If a consumer in a retail installment sales transaction gives the seller a negotiable instrument in part or full payment for the merchandise which is the subject of a purchase order, retail charge agreement or retail installment sales contract before that merchandise is delivered or furnished to him, the assignment of that agreement or contract or the transfer of that negotiable instrument does not bar that consumer from asserting against the assignee or transferee any defense or right of action he may have against the seller unless (1) the contract or agreement contains, in at least 10-point bold type, the following notice:

You have the right to give the assignee named (or if no assignee is named, to give the seller) written notice of any defense or right of action which you may have against the seller within 5 days of delivery of the merchandise described herein. If a notice is not received within that time, you may not assert such defense or right of action against the assignee.”; And (2) such a notice is not given within the time period stated. Notice is received within the meaning of this Section if the seller or assignee has refused to accept delivery by certified or registered mail of such a notice. It is an unlawful practice within the meaning of this Act for a seller to transfer, assign or negotiate a negotiable instrument made by and received from a consumer in connection with an order for or a contract involving merchandise to be furnished by that seller to that consumer with the intent of not furnishing or delivering merchandise of the quantity, quality and specifications and at the time and place called for by that order or contract.
     This Section does not apply where the merchandise which is the subject of the purchase order, retail charge agreement or retail installment sales contract is a motor vehicle, or where the negotiable instrument is made in accordance with the provisions of Subchapter I of the National Housing Act, as heretofore and hereafter amended.