Is there a way that you can pay on a defaulted loan if your name is not on account?

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Is there a way that you can pay on a defaulted loan if your name is not on account?

In 1999 my dad took out a parent loan. It went in to default. I am trying to go back to school and because that loan is still unpaid I cannot qualify for a new loan in my name. I tried contacting the collection agency but because my name is not on the loan I cannot pay though I am willing to do so in full. I don’t understand how I can be held accountable for a situation that I can not resolve? My dad is in prision and do not have contact with him. Is there anything I can do?

Asked on February 8, 2011 under Bankruptcy Law, Utah

Answers:

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

Answered 10 years ago | Contributor

I am sorry for your situation.  It really seems ridiculous, doesn't it?  Is there any possible way that you could contact your Father and ask for a limited Power of Attorney to deal with this situation?  Then you could pay it off in full and have the creditor execute a satisfaction and a hold harmless agreement for your benefit.  Otherwise, I can not see any other option but possibly suing the collection agency and the creditor.  You need standing (a right under the law) to do so.  I think you have it under third-party beneficiary laws. The loan company's are seeing you that way (bring those denial letters as evidence).  Seek legal help.  Good luck to you.


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