Ohio Code § 1317.032

§ 1317.032.

(A) A buyer who is entitled to assert in an action in connection with a consumer transaction

any of the following defenses against the seller of goods or services that are obtained

pursuant to a purchase money loan installment note or retail installment contract

may also assert the defenses against the holder, assignee, or transferee of the purchase

money loan installment note or retail installment contract, whether or not any notice

of potential claims and defenses is included in the note or contract: (1) That the subject of the consumer transaction was not furnished or delivered by the

seller in accordance with the agreed upon terms of the transaction; (2) That, as evidenced by any writing in the consumer transaction, the subject of the

transaction is not of the particular brand, color, or model that it was represented

to be; (3) That the subject of the consumer transaction is not new or unused, if the subject

was represented by the seller to be new or unused; (4) That the subject of the consumer transaction did not conform to any express or implied

warranty made by the seller; (5) That the consumer transaction was entered into because of a fraudulent act or misrepresentation

committed or made by the seller. (B) If a creditor, in writing, requests a debtor to disclose, in writing, whether the

proceeds of a loan that he receives or will receive are to be applied to a consumer

transaction, the debtor shall disclose at that time any such intended application.  The written request imposes a continuing obligation upon the debtor to disclose

any application of any part of the proceeds to a consumer transaction.  If the debtor fails to disclose any application of the proceeds to a consumer transaction,

the loan shall not be considered a purchase money loan for purposes of this chapter. (C) A buyer, who has a defense against a seller arising out of a consumer transaction

that he is entitled to assert as a defense against a holder, assignee, or transferee

of a purchase money loan installment note or retail installment contract and as a

cause of action against that seller, may assert the cause of action to recover from

the holder, assignee, or transferee of the purchase money loan installment note or

retail installment contract, the amount of any payments made to the holder, assignee,

or transferee, if all of the following apply: (1) The buyer has presented, or has made a reasonable effort to present, his claim to

the seller, and furnished a copy of the claim to the holder, assignee, or transferee. (2) The seller has not settled the claim within thirty days after the request if the

buyer has presented the claim to the seller. (3) The buyer's action against the holder, assignee, or transferee is brought within

the earlier of the following dates: (a) The date fixed by the note or contract for the last payment due under the note or

contract; (b) Two years after the date on which the note or contract is executed. The assertion of such an action against the holder, assignee, or transferee is authorized

even if the grounds for the cause of action against the seller are asserted as a defense

in an action by the holder, assignee, or transferee. (D)(1) As used in this section, “claim” means only those claims that arise from a consumer

transaction evidenced by a purchase money loan installment note or retail installment

contract, that do not involve a claim of personal injury, death, or property damage. (2) The provisions of this section shall not be construed to limit or otherwise affect

any other right, claim, or defense that a buyer may assert against a seller or any

other person in an action relative to a consumer transaction, purchase money loan

installment note, or retail installment contract.