The FTC rule, which provides that a notice provision must be included in all consumer credit contracts, requires that the notice:
A) limit recovery under the contract to amounts paid by the debtor plus a reasonable charge for incidental damages.
B) be in italic type.
C) be at least 20 points in size.
D) has the effect that no subsequent person can be a holder in due course of the instrument.

Question

Quizplus · Accepted Answer

The FTC rule requires that the notice provision in consumer credit contracts ensures that no subsequent holder can be a holder in due course, protecting consumers from certain defenses being cut off.

The FTC Rule, Which Provides That a Notice Provision Must