What rights do account debtors retain after the creditor repossesses the accounts?

When a creditor repossesses accounts, account debtors retain the right to assert defenses to payment. This principle is rooted in the understanding that even after an assignment or transfer of accounts, the account debtor has defenses available to them regarding their obligations to pay. For example, if the underlying obligation has been satisfied, the account debtor can assert this as a defense against the creditor claiming payment on the account, regardless of the change in party due to assignment.

The other options do not accurately reflect the rights of account debtors in this context. Account debtors do not lose all rights to discharge their debt because they still maintain the ability to dispute any payment obligations based on legitimate defenses. Moreover, they are not required to pay both the debtor and the creditor; rather, their duty to pay is typically only to the assignee (the new creditor) unless otherwise specified. Finally, account debtors do retain the right to demand proof of assignment, as this can impact their understanding of whom they are obliged to pay. Thus, the correct assertion about their retained rights is that they can assert defenses to payment.