Can I be sued by a furniture rental company if they got my contract from a center that has since closed down?

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Can I be sued by a furniture rental company if they got my contract from a center that has since closed down?

I rented a 4 piece bedroom set for rent-a-center. A few months later, they sold all customer agreements to another group. I’ve missed a few payments so now they are threating me with their legal department. I never signed a contract with this new company and I wasn’t made aware of the original rent-a-center selling my contract to them. I went to make a payment and the rent-a-center was empty and closed down. I had to call to find out where I was supposed to make my payments.

Asked on December 7, 2017 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If they purchased or otherwise took over the contract, then yes--they can sue you. If you have a contract with A and B takes over that contract (and a contract like this can be taken over by another company), then B has all the same rights that A had; it is as if you had signed the contract with B in the first place. If you missed payments, as you indicate, then you breached the contract: the other party, whether the original store or one which purchased the contract, may sue you for breach of contract.

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Rent-A-Center assigned your contract to Aaron's.  An assignment is a complete transfer of interest, and you remain liable on the contract.  Therefore, Aaron's can sue you for breach of contract.  All of the terms of your original contract remain in effect when there has been an assignment.


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