After an assignment of claim, recovery depends on whether the right validly passed, what documents were transferred and whether the debtor was properly notified. The debtor’s existing objections do not disappear merely because the creditor has changed.
What an assignment changes
A creditor’s claim may pass to another person by transaction or by operation of law. As a general rule, the debtor’s consent is not required, but legislation or the underlying agreement can affect the transaction and its consequences.
Documents to verify
- the original contract and the debt calculation;
- the assignment agreement and documents identifying the claim;
- evidence that the original creditor transferred relevant documents and information;
- notification to the debtor and evidence of its delivery;
- any objections, set-off claims or payments predating the notice.
Notice to the debtor
The debtor may withhold performance to a new creditor until proof of the transfer is provided, except where notice came from the original creditor. The notice is legally effective whether sent by the original or the new creditor. When several transfers are notified, payment according to the last notice has the effect prescribed by law.
Defences remain relevant
The debtor may raise against the new creditor objections that existed against the original creditor if their basis arose before the debtor received notice of the transfer. The case therefore requires review of the underlying obligation, not only of the assignment agreement.
Legal framework
Core rules are set out in Articles 382, 385, 386 and 388 of the Russian Civil Code. Consumer-credit claims and certain other transactions may be governed by additional legislation.
This is general information and does not replace advice on a particular assignment or debt dispute.