A holder or assignee’s rights in certain consumer-obligation writings can be limited by the debtor’s defenses and setoffs, and the buyer or lessee must give written certified-mail notice within 90 days to assert them.
44-145 - Negotiable instruments or other writings evidencing consumer obligations; limitation on liability 44-145 . Negotiable instruments or other writings evidencing consumer obligations; limitation on liability A. The rights of a holder or assignee of an instrument, account, contract right, chattel paper or other writing, other than a check or draft, which evidences the obligation of a natural person as buyer, lessee, or borrower in connection with the purchase or lease of consumer goods or services, are subject to all defenses and setoffs of the debtor arising from or out of such sale or lease if notice of such defense or setoff is given within ninety days after receipt of the goods or services by the debtor, notwithstanding any agreement to the contrary. For a period of ninety days after receipt of the goods or services by the debtor, a holder or assignee is not a holder in due course if he takes an instrument, other than a check or draft, which is subject to the provisions of this section. The rights of the debtor under this section may be asserted only as to amounts then owing and as a matter of defense to or setoff against a claim by the holder or assignee and may be asserted only if the buyer or lessee gives notice of the claim or defense in writing by certified mail to the seller or lessor at the last known business address of the seller or lessor within ninety days after receipt of the goods or services. B. This section is not applicable to: 1. Credit card sales of perishable consumer goods or consumer services on a credit card issued by an issuer other than the seller. 2. Any credit card transaction made outside the state of Arizona. 3. An instrument or other writing which evidences a loan or indebtedness to a lender or person, other than a seller or lessor, which was not arranged by a seller or lessor, the proceeds of which are used by the buyer or lessee to satisfy an obligation to a seller or lessor. C. The definitions in title 47, chapters 1, 3 and 9 are applicable to this section. For the purposes of this section: 1. "Consumer services" means services for use primarily for personal, family or household purposes. 2. "Arranged" means to provide or offer to provide a loan which is or will be extended by another person under a business or other relationship pursuant to which the person arranging such loan receives or will receive a fee, compensation, or other consideration for such service or has knowledge of the terms of the loan and participates in the preparation of the instruments required in connection with the extension of the loan.