The FTC created several rules in the 1970s that help protect consumers against various holder in due course (HDC) abuse. These rules require every consumer credit contract or any purchase money loan to mention that:

a holder who takes a negotiable instrument for value becomes a holder in due course if the holder acquires it through taking over an estate.

the holder of the consumer credit contract is not subject to all claims and defenses which the debtor could assert against the seller of goods.

a holder can be a holder in due course if he or she is aware that the instrument was issued as part of a series that is in default.

recovery hereunder by the debtor shall not exceed amounts paid by the debtor hereunder.