Legal Question in Credit and Debt Law in California

Re: Repaying a loan

You can pay them what you have. That will reduce the amount of the loan substantially. That will then reduce the interest.

Also, if they are calling you and threatening you, there may be Rosenthal Act violations. You may have a claim against them. You can read more about the Rosenthal Act at www.californiadebtblog.com.

Re: Repaying a loan

You may want to have an attorney contact them for you, often collectors are more responsive when they know they can't bully the person on the other end of the phone. It is not a guarantee, but it could help. Also, if they are "threatening" a law suit, or being threatening in other way, there may be Fair Debt Collection Practices Act implications. You should also demand that the collection agency validate the debt and the total amount due.

Re: Repaying a loan

39% interest sounds fishy to me. Only certain institutions, like banks, can charge more than 10% per year interest. If this institution doesn't qualify, then all the payments you've made would be towards the principal. I mention this because your description doesn't say what type of institution with which you made the deal.

An attorney needs to review this situation regarding usury, violations of the Fair Debt Collection Practices Act, and the amount, if any, the account should be settled for with the creditor.