What to do if I’m being sued by a debt collector over a payday loan I have already paid off?

A few years ago I took out a payday loan with this company. When they tried to withdraw the loan repayment from my bank account, it bounced. Only because the bank at that time did not post my deposit first before my drafts. Well needless to say, I did pay back the loan within 30 days. I have bank statements to prove it. so two years go by and now they are asking me for that money again. So I faxed over statements proving that I paid them off. Now once again, another year later, they are coming at me over the same crap. Now they are saying they have sued me for the money and want to take me to court. I am furious over this because I have made several attempts to show proof of payment and I still am getting harassed over this matter.

Asked on June 25, 2012 under Bankruptcy Law, California


Cameron Norris, Esq. / Law Office of Gary W. Norris

Answered 8 years ago | Contributor

If you do not owe the bill, or if the bill has already been paid, send the agency a written explanation along with copies of receipts, cancelled checks and any other information to back up your claim. It is important to send your letter within 30 days after your first contact from the collection agency (15 United States Code section 1692g(a)(4)). Once the agency receives your dispute letter, it must stop further attempts to collect the debt until it sends you written verification to show that you do owe the bill and that the amount of the bill is correct (15 United States Code section 1692g(b)). If you are questioning only a part of the bill, the agency may not continue to collect on that part until it has provided verification, but you would still be liable for the rest of the bill, if it is a valid debt, and you may wish to make arrangements to pay that part of the bill.

If they continue to contact you, then contact the Attorney General's Office and the FTC.




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