Can I sue a third party for notmaking a loan payment on my behalf?

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Can I sue a third party for notmaking a loan payment on my behalf?

I set up an allotment for my car payment. I financed my car through a finance company and they referred me to a third party company. An allotment was set up for $450 but they only paid out $325 saying the other $125 was paid to another creditor. Can I sue the allotment company for paying money to someone else that wasn’t agreed on. Now I’m getting harassing calls from the finance company saying that I need to pay the rest. I only set up with this allotment company to pay my car loan. I’ve been told its going to go on my credit report and there is the possibility that my car will be repossessed.

Asked on June 7, 2011 under Bankruptcy Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the third-party company has either--

1) Violated the terms of an agreement between you and it, as to how the money would be disbursed and what they would do with your money; and/or

2) Committed fraud, by getting you to sign on with them by misrepresenting (lying) what they would do

--then you may sue them for the money they took and possibly for other costs or damages you've suffered as a result of their behavior. This is something you should discuss with an attorney, someone who can evaluate all the circumstances in detail and advise you as to rights, remedies, etc.

You also should probably stop giving any money to this company, though let your attorney review your agreement with them prior to taking any concrete steps.

However, all that will take time; and in the meantime, since you are the one responsible or liable for the car loan, if the loan is not paid, you may lose your car, suffer bad credit history, and/or be sued by the auto financing company. While pursuing your remedies agains the third party, you should also make sure you pay your car loan.


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