HERE IS HOW THE HOLDER IN DUE COURSE CAN STILL BE DEFEATED in a “Consumer Transaction” Here are some pertinent
thoughts, under the definition, who is the creditor? What is a consumer? If we are the creditor, there is no consumer, if our ALL caps is the Creditor, “person” in the arrangement, an important party is missing… the consumer! Look at the Disclaimer below, was it on any of your contracts?? RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. If we are the creditor, then who is the debtor… and what rights do they have in recovery? ONLY the amount they paid.! [Code of Federal Regulations] [Title 16, Volume 1] [Revised as of January 1, 2001] From the U.S. Government Printing Office via GPO Access [CITE: 16CFR433.1] [Page 427-428] TITLE 16--COMMERCIAL PRACTICES CHAPTER I--FEDERAL TRADE COMMISSION PART 433--PRESERVATION OF CONSUMERS' CLAIMS AND DEFENSES--Table of Contents Sec. 433.1 Definitions. (a) Person. An individual, corporation, or any other business organization. (b) Consumer. A natural person who seeks or acquires goods or services for personal, family, or household use. (c) Creditor. A person who, in the ordinary course of business, lends purchase money or finances the sale of goods or services to consumers on a deferred payment basis; Provided, such person is not acting, for the purposes of a particular transaction, in the capacity of a credit card issuer. (d) Purchase money loan. A cash advance which is received by a consumer in return for a ``Finance Charge'' within the meaning of the Truth in Lending Act and Regulation Z, which is applied, in whole or substantial part, to a purchase of goods or services from a seller who (1) refers consumers to the creditor or (2) is affiliated with the creditor [[Page 428]] by common control, contract, or business arrangement.
type: NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. or arrangement. directly or indirectly. 1975] TITLE 16--COMMERCIAL PRACTICES CHAPTER I--FEDERAL TRADE COMMISSION PART 433--PRESERVATION OF CONSUMERS' CLAIMS AND DEFENSES--Table of Contents Sec. [40 FR 53506. course of dealing. procedure.
. A person who extends to cardholders the right to use a credit card in connection with purchases of goods or services.(e) Financing a sale. (f) Contract. 18. in connection with the sale of goods or services to consumers or the financing thereof. sells or leases goods or services to consumers. to: (a) Take or receive a consumer credit contract which fails to contain the following provision in at least ten point. between a creditor and a seller. it is an unfair or deceptive act or practice within the meaning of section 5 of that Act for a seller. (h) Credit card issuer. (j) Seller. formal or informal. bold face. Any oral or written agreement. (i) Consumer credit contract. in or affecting commerce as ``commerce'' is defined in the Federal Trade Commission Act. between a creditor and a seller. Nov. which contemplates or provides for cooperative or concerted activity in connection with the sale of goods or services to consumers or the financing thereof. In connection with any sale or lease of goods or services to consumers. (g) Business arrangement. A person who. Extending credit to a consumer in connection with a ``Credit Sale'' within the meaning of the Truth in Lending Act and Regulation Z. in the ordinary course of business. 433. Any understanding. Any instrument which evidences or embodies a debt arising from a ``Purchase Money Loan'' transaction or a ``financed sale'' as defined in paragraphs (d) and (e) of this section. unfair or deceptive acts or practices.2 Preservation of consumers' claims and defenses. formal or informal.
1975] § 3-404. by use of the mails or otherwise. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. in good faith. 18. induces the issuer of an instrument to issue the instrument to the impostor. [40 FR 53506. unless any consumer credit contract made in connection with such purchase money loan contains the following provision in at least ten point. (b) Accept. FICTITIOUS PAYEES. bold face. pays the instrument or takes it for value or for collection. an indorsement is made in the name of a payee if (i) it is made in a name substantially similar to that of the payee or (ii) the instrument. whether or not indorsed. in good faith.
(a) If an impostor. if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument. o (2) An indorsement by any person in the name of the payee stated in the instrument is effective as the indorsement of the payee in favor of a person who. or (ii) the person identified as payee of an instrument is a fictitious person. (d) With respect to an instrument to which subsection (a) or (b) applies. is deposited in a depositary bank to an account in a name substantially similar to that of the payee. pays the instrument or takes it for value or for collection. type:
NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. IMPOSTORS. an indorsement of the instrument by any person in the name of the payee is effective as the indorsement of the payee in favor of a person who. 15. 1975. or to a person acting in concert with the impostor.or. the person bearing the loss may recover from
. Nov. as full or partial payment for such sale or lease. Dec. the following rules apply until the instrument is negotiated by special indorsement: o (1) Any person in possession of the instrument is its holder. the proceeds of any purchase money loan (as purchase money loan is defined herein). (b) If (i) a person whose intent determines to whom an instrument is payable (Section 3110(a) or (b)) does not intend the person identified as payee to have any interest in the instrument. 40 FR 58131. (c) Under subsection (a) or (b). by impersonating the payee of the instrument or a person authorized to act for the payee.
the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.