Code of the District of Columbia

§ 28–3807. Negotiable instruments prohibited.

(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.)

Prior Codifications

1981 Ed., § 28-3807.

1973 Ed., § 28-3807.

Section References

This section is referenced in § 28-3909.

Cross References

Consumer protection procedures, restraining prohibited acts, see § 28-3909.