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My husband consolidated his student loans about 2yrs ago but missed one, or could not consolidate it or something. Basically, he got a couple of quite nasty letters about a debt he owed for an out of state school he attended.

At that time, we wrote a letter stating that we could not manage to pay off debt in full but wanted to make monthly payments. We also asked for the debt to be reduced to the original amount (my husband is not sure what this amout was).

We got a letter back saying they would not accept anything but the full amount of the debt, so at that point, we ignored it. No letters came. We moved overseas for a couple of years.

We came back to the USA to live and about a month ago, a letter arrived at my husbands sisters address from the same collection agency. It stated that they were going to liquidate the deliquent balance and would now investigate my husbands employment, bank account and property etc.

The debt is $6,000 and we do not have the money to send them. What do we do now?

Should we try to send a letter to the original loan company (the college) asking for a reduced amount or a longer period of monthly repayments?

Do we send a letter to the collectors?

Do we ignore it? we do not want our car taken, or to be sent to court.

Do we borrow the money from somewhere else to pay this debt?

Any advice would be very much appreciated.
Sue.




Hi Sue,

Welcome to the forums. First of all, I am glad to know that you and your husband are still conscious about your past debt and are willing to clear it. Remember that as long as this account is shown in your credit report, it will make a bad impact to your credit worthiness in your future. So your husband should try at the best to clear this unpaid account and erase it from the credit report.

The debt collectors have become very proficient to collect the information of the debtors specially those having the student loans in default because there are no statutes of limitations in the student loan debts. They are willing to collect the money in default from the student loan accounts which might be decades old.

At this point of time, since your account is in the collections, it won't be of any use contacting your original creditors. You will have to negotiate with your collectors in a fair manner and convince them for an easy monthly payment. Remember, that as long as your account is in the collections, you will have to take effective steps to recuperate the damage.

Since your account is in default, they can most likely take legal action against you in the form of judgments, liens, etc. At this stage, either you need to arrange money by taking the financial help of your near and dear ones or you can opt to use professional help given by the debt consolidation companies who will negotiate with your creditors keeping your interests protected and at priority.

Making the first move, you need to ask your debt collectors to validate the debt as it is your legal weapon to know the origin and the financial interests accrued on your past debt.

http://www.debtconsolidationcare.com/validation.html< br />
After they have validated your debts, you can send one letter giving your amount that you can afford to pay at the moment. You will be definitely willing to send more on this amount the moment your financial position improves. Please send your letter through certified mail requesting for return receipt as it will be acting as a proof of your payment efforts made towards the collectors.

Regards
Roxette

Sub: #1 posted on Mon, 07/04/2005 - 09:43

roxette roxette

(Posts: 4009 | Credits: 559.9)

Thank you for your help. We do want to clear the debt, but right now, we can only afford a low monthly payment as we already pay out $200 a month for his consolidated loans.

How do I obtain a draft letter? debt validation letter?

thank you again!

Sub: #2 posted on Mon, 07/04/2005 - 12:00

Unregistered


Hi Curlysu

Welcome back to the forums. This is the debt validation letter that you can send to the collectors to know the details of your debt. Please strike out which ever is not applicable to you.

Quote:
Collection Agency Name
Address
CITY/Town, STATE ZIPCODE

Re: Acct Ref. # XXXXX and XXXXX

To Whom It May Concern:

This letter is being sent to you in response to a notice a couple entries by your company on my credit reports. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

This is NOT a request for ???verification??? or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you
.
What do I need you to provide as the debt validation.
??? What the money you say I owe is for;
??? Explain and show me how you calculated what you say I owe;
??? Provide me with copies of any papers that show I agreed to pay what you say I owe;
??? Provide a verification or copy of any judgment if applicable;
??? Identify the original creditor;
??? Prove the Statute of Limitations has not expired on this account
??? Show me that you are licensed to collect in my state
??? Provide me with your license numbers and Registered Agent
??? Proof that the collection company owns the debt/or has been assigned the debt. (You are legally entitled to collect this particular debt from me.) This is basic contract law.
??? Complete payment history, starting with the original creditor. (I need to have proof of my payment history with original Creditor, what the amount of the debt was when the creditor assigned the debt to your company, and what fees/interest has been tacked on to this debt and how you/they determined these fees.) This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004..
??? Copy of the original signed loan agreement or credit card application. (My contract with the original creditor establishing the debt between us.) This is also basic contract law.

