About four years ago I was researching avenues to obtain my BA in nursing. I obtained my RN through an external degree program through a reputable university and it worked well for me so I was looking into this kind of thing again. I got a flyer from "The College Network" looked it up on the internet and it seemed on the up and up so I called them. They explained what classes I needed and there was a payment plan where I paid them so much a month while I earned the degree. They sent me a paper (a contract of sorts), I signed it and all the books and materials came to me in the mail. In the interim I looked into a local university that I could take two nights a week for two years and discovered I would have to take TEN LESS classes than with the college network company so of course I opted to take that route. So I sent all the materials back to them, unopened and stated I had changed my mind. About a month later I started getting collection letters that I owed the full amount as I had signed the contract ($5800). But I was misled. When I took my RN course I paid a certain amount to that company each month until paid for which is how I thought the college network worked, but it was not. Apparently the college network financed people through a finance company and students then paid a payment to the finance company. This is not how it was explained to me. So I guess what happened is the finance company paid the college network their money in full. Even if I sent the materail back, the college network didn't care because they already had their money and I'm sure they were not going to refund it to the finance company. So, I'm left at the mercy of the finance company. I got letters for about two years and then they stopped so I thought they just gave up. But lo and behold a few days ago a sheriff appeared at my door with a summons for court. They are sueing me for the $5800! Does anyone think I have a chance to beat this? It truly was not made clear to me how the financial end of it worked until I started getting collection letters from a finance company I had never heard of until I finally figured out it was the "college network" deal. I hope I have explained this where someone can understand what I'm talking about. I just don't see how I owe this money when I didn't use any of the services or material. (although, they do have my signature on that paper!) Any advice or help is appreciated.
I recommend a consultation with an attorney for this one..... The issue here is that you signed the CONTRACT. You "may" have an out in court, in that you did not receive any "value" (goods or services) for the $5,800.00 claimed owed. However, I'm sure the finance company will state that you had the "opportunity" for these educational services, and that YOU opted to not use them. The detail missing here is exactly how long of a time elapsed between your signing of the contract, and their receipt of your cancellation. Most states have a "cooling off" period where you can cancel a consumer contract. Did you speak to anyone regarding a cancellation request, or merely send the materials back? Did you send a formal cancellation letter? This is a tough case, they will be able to validate (with the signed contract), and you don't say if you previously disputed the debt. (So, I'll assume that you did not), so they have you on a couple of strong points. The only defense I see is your demand to detail how they were "damaged" to the amount claimed. I don't know how you could find out, but if someone "took your spot" in the classes, then the school did not lose anything, and should be refunding the money back to the finance company. I don't mean to sound negative, but this is a difficult one, and the best advice I can give is to get an attorney for representation and consultation. Check with your state's Bar referral system.
You need to look at FTC v. Leasecomm. http://www.ftc.gov/ro/leasecomm Essentially, Leasecomm was 'leasing' things which weren't to be leased, like software merchant accounts, which were sold via high-pressure sales agents who were to do everything that they needed to do to close a sale. It sounds as if this company is taking a play out of the Leasecomm playbook. One of the main parts was that the consumer was lead to believe that the arrangement was between them and the company who was doing the selling, Leasecomm was the invisible man, until after the sale was closed... These company's don't do them as a contract, but as a lease, for one reason, the UCC has more favorable terms that they can use. Leasecomm also claimed that the leases were unable to be canceled, irregardless of whether the lease was induced by fraud. Given that the collection efforts began almost immediately after sending the materials back, it reeks of the Leasecomm con...
