Consumer Warranty Law: 19.9.7.4 Raising Contractor-Related Claims and Defenses Against the Holder of the Obligation
Asserting claims and defenses against the entity that financed the transaction is another way to deal with the contractor’s insolvency. The financer will often be able to pay a judgment even if the contractor cannot. In most cases a consumer who has valid defenses against the contractor is entitled to withhold payment from, or even assert affirmative claims against, the financier.