District of Columbia § 26-1153.05 Assignee liability.

District of Columbia Statutes

§ 26-1153.05 — Assignee liability.

District of Columbia § 26-1153.05

Title 26Banks and Other Financial Institutions.

Ch. 11AHome Loan Protection.

Subch. IIIViolations and Remedies; Enforcement and Civil Liability.

This text of District of Columbia § 26-1153.05 (Assignee liability.) is published on Counsel Stack Legal Research, covering District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

D.C. Code § 26-1153.05 (2026).

Text

(a)Any person who purchases or is otherwise assigned a covered loan shall be subject to all claims and defenses with respect to the covered loan that the borrower could assert against the originator of the covered loan, unless the purchaser or assignee demonstrates, by a preponderance of the evidence, that a reasonable person exercising ordinary due diligence could not determine that the loan was a covered loan for the purposes of this chapter, based on:

(1)The documentation required by § 26-1151.02 or subchapter II of this chapter ;

(2)The itemization of the amount financed; and

(3)Other disclosure of disbursements.

(b)Nothing in subsection (a) of this section shall affect the rights of a borrower under any other provision of this chapter.

(c)Notwithstanding any other pro

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(a) Any person who purchases or is otherwise assigned a covered loan shall be subject to all claims and defenses with respect to the covered loan that the borrower could assert against the originator of the covered loan, unless the purchaser or assignee demonstrates, by a preponderance of the evidence, that a reasonable person exercising ordinary due diligence could not determine that the loan was a covered loan for the purposes of this chapter, based on:

(1) The documentation required by § 26-1151.02 or subchapter II of this chapter ;

(2) The itemization of the amount financed; and

(3) Other disclosure of disbursements.

(b) Nothing in subsection (a) of this section shall affect the rights of a borrower under any other provision of this chapter.

(c) Notwithstanding any other provision of law, the relief provided under this section shall not exceed:

(1) With respect to actions based upon a violation of this chapter, the amount of actual damages; and

(2) With respect to all other causes of action, the sum of:

(A) The amount of all remaining indebtedness; and

(B) The total amount paid by the consumer in connection with the transaction, reduced by the amount of any damages awarded under paragraph (1) of this subsection.

(d) Any person who sells or otherwise assigns a covered loan shall include a prominent notice, in the form as provided by the Mayor pursuant to rules of the potential liability under this section.