You would have to go back to the paperwork for your original loan agreement to see what is or is not allowed in this case. My major concern if I were you would be when or if the current collector is going to file for a judgment. Depending on your state laws this could create an almost indefinite debt with interest accruing at the rate allowed in the court system. In CA judgments are good for ten years and can be renewed.
It would be in your best interest to attempt to settle this debt if at all possible. This would mean you would need an amount of money or access to an amount of money to make it go away. I know a creditor had a judgment against me for $14K that I needed to settle to buy a home. I called them and asked what would they take in lump sum to settle. We agreed on $4.5K and I borrowed from a credit card to make it happen. Got an agreement letter from them and sent certified funds. Case closed.
