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

UPDATED: Feb 8, 2011

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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


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

Answered 11 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.

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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