Limitations of Factoring Agreements Under No Fault Law

Factoring AgreementsAn interesting question has arisen as to who can collect no-fault benefits under New York law. New York regulations provide that only the patient and the provider can sue or arbitrate for medical benefits under the no-fault law. The question that arises is what happens when the provider assigns his medical benefits to a finance company or factor who purchases the accounts receivables or obtains a lien against them? (Learn more about how a factoring agreement works.)

Under New York law, the finance company or factor cannot sue to collect the receivables that are generated under the no-fault law because they are neither the provider nor the patient. Continue reading “Limitations of Factoring Agreements Under No Fault Law”