Legal Question in Credit and Debt Law in California

No Notification of Selling a Loan

I took out a home equity loan on 7-1-02, on 7-29-02 it was sold to another company....after receiving notice from the new company mid August, I had already made payment to first company it has never been applied anywhere...2nd call made to first company to forward funds.

The letter received from new company states I must have been notified by first company 15 days prior to closing or at closing or it is against the law. What law and what happens when the law is broken?


Asked on 8/16/02, 4:48 pm

1 Answer from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: No Notification of Selling a Loan

Thanks for your posting. Creditors have the right to sell their rights to collect to another company, without your consent. If you made a payment that has not been applied, you should get a copy of the cancelled check or other proof of payment and send it to them with a demand to update their records.

To answer the remainder of your question, I am not aware of any such requirement at closing, at least not here in California. Best of luck.

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Answered on 8/16/02, 5:34 pm


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