Legal Question in Credit and Debt Law in Pennsylvania
I received a phone call from what the person said was a collection agency about a loan I had and forgot about. When I realized this I made arrangements to pay it and did make 2 payments but have been wondering if this person is really who he says. I want to make the rest of payments and have asked them to send me in writing a letter so that I know for sure my money is really paying off my debt. When I asked for this I was told they can't because it would take too long and they will file papers in court if I don't make the payment today. Please tell me if all this sounds right. Thank you.
2 Answers from Attorneys
NEVER EVER agree to pay anyone anything over the phone absent documentation.
That is a bunch of crap that they cannot send you a letter. Do your really thing a lawyer is standing by the phone ready to file a lawsuit if you don't pay immediately? Lawyers don't work that way.
There is no point in re-hashing your past payments but going forward, what kind of loan is this for? A payday loan? Or a loan from a bank or credit union?
Payday loans are illegal in PA unless certain requirements are met. See my article at http://www.rachelhunterlaw.com/articles/article_9_Pay_DAY_Lending.html for an explanation.
If it is some other kind of loan, that is different, but you still need something in writing before you pay a penny.
Who is the creditor? Does the original lender still own the debt? If not, who is the junk debt buyer? Who is the debt collector? Don't know? Try googling the telephone number that called you. If they are legitimate then you should be able to find their name and address.
How did you make these 2 payments? Did you allow the creditor to raid your bank account? If so, then you are going to have to close your account. You can bank at the same bank but you are going to have to completely close your bank account if this company has your checking account number. If they are as dishonest as they seem to be then there is nothing stopping them from taking money out whenever they feel like it if they have your information.
Please contact me at [email protected] if you need further assistance.
Of course it doesn't sound right. In addition you should have never have acknowledged the debt or paid in the first place. The statute of limitations on collection may have run, for example. Also, collection agencies almost never have enough documentation to win a lawsuit. They rely on people to just send them money when they have no legal right to collect it. In the future, never do what you did. If they sue hire a lawyer experienced in these matters to challenge the suit.
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