Annette Jarvis is quoted in a ABF Journal article titled “UCC 9-406 Notices in the MCA Market: When Payment Must Be Redirected by Account Debtors.”
The article explains that merchant cash advance (MCA) companies frequently misuse UCC 9 406 notices to pressure consumers (or account debtors) into redirecting payments, even though such notices are legally enforceable only when issued by a party with a valid, senior assignment of receivables. Jarvis underscores that account debtors have clear rights and protections under UCC 9 406(c), including the ability to demand reasonable proof of both the alleged assignment and senior priority from the party issuing the notice.
She says, in part, “An account debtor, upon receipt of a questionable UCC 9-406 notice, should seek the assistance to independently verify and act on proper information to make certain it is paying the proper party in a timely manner.”
LINKS
Read “UCC 9-406 Notices in the MCA Market: When Payment Must Be Redirected by Account Debtors.”