Can a bank sell an account that has already been settled?

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Can a bank sell an account that has already been settled?

I got a divorce over 2 years ago. My wife got the car that had both our names attached to the loan. She stopped paying on the car and it was repossessed. Not long after, the bank our loan was from called me and told me they were giving me the opportunity to pay $2000 toward the loan and in return they would report to the credit agencies that the loan was paid in full. I paid them after receiving the settlement in writing. After completing the payments, I received a letter from the bank stating they had sold the loan to a different institution. Is it legal? Can the new company try and collect?

Asked on April 5, 2012 under Bankruptcy Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Did you you ever receive a full release with respect to the car loan that you are writing about dated and signed by a representative of the bank that you were making payments on? If you did not, you may have an issue with the entity that purchased the loan wanting you to still make payments on it.

From what you have written, it makes no sense for the bank that you supposedly paid the loan off with to have sold the account to another entity. I sense some mistake on the bank's part that you need to look into before an issue happens where the new company will try and collect from you.


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