§ 253. Consumer defenses. A creditor, who made a consumer loan the
proceeds of which were primarily used in a consumer sale, shall be
subject to all of the defenses of a consumer arising from such consumer
sale, provided that the creditor knowingly participated in or was
directly connected with such consumer sale. The creditor's liability
under this article shall not exceed the amount owing to the creditor at
the time the defenses of the consumer are asserted against the creditor.
Rights of the consumer under this article can only be asserted as a
matter of defense to or set-off against a claim by the creditor. The
creditor shall be subrogated to the rights of the consumer arising from
the consumer sale and shall have recourse against the seller to the
extent of any liability incurred by the creditor pursuant to this
article.