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My father took out a huge private student loan from a bank for me over seven years ago while I was in college for about thirty thousand dollars. The bank has been sending me collection notices, and three years ago, they put a judgment against him. Although he never appeared, or he did and I don't know about it, the court dismissed the judgment against us because the bank failed to submit sufficient documentation that the loan and promissory note were legitimate.
Now, three years later, I'm still receiving debt collection notices attempting to collect the debt from my father and I for the bank. I have retained the original order of dismissal from the court from three years ago.
Do I still have to pay this debt if the bank couldn't produce proof that it was legitimate to the court, or do I notify the debt collector and the bank that we dispute the validity of the debt? What to do? Can the bank still collect if the loan they gave us was invalid?
Can the bank still collect if the loan they gave us was invalid?
But the loan wasn't invalid, was it? It sounds to me like the court dismissed the judgement on a technicality becauser the bank didn't produce the proper paperwork at the time. But it was a valid loan, and you used the money and (hopefully) received the education that the money was borrowed to obtain. You still owe the money.
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How was it dismissed - with or without prejudice? Either way they can try to collect, but, if it were dismissed 'with prejudice' then they cannot file another suit on it again. If it were dismissed 'without prejudice' then they can file another suit.
If it was a true private student loan, not backed by government funds, then there is a collection SOL. If the loan was made in DC (where your heading says you are) then the SOL for written accounts is 3 years from the cause of action (default) , but, you cannot count the time period from when the suit was first filed until the time it was dismissed. You should look up your states SOL and Tolling Statutes, and probably talk to a lawyer. If it is past SOL then you have a legal right to send them a SOL letter informing them that it has passed your states collection SOL.
If your father had used a lawyer, or has a lawyer, have him talk to the lawyer about it.
How was it dismissed - with or without prejudice? Either way they can try to collect, but, if it were dismissed 'with prejudice' then they cannot file another suit on it again. If it were dismissed 'without prejudice' then they can file another suit.
If it was a true private student loan, not backed by government funds, then there is a collection SOL. If the loan was made in DC (where your heading says you are) then the SOL for written accounts is 3 years from the cause of action (default) , but, you cannot count the time period from when the suit was first filed until the time it was dismissed. You should look up your states SOL and Tolling Statutes, and probably talk to a lawyer. If it is past SOL then you have a legal right to send them a SOL letter informing them that it has passed your states collection SOL.
If your father had used a lawyer, or has a lawyer, have him talk to the lawyer about it.
Or, the OP could just pay the damn thing back since he acknowledges that the debt is legitimate.
This sounds like another one of those "The police office spelled my name wrong on the speeding ticket, do I still have to pay it?" but on a much larger scale.
What does morality have to do with it? It's a legal issue, as far as I'm concerened.
And even beyond that, think about the overall cost to society when someone defaults on a loan. If the next guy in line can't get a loan because the lender is gunshy, or if he has to pay a higher interest rate to cover the cost of the defaulted loans the lender has to cover, people like the OP whose plan for repayment is to figure out how to avoid repaying it are at fault.
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B) It is not the OP's debt.
True.
So the dad should pay it, and to hell with him because we need to leave the morality out of it. Do you like that answer better?
And that being said, if the OP isn't responsible for the debt, why is he getting the collection notices rather than the dad? I'm pretty sure we're not getting the whole story here.
What does morality have to do with it? It's a legal issue, as far as I'm concerened.
And even beyond that, think about the overall cost to society when someone defaults on a loan. If the next guy in line can't get a loan because the lender is gunshy, or if he has to pay a higher interest rate to cover the cost of the defaulted loans the lender has to cover, people like the OP whose plan for repayment is to figure out how to avoid repaying it are at fault.
If you acknowledge that it's a legal issue why are you telling him to pay before we have even established if the statute of limitations has expired?
Quote:
True.
So the dad should pay it, and to hell with him because we need to leave the morality out of it. Do you like that answer better?
And that being said, if the OP isn't responsible for the debt, why is he getting the collection notices rather than the dad? I'm pretty sure we're not getting the whole story here.
Debt collectors (almost certainly who is handling this now) are famous for illegal and unethical behavior.
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