I received a letter from my life insurance company stating that I owe $2,600 on a loan taken out when I was 19. My father, who was in a financial crisis, took out a loan to help him, but he never repaid it. Now that the loan has been transferred to me, I’m being held responsible for it.
I have told the company that I shouldn’t be responsible for a loan I didn’t take out, but they’ve informed me that this will affect my credit report. I have a clean credit history and am concerned about my score being affected.
Is this legal? What steps can I take to address this without paying the loan or canceling my policy?
Gather all pertinent policy-related documentation, including the policy agreement, payment records, and any correspondence from the lender or insurance provider.
I’m dealing with a similar issue where a life insurance company is claiming I owe $2,600 on a loan my father took out when I was 19, and now it’s affecting my credit report. I’ve argued that I shouldn’t be responsible for this loan, but they say it will impact my credit score. From my experience, such a situation can be legally complex, especially if the loan was transferred to you without your explicit consent. I’d recommend contacting a consumer rights attorney or a credit counselor to understand your legal options and protect your credit history. Additionally, consider filing a formal dispute with the credit bureaus to challenge any inaccurate information related to this loan.