Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can
A)extinguish the contract rights of the assignor.
B)demand performance of the deal from any of the original parties.
C)enforce the payment in court.
D)none of the choices.

Question

Quizplus · Accepted Answer

When a lender assigns the right to receive loan payments to another entity, the assignee (in this case, Debt Collections Inc.) gains the right to enforce the payment in court if the borrower fails to pay the debt. This is a standard practice in debt collection and does not involve extinguishing contract rights of the assignor or demanding performance from any original parties outside of the agreed terms.

Beau Borrows $15,000 from Credit Center to Buy a Car