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

Answers:

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.

1(877)-FTC-HELP

http://oag.ca.gov/contact/consumer-complaint-against-business-or-company

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.