Reader Questions

Personal Loan to Collection Agency. – Stupid Mistakes

I took out a personal loan in 2008 and stopped paying due to financial difficulty…it was through Capital One. I checked my credit report and it lists the balance as roughly 1700 dollars. It also says it’s a charge-off, which I assume means the debt was really sold to a collections agency?

Anyway, I have been called by strange numbers for a long while now, but since my phone doesn’t have voicemail (yes, I am that poor!) I have no idea who it is or what they want. Recently, my mother who lives in another state, called me to tell me a sheriff showed up at her door to serve me papers, which I guess means I’m being sued? He wouldn’t show her the paperwork, but she said she saw Citi-something on it.

Anyway, I live in a different state, and took the loan out in the state I live in, not where my mother is. So it’s all a bit strange. But I have no outstanding warrents, tickets, nothing…it HAS to be this debt I never repayed.

My question, then, is what do I do? I haven’t been served yet, but it’s obvious they’re looking for me. I have no idea what collections agency has my debt, or even how much I owe anymore. I would really like to resolve the issue if I can. I want to be done with it. Also, I’m sure it would be helpful to add I am a full-time student going to school on the GI bill and jobless. So essentially, I have no income.

Stupid Mistakes

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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