Sale of accounts receivable under UCC

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The sale of accounts receivable is regulated by
Article 9 of the Uniform Commercial Code.

Illinois


1. Send a certified or faxed letter requesting assignment or assignments
necessary to show title in plaintiff under ICC §9-406, 810 IL CS 5/9-
406. The way §9-406 is written the debt buyer is not entitled to payment
unless it provides a copy of the assignment(s). Wait about 10 days after
receipt and then move to dismiss on the ground that there is no obligation
to pay.

2. Section 9-210 of the Uniform Commercial Code gives right to accounting,
defined as breakdown of what debt consists of. Debt buyer does not have
option to cease collection. There is $500 statutory damages for
noncompliance, albeit only individually.