Hey everyone.... I applied for school in another state and needed my transcripts from my old school sent to the new one. Well in order for my records to be reopened, I had to payt he student loan back in full b/c I had defaulted on it. Loan amount? $658 and some change. I call the school today and say that I want to pay the full amount b/c I desperately need my transcripts. The lady on the other end told me that my records were still there, but the loan had been referred to a collections agency (its a Perkins Loan). Anyway, I called the collection agency, thinking "No big deal...I'll just Western Union the money to them, with a fee, Im sure" Well, I spoke with a RUDE man who told me that the balance on that account was for $1751 and some change? I said EXCUSE ME? He then told me that its the interest his company is tacking on, plus fees! Now, Im not a credit expert, but surely this is outlandish!! I want to pay that bill, but I dont want to pay close to $2000 for a $700 loan?? Thats crazy! Can anyone tell me whats going on? Thank you!
No they can't! I am steaming mad for you. Do you know if they bought the debt or collecting it for the school? I think I would contact the school again and explain that you desperately want to take care of this issue but the CA is being outragous! I would keep contacting other people at the school until some one finds a way to help you. I would also be looking for grounds to sue the CA on. Use the internet to search for your state credit laws. I would bet money the CA is violating multiple laws. Hopefully others will post more usefull info. Don't give up on this! We will find a way to deal with this slimbad of a CA!
A ca CAN charge whatever amount of interest is called for in the original agreement. They can not charge a penny more than that. You need to send them a validation letter and make them spell out exactly where all the charges come from.
A ca CAN charge whatever amount of interest is called for in the original agreement. They can not charge a penny more than that. You need to send them a validation letter and make them spell out exactly where all the charges come from. § 808. Unfair practices [15 USC 1692f] A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.
This happened to me as well. I requested my transcripts and was told I had to pay first. Well I didn't have the money but I did have a friend who was the school's union rep who had some dirt on the school's secretary (she represented her in a hearing for some violation or other) who reminded her of the said dirt she had on her and that's how I got my transcripts released without having to pay a penny! =) Yes, I know that was luck but remember that people are human and we all have flaws positive attributes that can be taken advantage of. Maybe you can call the school union and invite someone out for a cup of coffee I am always very friendly to everyone I come in contact with from the company president's secretary to the janitor because you never know when you are going to need a favor.
jia-li, Yes, I agree it would be helpful and interesting to know exactly how the CAs determine the interest rates. Personally, I think it is determined by the amount of desperation in our voices. LOL There is a post here regarding on how the compounding of interest rates appear to be outlandish and unbelievable. Still working on understanding it myself. Apparently, it can work in our favor and in situations like this totally against us. Maybe, maybe not. Check to see if they are operating legally. NanaCi has an important link regarding how to find out if the CAs can collect from you in her signature at www.creditboards.com Good luck,
There is a post here regarding on how the compounding of interest rates appear to be outlandish and unbelievable. Gretchen__ =================== What post are you talking about? What do you mean outlandish and unbelievable? ? ? THE END ** *** ** LB 59 """""""""```~~~```'""""""""" A donkey had an IQ of 186. He had no friends at all though. Even in the animal kingdom, nobody likes a smart-ass
Defaulted loans are pretty nasty...especially if you need to deal with them quickly. Often your best option is to rehab. CAs are allowed to add up to 25% to the defaulted amount as contingent fees. This is outlined on the Dept. of Ed. Federal Student Aid site: http://www.ed.gov/offices/OSFAP/DCS/collection.costs.html And they are allowed to continue to add interest to amount. In my state, defaulted student loans are capped at 12%. For those who are interested, here is the text from the link above: Pursuant to the Higher Education Act and the terms of most borrowers' promissory notes, you are liable for the costs of collecting your defaulted Federally-financed student loans. The largest of these costs is usually the cost of contingent fees that may be incurred to collect the loan. The Department gives you repeated warnings before it refers a debt to a collection contractor. If those warnings do not persuade you to reach repayment terms on defaulted loans, the Department refers those loans to collection contractors. The contractors earn a commission, or contingent fee, for any payments then made on those loans. The Department charges each borrower the cost of the commission earned by the contractor, and applies payments from that borrower first to defray the contingent fee earned for that payment, and then to interest and principal owed on the debt. As a result, the amount needed to satisfy a student loan debt collected by the Department's contractors will be up to 25 percent more than the principal and interest repaid by the borrower. On each billing statement, the Department projects an estimate of the total amount needed to satisfy the debt on the date of the statement, including collection costs that would be incurred by payment in full of that amount.
Good Afternoon, LB, Here it is: Rule number 72 and your Score ~ Butch It has been added to the CN Must-read list. Still a mystery to me at present how compounding works. But so is how I am expected to carry around a pen and Transaction register everywhere I go in order to keep a balanced checkbook. :-O I am debating between buying MS Money or not. I imagine it will only be helpful if I use it much like the Transaction Register. What has this to do with Interest rates, you ask? Keeping money in the bank long enough to see the interest rates compounding in action. My new workstation is here!!! Yippie! I'm getting a filling system set up like some posts have suggested. I bought the multi-colored hanging folders. I am thinking ~blue for Equifax, ~Green for EX, and ~Gray for TU.
