I graduated college in 2001. I took out a loan with my school that was based on my employer reimbursing me when I received my grades at the end of the semester and my then paying off the loan. I changed employers and this did not happen. I did not pay the bill (stupid me!!) and now it is with a collection agency. The school sent me a letter in August 2002 that stated my balance as $2220.56 due on September 1. I received a letter from a CA dated September 11, 2002 that stated I owed them $2,982.51. I tried to call the school and they said I had to speak to the CA. I have made 2 $100 payments to the CA. Is this legal to charge this much for collection fees? I know they make a percentage of what they collect, but this is ridiculous. What should I do or is there even anything I can do? Thanks!
What you do is send them a validation letter. They must show you how they came up with every penny they are attempting to charge you. When you send them the validation, they must get the proof of debt from the oc and then the ca must send it to you.
If they come back with a list that does state the correct balance and then lists the excess fees, etc. what would my next step be?
