According to the FTC's ________,holders in due course who possess consumer credit contracts are subject to all claims and defenses that the buyer could use against the seller.
A)shelter provision
B)holder in due course rule
C)lack of consideration rule
D)universal defense rule

Question

Quizplus · Accepted Answer

The holder in due course rule states that holders who possess consumer credit contracts are subject to all claims and defenses that the buyer could use against the seller. This means that even if the contract was sold to a third party, the buyer can still use any defenses against the original seller.

According to the FTC's ________,Holders in Due Course Who Possess