Legality of 3rd party collection agency
Date: Mon, 05/13/2013 - 14:22
I have been dealing with Spotloan, who was once known as Zest Cash, but is not a tribal lender. Several months ago I closed bank account and sent them a letter that I had overpaid and would not be paying them another dime. I received the typical emails, blah blah blah, and then about 2 months ago I received a letter from Stellar Recovery, a collection agency. Again, I sent them the same info that they were illegal, and didn't hear anything again. Now, I am receiving called from Lighthouse Recovery regarding this loan.
Question: I know that I only owe principal on loan, which was overpaid. But legally, when a 3rd party "buys" loan, what legal leg do they stand on as far as collecting? I am guessing that company is licensed in MO. I don't think the illegal tribal lender will sue me, but can or will collection agencies?
Question: I know that I only owe principal on loan, which was overpaid. But legally, when a 3rd party "buys" loan, what legal leg do they stand on as far as collecting? I am guessing that company is licensed in MO. I don't think the illegal tribal lender will sue me, but can or will collection agencies?
Simply send the CA's a cease
Simply send the CA's a cease and desist letter informing them they are collecting on illegal loan. The paper is worthless and let them know that you never expect to hear from them again.
Don’t worry, illegal lenders
Don’t worry, illegal lenders/collection agencies can’t sue you. You can file a complaint against them to the SAG or FTC is required.