[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR433.2]

[Page 430]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 433_PRESERVATION OF CONSUMERS' CLAIMS AND DEFENSES--Table of Contents
 
Sec. 433.2  Preservation of consumers' claims and defenses, unfair or 
deceptive acts or practices.

    In connection with any sale or lease of goods or services to 
consumers, in or affecting commerce as ``commerce'' is defined in the 
Federal Trade Commission Act, it is an unfair or deceptive act or 
practice within the meaning of section 5 of that Act for a seller, 
directly or indirectly, to:
    (a) Take or receive a consumer credit contract which fails to 
contain the following provision in at least ten point, bold face, 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,

    (b) Accept, as full or partial payment for such sale or lease, the 
proceeds of any purchase money loan (as purchase money loan is defined 
herein), unless any consumer credit contract made in connection with 
such purchase money loan contains the following provision in at least 
ten point, bold face, 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. RECOVERY HEREUNDER BY THE 
DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

[40 FR 53506, Nov. 18, 1975; 40 FR 58131, Dec. 15, 1975]