(a) In a consumer credit sale, no seller shall take or otherwise arrange for the consumer to sign an instrument, except a check, payable “to order” or “to bearer” as evidence of the credit obligation of the consumer.
(b) Any holder of an instrument prohibited by subsection (a) of this section 28-3807, if he takes it with knowledge of a violation of this section, takes it subject to all claims and defenses of the consumer up to the amount owing on the transaction total at the time of the assignment.
(Dec. 17, 1971, 85 Stat. 670, Pub. L. 92-200, § 4.)
1981 Ed., § 28-3807.
1973 Ed., § 28-3807.
This section is referenced in § 28-3909.
Consumer protection procedures, restraining prohibited acts, see § 28-3909.
Structure District of Columbia Code
Title 28 - Commercial Instruments and Transactions. [Enacted title]
Chapter 38 - Consumer Protections
§ 28–3801. Scope — Limitation on agreements and practices
§ 28–3804. Assignment of earnings and authorization to confess judgment prohibited
§ 28–3805. Debts secured by cross-collateral
§ 28–3807. Negotiable instruments prohibited
§ 28–3808. Assignees subject to defenses
§ 28–3809. Lender subject to defenses arising from sales
§ 28–3811. Home solicitation sales
§ 28–3812. Limitation on creditors’ remedies
§ 28–3813. Consumers’ remedies
§ 28–3815. Administrative enforcement