Not sure if I even made a loan from this company but it was online and no check was written now a collection agency who is not the lender is constantly calling and telling me if I dont pay the loan they will summons me to court when I dont have a job. can they legally do that when i dont own them?
Its not uncommon for creditors to sell a debt to another 3rd party collection agency. A collection agency inherit the rights and duties of the creditor it purchase the debt from. This means that they can bring a lawsuit against the person who owes that debt.
Now, in your situation and based on your facts, you can request that they produce the original agreement that you supposedly signed. How old is the debt itself, if the debt is last used or paid for more than 4 years ago, Texas provides an affirmative defense of statute of limitation against collection of old debt.
Moreover, there are limitation to what the creditor can recover from you. Texas provides "exemptions" meaning property that are protected by law that prevents creditors to take from you. So the question also is, do you have anything that are "non-exempt". If not, then even with the judgment they can't really do anything to you. Texas prevents garnishment of wages so they can't take money directly from your pay check. They can place an attachment on your bank account so whatever money you have in your checking or savings can be taken. There are more exemptions and restrictions to what your creditor can do.
Consult a local collections attorney to provide you with more specific answers.
The foregoing are comments to a general question of law, and should in no way be interpreted as legal advice. This information does not create an attorney-client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements
Collection agencies typically threaten a lot of things that they never do. For example, collection agencies usually do not file suit, as it takes a lawyer licensed to practice in Texas.
Ask the agency to provide proof of the debt. Or tell the agency to stop calling you, as is your right under the Fair Debt Collection Act.
Incidentally, an agency does not need to own the debt to chase it or try to collect it.
Just adding to the answers of Mr. Kim and Mr. Erikson, the direct answer to your question is that under Texas state collection law it is perfectly permissible for a creditor or a "debt collector" to contact a consumer and threaten to institute a lawsuit to collect on a valid debt.
My firm, Fears Nachawati, does a lot of work in debtor/creditor law in the Fort Worth area, specifically in the field of bankruptcy. If you have any questions you can reach our firm at 214-890-0711.
The information provided in this post is not "legal advice." Rather it is general information on common legal issues. If you have questions concerning your specific situation, it is always best to consult an attorney.
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