Can defendants continue to pursue an action to recover the interest of an assignee who was assigned to them for mere collection purposes?
California, United States of America
The following excerpt is from Royal Co. Auctioneers, Inc. v. Coast Printing Equipment Co., 193 Cal.App.3d 868, 238 Cal.Rptr. 538 (Cal. App. 1987):
Defendants argue that under the Act, no one who is assigned the claim of another for mere collection purposes may maintain an action to recover the assignee's interest unless he is either a licensed collection agency or falls within one of the exemptions. 8 In support of this position they rely exclusively on Grossman v. Vaupel (1970) 13 Cal.App.3d 706, 91 Cal.Rptr. 876.
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