Can a company representing an old loan serve you papers without any previous written correspondence?

I have an old loan that I did not keep up the payments on. This loan is over a year old and have not heard from them by phone, mail or email, it is not even on my credit report. I have called the legal company today and they said they were going to serve me papers today if I didn’t pay them today, that I was breaking the law and would have to pay a city fine of $705 within 48 hours. My loan fee would triple from $700 to $4900 they claim. Can they do this? Should I pay them to not get served? Shouldn’t I have papers from these people?

Asked on December 5, 2011 under Bankruptcy Law, Idaho

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I would first make sure that the entity that you are dealing with concerning your old car loan actually owns it before even considering making a payment on it. There are many scams out in the market where entities throught their representatives claim they now own a former written off loan and try to get money from the debtor when in fact the written off loan has not been sold to any third party.

For you to be threatened with a criminal action for breaking the law could very well lead to a claim against the third party collection company for unfair debt collection practices.

I suggest that the third party collection company provide proof to you that it owns the loan you write about. After you receive such information, I suggest that you consult with an attorney who practices debt collection law further about your situation.


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