Asked by kirston seldon on Jun 07, 2024
Verified
When a consumer credit contract is transferred to a subsequent holder, the holder obtains all the rights just as if they were the original HDC.
Consumer Credit Contract
A legal agreement between a borrower and a lender in which the borrower receives something of value now and agrees to repay the lender at a future date, usually with interest, under specified conditions.
Rights
Entitlements or privileges legally guaranteed to individuals or entities, underpinning their ability to perform or refrain from certain actions.
- Grasp the practical and legal considerations in the transfer of consumer credit contracts and the rights of subsequent holders.
Verified Answer
CS
Courtney SiscoJun 09, 2024
Final Answer :
False
Explanation :
When a consumer credit contract is transferred to a subsequent holder, the holder does not necessarily obtain all the rights as if they were the original holder in due course (HDC). The rights obtained can be limited by defenses that the consumer could assert against the original creditor, such as fraud or breach of warranty.
Learning Objectives
- Grasp the practical and legal considerations in the transfer of consumer credit contracts and the rights of subsequent holders.