The FTC upholds the preferential position enjoyed by a holder in due course of instruments concerning debts arising out of consumer credit contracts.

Question

Quizplus · Accepted Answer

The FTC (Federal Trade Commission) enforces the FTC Holder Rule, which does not allow a holder in due course to be in a preferential position regarding claims and defenses on debts arising out of consumer credit contracts. This means consumers can assert against any holder of the credit contract the same claims and defenses they could assert against the seller of the goods or services.

The FTC Upholds the Preferential Position Enjoyed by a Holder