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau's (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent

I will not hesitate in bringing legal action against you for the following:
??? Violation of the Fair Credit Reporting Act
??? Violation of the Fair Debt Collection Practices Act
??? Defamation of Character

If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days investigating this information and during such time all collection activity must cease and desist.

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records; any information obtained shall be used for that purpose.

Please read the enclosure for an opinion regarding matters such as these from the Federal Trade Commission

Best Regards,

Your Name Here.


After they have validated the debt, you can negotiate with them for a suitable monthly amount which you will be willing to pay from your end. This is the letter which can be sent to them.

Quote:

Today's Date

Your Name
Your Address


Attention: {name of collector}
Name of Debt Collection Agency
Address

RE: Your {letter dated} or {phone call on date} reference account #: {place account or reference number here}

Dear Mr. /Ms. {Collector's Name}

According to my records and your {phone call or letter} the balance of this debt is $_____. I am not disputing this debt however; my current financial situation prohibits me from paying the amount you're demanding. I am able to make payments on this account every {insert date of month} to your company in the amount of $ _________.

I would appreciate a call from you confirming your acceptance of my payment terms. However, if I do not hear from you, I will consider your cashing or depositing my check as confirmation that you accept my payment terms. If you do not accept my terms then I expect the enclosed payment to be returned to me immediately in the enclosed self-addressed stamped envelop.

As a show of good faith I've enclosed my first payment in the amount of $________. If my financial situation improves enough for me to increase my payment amount I will contact you immediately. Thank you for understanding.


Sincerely,


Signature
Your Printed Name


Note: Please send all your letters through certified mail requesting for return receipt otherwise your move will go wasted failing proof of your payment efforts made.

Please let me know anytime whenever there is any need. Also I will be glad to get regular updates from you.

Regards
Roxette

Sub: #3 posted on Mon, 07/04/2005 - 12:15

roxette roxette

(Posts: 4009 | Credits: 559.9)

I am struggling to understand the letter fully, please excuse me. It does sound quite defensive or even aggresive, is this the correct or best way to deal with the colleciton agency? So I would send the below and it would be ok? do I need to include the law suit stuff?

Quote:
Collection Agency Name
Address
CITY/Town, STATE ZIPCODE

Re: Acct Ref. # XXXXX and XXXXX

To Whom It May Concern:

This letter is being sent to you in response to your notice. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

This is NOT a request for ???verification??? or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you
.
What do I need you to provide as the debt validation.
??? What the money you say I owe is for;
??? Explain and show me how you calculated what you say I owe;
??? Provide me with copies of any papers that show I agreed to pay what you say I owe;
??? Provide a verification or copy of any judgment if applicable;
??? Identify the original creditor;
??? Show me that you are licensed to collect in my state
??? Provide me with your license numbers and Registered Agent
??? Proof that the collection company owns the debt/or has been assigned the debt. (You are legally entitled to collect this particular debt from me.) This is basic contract law.
??? Complete payment history, starting with the original creditor. (I need to have proof of my payment history with original Creditor, what the amount of the debt was when the creditor assigned the debt to your company, and what fees/interest has been tacked on to this debt and how you/they determined these fees.) This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004..
??? Copy of the original signed loan agreement or credit card application. (My contract with the original creditor establishing the debt between us.) This is also basic contract law.

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau's (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent

I will not hesitate in bringing legal action against you for the following:
??? Violation of the Fair Credit Reporting Act
??? Violation of the Fair Debt Collection Practices Act
??? Defamation of Character

If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days investigating this information and during such time all collection activity must cease and desist.

