On a note that forms part of a consumer's contract to buy goods for personal use, the notice in the contract required by FTC Rule 433 places an HDC of the note in the position of a contract assignee.

FTC Rule 433

Known as the "Holder in Due Course" rule, it protects consumers entering into a credit transaction by preserving their right to assert claims against the seller, even when the debt is sold to a third party.

HDC

Holder in Due Course; a term used in the Uniform Commercial Code referring to a person who acquires a negotiable instrument in good faith and for value, thus obtaining certain rights.

Consumer's Contract

An agreement between a buyer and seller detailing the terms of a purchase, often including rights, responsibilities, and warranties specific to consumer transactions.