Can a creditor open an old car loan and send it to collections?

"I paid off a car loan three years ago. In the past week, I've received calls and letters about this loan, saying that I still owe money on it. How is this possible?"

Answer
“You really can’t know what’s going on without calling the collection agency or creditor and asking why you’re being pursued for an unpaid balance.
In some instances, you might have thought you paid off your loan, but you still had a tiny bit of interest left over—maybe $10 or so.
So your first step is to contact this collection agency. Request all paperwork regarding the loan and ask them about it. You can also call your lender and inquire about the loan.
Keep in mind that this could very well be a scam. Make sure you have all the necessary paperwork before you sign anything or pay out any money to any parties.”
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Eric Schad
Answered on Jul 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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