (June 20, 1990), that retraction related to future

enforcement, and nothing in either it or elsewhere in the

record contradicts the government's statement that the

FTC stopped enforcing the Holder Rule against GSLP

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lenders after the 1982 TILA Amendments. Not until

after Armstrong obtained her loan....

On page 11 (168 F.3d 1368), replace the words "nonenforcement policy" in the second sentence of the full paragraph with

"nonenforcement of the Holder Rule."

On page 14 (168 F.3d 1370), amend the last sentence on the

page beginning "In letter rulings ..." to read: "In letter

rulings discussing circumstances closely mirroring the facts of

this case, see Maljack Prods., Inc. v. Motion Picture Ass'n of

America, Inc., 52 F.3d 373, 375 (D.C. Cir. 1995) (on motion to

dismiss we accept the facts alleged in the complaint as true),

the Secretary...." In addition, after the citation to "Letter

from Larry Oxendine to John E. Dean (Feb. 20, 1991)" on

page 15, add the following: "; see also 57 Fed. Reg. 60,304

("The Secretary has also decided to describe an 'origination

relationship' as a special business relationship between a

school and a lender so as to distinguish it from the relationship that exists between these parties as part of the normal

loan processing and delivery system.")."

Per Curiam

For the Court:

Mark J. Langer, Clerk

By:

Deputy Clerk

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