What are my rights if when I was about to make a loan payment I was told by a creditor that they could not receive it because they had sold my loan?

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What are my rights if when I was about to make a loan payment I was told by a creditor that they could not receive it because they had sold my loan?

They gave me the phone number to the new owners. When i called then I was told that they did not have any information about the loan at this time and could not take a payment. This went on for a few months. Recently, I received a letter from my first creditor stating that they were now the owners of my loan again and wanted payments for the back months. They sold my loan 4 months ago and brought it back last month. Do they have the right to expect payment for the months that they did not own the loan from me?

Asked on April 15, 2014 under Business Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If they legally now own it and you did not in the meantime make payment to whomever had owned it in the interim--then yes, they have the right to expect payment. Your obligation to pay did not end when the loan was sold--it simply transferred first to whomever owned it at the time, then next back to the original owner(s) when the re-purchased the loan. Any amounts in arrears (i.e. previously unpaid) are due to the person or entity which owns the loan now.


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