If I received a loan for $2600 but now the creditor is attempting to sue me for over 13K, is this legal?

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If I received a loan for $2600 but now the creditor is attempting to sue me for over 13K, is this legal?

I’m sure that many have seen the ads on television. At the time I had just lost my job and just needed a little money to get by. Well I received a loan for $2600. I stated to the representative at the time that I only needed $1500 but he recommended that I took the entire amount. Well I was able to make one monthly payment to them and then after that could not make payments anymore. I thought that they were just going to put the loan amount plus the high interest rates on my credit report. Today I received a phone call stating that I was going to be served to appear in court.

Asked on April 23, 2012 under Bankruptcy Law, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Okay so you got a call from a debt collector threatening suit, correct?  You have not actually been serve papers, right?  13K does sound a bit high.  Do you have any paperwork at all from this place?  Do you have any idea what you agreed to regarding the money?  You are going to be sued.  When you are served you need to put in an answer in to court.  You do not want to ignore this because they will get a default judgement against you and you will have  hard time fighting the matter after that.  It sounds to me a bit like usuary- charging unlawful rates on loans.  But I can not tell with out seeing the papers.  Please get legal help (even if legal aid) when you are served.  Good luck.


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