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A Collection Company Bought an Old Payday Loan I Owed. They Are Threatening Me. – Ian

Written by Steve Rhode

“Dear Steve,

an old pay day loan of 600.00 which i did not pay was bougth by a 3rd party collection bcm they called me and said they had court papers to delive but icould pay them 1200.00 and they would cancel them they taped me saying that i owed the debt and to pay payments to them if i miss one they will take me to court they have my debit cards number my friend said forget them they wont give you their address or any info about them and shut off your debit card and dont pay them ive paid 50. so far so what if they take me to court im unemployed and dont own anything its either eat or pay them. help


Dear Ian,

The scenario you’ve described so far makes it unclear if they are collecting on a valid debt or not. These days debt validation is critically important since many are collecting or trying to collect on debts they don’t rightly owe.

I think at this point you should call the collection company back and ask them for information to prove the debt is valid. For exactly what to ask for, see this article.

The company might be legitimate but the threats of court papers on an old payday loan sound suspiciously like some of the antics in this story.

If this company did truly buy the old debt and is trying to charge you under the old terms then asking them to prove they are the legitimate owner of the debt is not an unreasonable request.

If you don’t want to be caught in the middle here, tell them you spoke to a financial adviser who asked to see the supporting documentation.

What state do you live in and how old was this payday loan?

Please post your responses and follow-up messages to me on this in the comments section below.

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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