With respect to a consumer credit sale, an assignee of the rights of the seller is subject to all claims and defenses of the buyer against the seller arising out of the sale, notwithstanding an agreement to the contrary, but the assignee’s liability under this section may not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee. Rights of the buyer under this section can only be asserted as a matter of defense to or setoff against a claim by the assignee.
Ala. Code § 5-19-8
Assignee of Seller Subject to Claims and Defenses of Buyer.
Applied in 1 court decision — leading case 630 F. Supp. 162 - Eachen v. Scott Housing Systems, Inc. (1986)
Most recently applied in 630 F. Supp. 162 - Eachen v. Scott Housing Systems, Inc. (February 1986)
(Acts 1971, No. 2052, p. 3290, §5; Acts 1996, No. 96-576, p. 887, §2.)
Official source: Alabama Legislature (ALISON). Reproduced from public-domain Alabama statutes; confirm against the official source for the current text. Not legal advice.