NCIirHW'H6#''''M

By ROSS KINCAID executive director

THE Federal Trade Commission

I recently announced a new trade regulation rule that will affect the "Holder In Due Course" Doctrine. It goes into effect May 14,1976.

In general, the regulation will allow consumers to stop credit payments and seek satisfaction if the goods or services they buy on credit do not live up to the retailer's claims. The regulations give consumers the right to assert claims against the retailer for breach of contract. breach of warranty, misrepresentation or fraud.

Dealers will be required to insert a notice in all installment sales contracts when financing retail purchases. The notice acknowledges the consumer's right to raise claims, due to the dealer's misrepresentation, against any credit company which subsequently buys the contract. That notice reads as follows:

..ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT A. GAINST THE SELLER OF GOODS OR