- (a) In a consumer credit sale, no seller shall take or otherwise arrange for the consumer to sign an instrument, except a check, payable “to order” or “to bearer” as evidence of the credit obligation of the consumer.
- (b) Any holder of an instrument prohibited by subsection (a) of this section 28-3807, if he takes it with knowledge of a violation of this section, takes it subject to all claims and defenses of the consumer up to the amount owing on the transaction total at the time of the assignment.
History
Dec. 17, 1971, 85 Stat. 670, Pub. L. 92-200, § 4
Prior Codifications
1973 Ed., § 28-3807.
1981 Ed., § 28-3807.
Section References
This section is referenced in § 28-3909.
Cross References
Consumer protection procedures, restraining prohibited acts, see § 28-3909.