{"data":{"id":"us-dc/d.c.-code-28-3809","jurisdiction":"us-dc","citation":"D.C. Code § 28-3809","heading":"Lender subject to defenses arising from sales.","body":"(a)\nA lender who makes a direct installment loan for the purpose of enabling a consumer to purchase goods or services is subject to all claims and defenses of the consumer against the seller arising out of the purchase of the goods or service if such lender acts at the express request of the seller, and —\n(1)\nthe seller participates in the preparation of the loan instruments, or\n(2)\nthe lender is a person or organization controlled by or under common control with the seller, or\n(3)\nthe seller receives or will receive a fee, compensation, or other consideration from the lender for arranging the loan.\n\n(b)\nThe lender’s liability under this section may not exceed the amount of the loan. Rights of the debtor can only be asserted affirmatively in an action to cancel and void the sale from its inception, or as a matter of defense to or set-off against a claim by the lender.","path":["Title 28. Commercial Instruments and Transactions. [Enacted title]","Chapter 38. Consumer Protections.","Subchapter I. General."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/28-3809","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"34b15768d9cee1c37db77b0e03c96fe7e45dcc9620cfce837fc3c15742ed4c80","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-28-3808","next":"us-dc/d.c.-code-28-3810"},"notice":"GroundRules: Original legal text. Not legal advice."}