§ 25A-25. Preservation of consumers' claims and defenses. - North Carolina Statutes

§25A‑25.  Preservation of consumers' claims and defenses.

(a)        In a consumercredit sale, a buyer may assert against the seller, assignee of the seller, orother holder of the instrument or instruments of indebtedness, any claims ordefenses available against the original seller, and the buyer may not waive theright to assert these claims or defenses in connection with a consumer creditsales transaction. Affirmative recovery by the buyer on a claim assertedagainst an assignee of the seller or other holder of the instrument ofindebtedness shall not exceed amounts paid by the buyer under the contract.

(b)        Every consumercredit sale contract shall contain the following provision in at least ten‑pointboldface type:

             

NOTICE

ANY HOLDER OF THIS CONSUMER CREDITCONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERTAGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THEPROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAIDBY THE DEBTOR HEREUNDER.

(c)        Compliance with therequirements of the Federal Trade Commission rule on preservation of consumerclaims and defenses is considered full compliance with this act. (1971,c. 796, s. 1; 1977, c. 921.)