A question
Date: Mon, 05/11/2009 - 10:37
I had a loan with an illegal pay day loan company. When I discovered they had no license to operate in my state I had paid them over $900.00 on a $300.00 loan. I wrote them a letter (certified) using the template provided on this site. Now this illegal loan company has turned this debt over to a collection agency.
QUESTION: Does the collection agency have to verify that the original debt was legal?
I do not know if ACA Recovery Inc. is licensed in Mississippi or not. I do know that the original debt was not with a licensed business in my state.
I hope someone can answer this question for me.
QUESTION: Does the collection agency have to verify that the original debt was legal?
I do not know if ACA Recovery Inc. is licensed in Mississippi or not. I do know that the original debt was not with a licensed business in my state.
I hope someone can answer this question for me.
If it is an illegal lender you need to pay only the principle am
If it is an illegal lender you need to pay only the principle amount of the debt. Now, since you have already paid over and above the principle amount, you may ask for a refund. The CA cannot collect the debt any further because you have already paid the principle amount to the OC. However, you may send a DV letter to the CA.
