Is THIS legal?

[jaymewoodall]

What is the name of your state? California
I was recently contacted by a collection agency about a house I sold in the summer of 1993. They said they were trying to collect over $5000, plus interest, for the title company who paid the escrow account this amount "on my behalf" to cover a mathmatical error on the part of the mortgage company. I never authorized anyone to pay anything "on my behalf" as there was a three month escrow and plenty of proceeds. Also, I have my settlement and HUD statement which shows no such mathmatical error. The mortgage company released the payoff amount and my records indicate that the payoff amount was correct...so that is exactly what they were paid, as was over $4000 in closing costs. This collection agency has placed this on my credit report and is threatening to sue me over this. Aren't mistakes what title insurance covers? Don't escrow companies have insurance for this? Why wouldn't they collect during closing instead of waiting so long? HELP

[lcannister]

Ask for written evidence of such an error. Mathmatical corrections can and are made after closing but usually not 3 + years.

Then write a nice letter TELLING them to remove this information from your credit reports or you will sue them for and future damages they may cause in your inability to get credit.

Honestly, better yet, let an Atty do it for you.

Without viewing all documentation that is about all the advice we can offer.