Glossary

Notice of assignment (NOA)

A notice of assignment is the document that tells a broker or shipper where to send payment when a carrier has factored its invoices. When a carrier signs on with a factoring company, the factor sends the broker an NOA stating that the carrier's receivables have been assigned to the factor and that payment must go to the factor's address or account.

Why it is binding

Once a broker has received a valid notice of assignment, the obligation to pay runs to the factor. If the broker instead pays the carrier directly, the factor can still demand its money, and the broker can end up paying the same invoice twice. That is why accounts-payable teams treat an NOA as a control document and update remittance records against it.

The fraud angle

Because an NOA redirects money, forged or altered notices, and forged releases that purport to cancel one, are used to divert payments. A request to change payment details deserves verification through a known, independent contact for the factor or carrier, not the contact information printed on the document itself. Confirming the carrier's legal identity on the federal record is one part of that check; verifying the factor relationship directly is the other.

A concrete case

A broker has an NOA on file directing payment for a carrier's loads to a factor. Mid-load, an email arrives from what looks like the carrier asking that payment go instead to a new bank account, with a document attached that appears to release the factor. Treated at face value, that reroutes the money to whoever sent the email. Verified through a known, independent number for the factor and the carrier, the release is either confirmed or exposed as a forgery. Because an NOA governs where money goes, any change to it is a moment to slow down and confirm through a channel that does not come from the request itself.

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