This Rule is the reason most consumer Purchase Money contracts contain a certain Notice that makes the Lender and its Assignees aware that they are subject to claims that the Debtor may have against the party with whom they first dealt. If a claim is asserted pursuant to the Rule, the Creditor must be concerned with not only defending the claim, but also with its potential rights against its assignor.
Attorney Tom Reilly has handled many of these scenarios requiring timely and proper pleading, proper joinder of parties, demands for defense and indemnification.These cases involve the interplay of the Uniform Commercial Code, other regulations and statutory provisions including the Unfair Trade Practices and Consumer Protection Law, Motor Vehicle Installment Sales Finance Act, and the Interest Rate and Usury Law also known as Act 6 of 1974.