A new creditor is different from a new bank account
A business receives a letter from an unfamiliar party claiming an assigned receivable and requesting payment. Neither immediate compliance nor always paying the original creditor is a sound rule. Establish what was assigned, which debt is covered and how the debtor was notified. This article concerns obligations payable to a specifically identified creditor, not every negotiable instrument or special regime.
A bank-account change may be a payment arrangement, an authority to collect or a genuine assignment claim. These have different consequences. Ask the sender to identify the recipient’s capacity and supporting evidence; a bank-account name alone does not establish legal creditor status.
Separate the assignment from notice
Under Civil and Commercial Code section 306, this type of assignment requires writing for validity. It is opposable to the debtor or third parties after written notice to the debtor or the debtor’s written consent. The assignor–assignee agreement and the evidence concerning the debtor therefore address different requirements.
Operationally, retain the notice, attachments, envelope or delivery evidence and a provable receipt date. Match parties, contract or invoice references, amounts and the scope of covered debts. For electronic files or messages, assess writing requirements, reliability and receipt on the facts rather than assuming that one screenshot satisfies every condition.
Receipt and unreserved consent are not interchangeable
Section 306 also protects a debtor who satisfies the assignor before notice or consent. Section 308 distinguishes unreserved consent from mere notification: such consent restricts defences against the assignee, whereas a notified debtor may retain pre-notice defences against the assignor. Exceptions and set-off require examination of the statutory conditions and facts.
Hypothetically, a debtor documented missing goods before receiving an assignment notice, but the reply form confirms the full balance and gives unreserved consent. Receipt staff should not immediately sign for an authorised decision-maker. Separate recording receipt from acknowledging the balance or waiving objections, and obtain legal review of the wording. The example does not predict whether any defence will succeed.
Verify the payee and address conflicts before payment is due
Contact the original counterparty through an established channel and cross-check the assignee, signatory authority and supporting records. Do not rely only on a new phone number or account in the notice. If two assignees claim the same debt, section 307 makes the order of notice or consent relevant; preserve the timeline and seek legal review rather than choosing the latest-dated contract.
If payment is nearly due and entitlement remains unclear, uncertainty does not itself grant an extension. Assemble the underlying contract, assignment and notice, receipt evidence, payment history and objections for professional advice on the appropriate course. B Law Firm provides legal advisory services according to its website; this file supports focused assessment of payment entitlement and preservation of defences.
References
"Be your trusted Partner" - we are ready to protect your rights and interests.
Back to all articles
