Title loan default

[mountaindews]

I took out a title loan on an old car. I lost my job and couldn't pay it. They called one of my references and told them that they were going to pick up the car today. Is that legal for them to tell my reference about my account? What do I do? I know they have to take the car...I just want to know what to do about them disclosing my information like that.

[Trish]

If it were a CA, then that would be a violation.

Is it the loan company (an OC)? Have they sent you any letters or tried to reach you?
I would think that even if it's an OC, that it would be a breach of security/3rd party disclosure.

[Trish]

Hey...
I did a little bit of googling and the law is the same for OCs (as far as 3rd party disclosure)

I haven't found the actual statute yet but you may want to look through the FCBA. I will try to look again when I get some time.

Hope that helps.

[mountaindews]

I got it all cleared up with that info Trish gave me. They even gave me a "settlement" which is just paying back what I borrowed no interest. Thanks Trish!! I have another question though....about 5 years ago right around the time of my divorce there was another loan that was taken out NONE of these loans are done with credit. AND none have been on my record..ANYWAY I know there were 2 loans one payday and one title. Now after I started the credit repair the company had sent me a letter demanding payment. One was mine one was my husband's. Again there is nothing on my credit report...but should I send them a letter and try to find out what is going on?

[Trish]

That's great news on the title loan!! It definitely pays to know the law.

So...
Which company is demanding payment? Is this the first letter you've rec'd from them?
Just because it's not on your CR now doesn't mean they won't put it on there.

You need to send them an "unknown debt" DV letter.
Basically just telling them that you have no knowledge of such debt and to please provide you with validation or proof that this alleged debt is yours.

When you say they demanded payment.......were they rude? Was the letter threatening at all? and did it include the mini miranda (we are debt collectors collecting on a debt, etc.)?