Legal Question in Credit and Debt Law in New Jersey

Collection Agency

My family paid off a car--name removed--in May--to a credit union (New Jersey)--and paid collection fees to their collection agent in the amount of about $3800. There has been some over-payments, I have all my receipts/statements. I also had a credit debt-that I could not pay back due to unemployment of my husband and myself. Seaport Federal Credit Union is now holding my car title until I pay off the credit card debt to them also. Can this be done? How do I find out if the collection agency---is bonded to collect in the State of Texas? The collection agency will not return my calls.


Asked on 9/16/04, 2:21 pm

1 Answer from Attorneys
Alan Albin Alan S. Albin, Attorney at Law

Re: Collection Agency

You need to retain an attorney immediately to assist you with your problem.

Your attorney would need to review all the relevant paperwork: i.e., loan agreement, payment history, correspondence file, etc.

It is possible that you agreed to allow the credit union to retain a lien on the title to the car until paying off all debts to the credit union, i.e. the loans were "cross collateralized." Without looking at the loan documentation, however, it is impossible to know. Your attorney will also be able to advise you whether what is occurring is legally permissible according to the laws of your jurisdiction.

I strongly recommend that you consult with an attorney immediately so that you can explore your legal rights, obligations, and options. If you wish to discuss retaining my services, contact me at:

[email protected]

(973)-605-8995

[Disclaimer: The above comments are not intended as nor should they be relied upon as "legal advice", which can only be obtained by personal consultation with a retained attorney; at which time the specific facts and circumstances of your case can be thoroughly evaluated. This reply is provided for general informational and educational purposes only, and does not create an attorney-client relationship with the responding attorney.]

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Answered on 9/17/04, 8:59 am


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