2020 Colorado Revised Statutes
Title 5 - Consumer Credit Code
Article 3. Regulation of Agreements and Practices
Section 5-3-303. Assignee subject to claims and defenses.
(1) With respect to a consumer credit sale or consumer lease, an assignee of the rights of the seller or lessor is subject to all claims and defenses of the buyer against the seller or lessor arising from the sale or lease of goods or services, notwithstanding that the assignee is a holder in due course of a negotiable instrument issued in connection with the consumer credit sale or consumer lease.
A claim or defense of a consumer specified in subsection (1) of this section may beasserted against the assignee under this section only to the extent of the amount owing to the assignee with respect to the sale or lease of the goods or services as to which the claim or defense arose at the time the assignee has written notice of the claim or defense.
For the purpose of determining the amount owing to the assignee with respect to thesale or lease:
Payments received by the assignee after the consolidation of two or more consumercredit sales, except pursuant to a revolving credit account, are deemed to have been first applied to the payment of the sales first made; if the sales consolidated arose from sales made on the same day, payments are deemed to have been first applied to the smallest sale; and
Payments received upon a revolving credit account are deemed to have been firstapplied to the payment of finance charges in the order of their entry to the account and then to the payment of debts in the order in which the entries of the debts are made to the account.
(4) An agreement may not limit or waive the claims or defenses of a consumer under this section.
Source: L. 2000: Entire article R&RE, p. 1221, § 1, effective July 1.
Editor's note: This section is similar to former § 5-2-403, as it existed prior to 2000.
