Once an assignment is made, all rights and interests of the assignor are transferred to the assignee. A creditor or assignor can assign his or her claim against a debtor in such a way as to affect a complete sale of the claim. Nevertheless, a creditor or assignor can assign his or her claim against a debtor for purposes of collection. Such an assignment transfers legal title to the claim, so an assignee can sue in his or her own name. However, equitable ownership is retained by the assignor.[i]
In an assignment for collection, the assignor retains equitable ownership of those claims, and may bring an action to collect the amount owed them. Accordingly, a creditor or assignor may assign his or her claim against a debtor so as to effect a complete sale of the claim. The creditor may also assign a claim solely for the purposes of collection.[ii]
To determine whether an assignment of a claim is a complete sale or an assignment merely for the purposes of collection, both the printed assignment form and the context in which the form was executed are considered.
[i] O&G Indus. v. LaFarge Bldg. Materials, Inc., 2009 Conn. Super. LEXIS 2494 (Conn. Super. Ct. Sept. 16, 2009)