(a) No licensee or other person shall pledge, hypothecate, or sell a consumer legal
funding entered into under the provisions of this Act by a consumer except to another
licensee under this Act, a bank, savings bank, savings and loan association, or credit
union created under the laws of this State or the United States, or to other persons
or entities authorized by the Secretary in writing. Sales of such notes by licensees under this Act or other persons shall be made by
agreement in writing and shall authorize the Secretary to examine the consumer legal
funding documents so hypothecated, pledged, or sold.
(b) A consumer may pay the original consumer legal funding company until he or she
receives notification of assignment of rights to payment pursuant to a consumer legal
funding and that payment is to be made to the assignee. A notification which does not reasonably identify the rights assigned is ineffective. If requested by the consumer, the assignee shall seasonably furnish reasonable proof
that the assignment has been made and, unless the assignee does so, the consumer may
pay the original consumer legal funding company.
(c) An assignee of the rights of the consumer legal funding company is subject to
all claims and defenses of the consumer against the consumer legal funding company
arising from the consumer legal funding. A claim or defense of a consumer may be asserted against the assignee under this
Section only if the consumer has made a good faith attempt to obtain satisfaction
from the consumer legal funding company with respect to the claim or defense and then
only to the extent of the amount owing to the assignee with respect to the consumer
legal funding company claim or defense that arose at the time the assignee has notice
of the claim or defense. Notice of the claim or defense may be given before the attempt specified in this
subsection. Oral notice is effective unless the assignee requests written confirmation when
or promptly after oral notice is given and the consumer fails to give the assignee
written confirmation within the period of time, not less than 14 days, stated to the
consumer when written confirmation is requested. An agreement may not limit or waive the claims or defenses of a consumer under this
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