The notice requirement of the Federal Trade Commission rule for consumer credit contracts has the effect of:
A) limiting the types of defenses to payment available to a consumer.
B) eliminating the real defenses to payment.
C) placing a holder in due course in the position of an assignee.
D) permitting a holder in due course to have a questionable instrument reviewed by the FTC.

Question

Quizplus · Accepted Answer

The notice requirement of the Federal Trade Commission (FTC) rule for consumer credit contracts effectively places a holder in due course in the position of an assignee. This means that the holder is subject to all claims and defenses that the consumer could assert against the seller of the goods or services, thus limiting the holder's ability to enforce the contract free from such claims and defenses.

The Notice Requirement of the Federal Trade Commission Rule for Consumer