Posted on: 30th Jun, 2010 03:51 pm
My 2nd mortgage was sold to a collection agency after my primary lender told me that the loan was charged-off. I didn't know what a charge-off is, the person I talked with from the bank told me that I would never have to pay the loan back. I was very excited.
One and half years later my 2nd has been sold and a collection agency is now asking for the money. Do they need to provide any paperwork for the collection? How do I know this is not a scam? I asked for all the paperwork they had, but it is only a short letter telling me how much I owe.
One and half years later my 2nd has been sold and a collection agency is now asking for the money. Do they need to provide any paperwork for the collection? How do I know this is not a scam? I asked for all the paperwork they had, but it is only a short letter telling me how much I owe.
Hi cite,
When your loan is charged off, it means that the lender will no longer collect the dues from you. Rather, they have assigned the account to a collection agency who will in turn collect the dues from you. I don't think it is illegal for the collection agency to contact you now and ask for payments. You can contact the lender and check out whether or not he has assigned the debt to the collection agency. Also, you can ask the collection agency for a debt validation and request them to send you the details regarding your original creditor and the amount of money you owe them.
Thanks
When your loan is charged off, it means that the lender will no longer collect the dues from you. Rather, they have assigned the account to a collection agency who will in turn collect the dues from you. I don't think it is illegal for the collection agency to contact you now and ask for payments. You can contact the lender and check out whether or not he has assigned the debt to the collection agency. Also, you can ask the collection agency for a debt validation and request them to send you the details regarding your original creditor and the amount of money you owe them.
Thanks