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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?"

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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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