§ 40-14-238 — When assignee not subject to defenses

(a) With respect to a consumer credit sale or consumer
lease an agreement by the buyer or lessee not to assert against
an assignee a claim or defense arising out of the sale or lease
is enforceable only by an assignee not related to the seller or
lessor who acquires the buyer's or lessee's contract in good
faith and for value, who gives the buyer or lessee notice of the
assignment as provided in this section and who, within
forty-five (45) days after the mailing of the notice of
assignment, receives no written notice of the facts giving rise
to the buyer's or lessee's claim or defense. This agreement is
enforceable only with respect to claims or defenses which have
arisen before the end of the forty-five (45) day period after
notice was mailed. The notice of assignment shall be in writing
and addressed to the buyer or lessee at his address as stated in
the contract, identify the contract, describe the goods or
services, state the names of the seller or lessor and buyer or
lessee, the name and address of the assignee, the amount payable
by the buyer or lessee and the number, amounts and due dates of
the installments, and contain a conspicuous notice to the buyer
or lessee that he has forty-five (45) days within which to
notify the assignee in writing of any complaints, claims or
defenses he may have against the seller or lessor and that if
written notification of the complaints, claims or defenses is
not received by the assignee within the forty-five (45) day
period, the assignee will have the right to enforce the contract
free of any claims or defenses the buyer or lessee may have
against the seller or lessor which have arisen before the end of
the forty-five (45) day period after notice was mailed.
(b) An assignee does not acquire a buyer's or lessee's
contract in good faith within the meaning of subsection (a) of
this section if the assignee has knowledge or, from his course
of dealing with the seller or lessor or his records, notice of
substantial complaints by other buyers or lessees of the
seller's or lessor's failure or refusal to perform his contracts
with them and of the seller's or lessor's failure to remedy his
defaults within a reasonable time after the assignee notifies
him of the complaints.
(c) To the extent that under this section an assignee is
subject to claims or defenses of the buyer or lessee against the
seller or lessor, 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 and rights of
the buyer or lessee under this section can only be asserted as a
matter of defense to or setoff against a claim by the assignee.