Thread: To Kristi, Lizard King and oth

I am quoting a letter from the collection agency I am suing Financial Assistance, Inc in the State of Washington to the guarantor of the student loans NELA who tried to rip me off. This should be of interest, and I could use some feedback especially relating to legal citations. I had asked for a copy of my student loan file from the collection agency and billing records on my account.

"Mr. Anderson wanted to know why we did not give him the file information when he first requested it...my response was that he was not privy to it...if he wanted proof of debt and record of hos account we would do it...Gus sent it...he states he never received it. *Note, that we have had difficulties in the past with knowing his address. Represented that it was a law that we keep copies and that if he mailed something certified to us that we have to respond in like time...told him that it was not a law if we had to keep copies of everything we sent we would have to acquire more space."

I know that collection agencies have the burden of proof to show they responded to inquiries on accounts. Can a telephone record notation count as meeting that requirement, or do they really have to keep a copy of their response? What is the legal citation. I mean, what can I quote as the source for this law? You see, now it is a matter of fact and all that remains is a question of law, which means I can move for summary judgement on this count (a minor one all things considered).

Steve,
When I was having my problems, I called the FTC. They told me that student loans are different. They didnot say how or why but they basically said that exceptions were made for student loan collections. They told me the Dept of Education would be my best source of information on this topic.

Plus, NELA is a guarantor agency NOT a collection agency per say. There is a difference. They are usually somehow connected with the original lender and the government when dealing with GSL programs.

That is what I know. YOU have been at this quite a while and should know more than me on the subject.

I thought your suit was with equifax for the R5's and 9 balances incorrect reporting error.

roni

Actually, research indicates that you are probably exactly right in what you are saying here.

Given the fact that Student Loans are virtually SOL/BK-immune, I doubt a validation letter would have any legal significance.


Saar

Thank you Saar! That is what I was trying to get at in a way. YOu said it in one sentence. Furthermore, my lender had no problem providing my promissory notes. I just hope Steve wins!

roni

They are fighting b/c STeve is challenging the way that equifax reports ALL student loan accounts not just his. All sl collection accounts are reported as I5/R5 or 120 days late even when they are paid and are no longer late. They have to change that practice inorder to be in line with the FCRA and reporting only accurate information. So he is getting the run around. They will probably say that the lender knows what that means.

As Saar mentioned student loans are SOL and BK proof. They are also 7 year report proof if unpaid. They also can be reporting as multiple entries (as per the bureaus and the FTC). They say that the creditors will know that it is actually one entry reported multiple times. WELL, nordstroms didnot know that 2 months ago when I called and ask why I was denied. Borrowers have an disadvantage when it comes to student loans and it is not smart to clump them in the category of other collection debts.

roni

TU and EX report defaulted student loans as a collection and when paid, update them to a paid collection.

Equifax report defaulted student loans as a collection (I/R9) and when paid, update them to R5 -not paid but still 120 days late with a 0 balance. It doesnot make sense. AND Who knows how this affects the scoring system.

roni

whatever. Oil and Water just dont mix.

roni

Revolving (payment amount variable)+ Pays or paid 120+days past the due date; or collection account

That was taken directly from "how to read your file" that accompanies your Equifax credit report.