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records; any information obtained shall be used for that purpose.

Please read the enclosure for an opinion regarding matters such as these from the Federal Trade Commission

Best Regards,

Your Name Here.


Thank you again!

Sub: #4 posted on Mon, 07/04/2005 - 12:32

Unregistered


Sue,

debt collectors have been largely reported to be dealing with the innocent debtors in an unfair and obnoxious way. If you do an extensive research in this forum, you will find yourself in a much comfortable place.

I provided my letter with a lawful effect. I am glad that you have modified the letter without hurting the base line.

Please send your letter through certified mail keeping all the receipts intact because it will prove your efforts to pay this debt in the later times.

Regards
Roxette

Sub: #5 posted on Mon, 07/04/2005 - 12:58

roxette roxette

(Posts: 4009 | Credits: 559.9)

Thanks, I really just wanted to confirm as I do not understand all of the contents of the letter, and I do not want to come out all guns blazing and I was worried that all the talk of law suits etc was just that. Thanks, I will send the letter tomorrow.

I do have a question, what if they refuse to accept monthly payments? will the proceed to court? will the court ****my husbands income and force a payment plan?

Right now we are being looked for and by writing to them we say here we are, and paying the loan in full is not an option right now even if it is the only option they have given us.


[color=Red]****Adult term removed - Jason[/color]

Sub: #6 posted on Mon, 07/04/2005 - 20:10

Unregistered


Hi Sue

After they have verified your debt, your main concern should be removing the negative entry of your collection from your credit report as soon as possible. It can only be done after they have provided you the proper details of your account and when you have paid your account either in installments or in full.

Now, even if you send a payment to them to which they don't agree, they might sue you verbally if not in reality. They might not take this matter to the court because you are willing to pay and they are getting their money without taking the matter to the court.

I will insist you to send in a larger amount of payment as soon as you can. After you have sent your payment through mail, call them up and say that you have sent a payment and if they would consider not taking legal action because you are utmost willing to pay your debt. You can add that you are not having the complete amount at the present moment and taking the matter to the court and putting legal action will not also get them their money any sooner.

It is just a matter of proper bargain with your debt collector and I wish they should accept your proposal.

Regards
Roxette

Sub: #7 posted on Tue, 07/05/2005 - 12:04

roxette roxette

(Posts: 4009 | Credits: 559.9)

[quote="roxette"]Hi Curlysu


are you kidding me with these letters?

do you really beleive that you are entitled to half of the information you pretend to know that you are entitled to?

do you really beleive that any collection agency owes you answers to those ridiculous statements?

lastly, do you think collection agencies dont know you cant AFFORD an attorney?

Sub: #8 posted on Thu, 08/04/2005 - 00:22

Unregistered


Slamabam - If the collection agency is legally recovering the debts from the consumers, then they should least hesitate in providing the following information.

Moreover, the fdcpa law supports asking for the following information when a collection agency is contacting the consumer. You need to have a look at the website of Federal Trade Commission if you are doubt this information. I smell something fishy from your post
:shock:

Sub: #9 posted on Thu, 08/04/2005 - 14:53

ben ben

(Posts: 2034 | Credits: 426.36)

I have an updtae and a request for further help.

I got back a letter from the collector, it basically said that because a promissory note verifies i particpated in the student loan and that it was lent by a credit company with the college as guarantor. Now the college had to pay off the full amount to the credit lendor.

The info they sent shows a loan application signed in 1998 with a promissary note signed in 1999 - they dont seem to tie up and neither does the amount lent.

The cost is now 6000 because of 3500 loan, 800 interest and 1700 in collection costs.

My real concern is that the loan was consolidated and i dont want to pay it twice. How can I find this info out?

Also they are demanding a cheque made payable to the 'college' for the full amount by August 12th.

help! I am sorry for my poor typing and :)

Sub: #10 posted on Sun, 08/07/2005 - 20:24

Unregistered


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