Can a company representing an old loan serve you papers without any previous written correspondence?

UPDATED: Dec 5, 2011

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Can a company representing an old loan serve you papers without any previous written correspondence?

I have an old loan that I did not keep up the payments on. This loan is over a year old and have not heard from them by phone, mail or email, it is not even on my credit report. I have called the legal company today and they said they were going to serve me papers today if I didn’t pay them today, that I was breaking the law and would have to pay a city fine of $705 within 48 hours. My loan fee would triple from $700 to $4900 they claim. Can they do this? Should I pay them to not get served? Shouldn’t I have papers from these people?

Asked on December 5, 2011 under Bankruptcy Law, Idaho


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I would first make sure that the entity that you are dealing with concerning your old car loan actually owns it before even considering making a payment on it. There are many scams out in the market where entities throught their representatives claim they now own a former written off loan and try to get money from the debtor when in fact the written off loan has not been sold to any third party.

For you to be threatened with a criminal action for breaking the law could very well lead to a claim against the third party collection company for unfair debt collection practices.

I suggest that the third party collection company provide proof to you that it owns the loan you write about. After you receive such information, I suggest that you consult with an attorney who practices debt collection law further about your situation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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