Assignment of debt
Debt, arrears & collectionsThe legal transfer of a debt from one company to another.
Overview
Assignments are common when debts are sold.
You should be notified when the owner changes.
Why it matters
- It changes who you owe money to.
- It affects where payments should be made.
- It can impact communication and settlement options.
FAQs
Do I have to pay the new owner?
Yes, if the assignment is valid and you have been notified.
Can I refuse an assignment?
No. Assignments are typically allowed under the credit agreement.
Related terms
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