Years ago I had a signature loan that I couldn't pay anymore because I was laid off. I tried to negotiate with them and they said it would just go to collection since I couldn't pay. So I figured I'd just let it go and when I got back on my feet I would pay the collection agency. But now I have found out that the original lender is charging off twice a year as "loss or bad debt" and the balance continues to grow.
There are some non profit organizations that may be able to help enter into a settlement on your behalf. Otherwise depending how much money is at stake, consult with an attorney who may be able to get the amount substantially reduced,
My response above is only general, legal and business analysis. It is not "legal advice." It is my own analysis based on the limited brief summary you presented. Other attorneys may have a different analysis and opinion especially if more facts are considered. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in the State of New Jersey.
You may have a claim for violation of the Fair Debt Collection Practices Act. Each violation of the Act is worth up to $1,000 to you, any actual damages, and mental anguish, plus attorney fees.
You may have a claim for violation of the Telephone Consumer Protection Act. Each violation of the Act is worth at least $500 to you plus attorney fees.
This comment is given for educational purposes only. No attorney-client relationship exists between us. If this information was helpful to you please check the box.
What do you mean when you say "now I have found out?" Is there a debt collector trying to get money out of you? Or is this reported on your credit bureau reports? If you have any evidence: phone calls, letters, or credit reports that show collection efforts, I would suggest you consult with an attorney. If your rights have been violated, an attorney may be able to help you without charging you any upfront fees.
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