I last attended school in 1993. My University allowed me to charge my school fees to my account with The Bursar's Office. It was a total of $3,500. I have contacted The Bursar's, after 1997, over the years and they have directed my to collection agencies. I first was told by one in 1997 that I owed 26,000. I said that was incorrect and didn't fight it after that initial converstation. It was reported on my credit report as a $26,000 debt as of 1997. I called The Bursars again and a pre-recorded message directed me to the collection agency who said the loan was $26,000 but that they would lower it to $21,000 as a favor. I e-mailed my University 6 months ago and asked for original records from the Bursar and they refused and said I had to work with the creditor. I replied that they were lying about my debt. The University said they would switch collection agencies. They did and I asked for a full accounting of the original debt. They sent me an itemized billing that is filled with lies and insisted that was what The Bursar's Office sent them. They said I signed a promissary note and paid on the account in 1997 which is not the truth. They refuse to provide this prommissary note nor any other documents. The credit afency said the burden of proof lays with me. They are not obligated to provide anything. The collecton agency refuses to budge from quoting the debt as $21,000 and The University refuses to deal with me directly. They will not allow the release of my transcript nor allow me to attend their University. What recourse do I have?
When did you originally go into default? The debt is 9 years old and past SOL. If their validation indicates a default in pre-1999, that would be an easy dispute\delete with the CRA.
How do you go from $3500 principal to $26000 "owed" in 4 years? I get 69% APR. They may be able to hold your transcripts, pending payment, even if they cannot collect. However, if their billing is inflated and fraudulent, you may have a case against them that might force them to reach a reasonable settlement. Are they claiming this is a government guaranteed loan? Are they reporting this debt on your credit reports? Is there some reason they would prefer to claim this is a "promissory note', perhaps longer SOL, as compared to an open account? Is there some reason, such as resetting SOL, they would want to claim a payment was made in 1997, even if it was not? What type of university was this? A public institution, a private non-profit university, or a private for-profit trade school, etc? If a private for-profit school, did it change ownership between when you attended, and now? "The credit agency said the burden of proof lays with me. They are not obligated to provide anything." They are required to provide validation if they continue to collect. They are also required to not use deception in the collection of debt, such as by claiming the burden of proof is on you. Did you dispute and request validation timely (within 30 days of initial contact) with the second CA? Are there any aspects of the itemized bill that can be shown to be clearly inaccurate or fraudulent? Charges for services during periods before you arrived, or after you had left? Charges for classes not taken, or dropped during the period they could be dropped with partial or full refunds? Does your state have laws dealing with refunds for dropped classes, and has this university been caught violating those laws before?
Are they claiming this is a government guaranteed loan? No. They are stating that I owe the University Did you dispute and request validation timely (within 30 days of initial contact) with the second CA No I haven't. I'll get right on it. What type of university was this? A public institution, a private non-profit university, or a private for-profit trade school, etc? If a private for-profit school, did it change ownership between when you attended, and now? Columbia University in NYC. Has not changed ownership to my knowledge. Are they reporting this debt on your credit reports? Is there some reason they would prefer to claim this is a "promissory note', perhaps longer SOL, as compared to an open account? Is there some reason, such as resetting SOL, they would want to claim a payment was made in 1997, even if it was not? It was first reported as a debt in 1997 and taken off about 2003/4. I don't know why they have presented the itemized bill as having a payment in 1997 as I live in NYC and I believe the SOL is 5 or 7 years. After further reviewing the itemized bill, it also states I made subsequent payments in 1996 and 1999. If my state (NY) is a 7 year state for SOL, than I can imagine why they have the last payment as 1999 Are there any aspects of the itemized bill that can be shown to be clearly inaccurate or fraudulent? Charges for services during periods before you arrived, or after you had left? Charges for classes not taken, or dropped during the period they could be dropped with partial or full refunds? Other than writing a letter requesting validation of the the itemized bill, I cannot counter anything contained in the billing because they are lies. There is nothing in the itemized billing that reflects charges for classes or the sort. Does your state have laws dealing with refunds for dropped classes, and has this university been caught violating those laws before? To my knowledge, my University has been on the up-and-up about refunding for dropped classes. Thanks very much for your input.
When did you originally go into default? The debt is 9 years old and past SOL. If their validation indicates a default in pre-1999, that would be an easy dispute\delete with the CRA I took classes at University and was able to talk the officials into letting me do so with the hopes that I would pay by the end of the semster in September 1993. I did not fullfill that obligation and my account at the Bursars Office was then turned over to a collection agency. It was reported in 1997 as an unpaid debt on my credit report by 1997. It is no longer on my credit report by I do wish to attend University and complete my degree. The University will not release my transript until my balance is paid and the collection fees which in total, they claim, is now $26,000 which they were "nice" enough to reduce to $21,000. Thanks for your input.
They may have you over a barrel if you want access to your transcripts. Presumably, you could pay and get transcripts released, with no effect on your credit reports. But what is actually owed on the account? Did the account get to $26000 thru years of accumulating interest between 1993 and now? Or did it jump from $3500 to $26000 in 1997, at which point you disputed the erroneous amount and could never get it resolved? In other words, is there a basis for claiming that your refusal to pay was due to a gross billing error on their part?
Or did it jump from $3500 to $26000 in 1997, at which point you disputed the erroneous amount and could never get it resolved? In other words, is there a basis for claiming that your refusal to pay was due to a gross billing error on their part? Yes. That is it. I did not and could not deal with resolving the issue because it was reported on my credit as my having a debt of $26,000 in 1997 just 4 years after leaving school. It had grown from $3,500 to $26,000 in that short period of time. I have sent the collection agency a letter asking them to validate the debt. I hope this is the correct first step. Thanks for your input.
They may be able to hold your transcripts, pending payment, even if they cannot collect. However, if their billing is inflated and fraudulent, you may have a case against them that might force them to reach a reasonable settlement. By case, does that mean hiring a lawyer? Or should I get some other type of representation?
If they didn't provide $26000 of services (tuition, etc) to you, but erroneously held your transcripts up demanding $22500 that was not actually owed, beyond the actual debt of $3500 + some interest, get an attorney. Maybe you can negotiate back down to what it should have been in 1997. Were you looking at pursuing further education at that university, or at another? How many units are, in effect, locked up by not having access to your transcripts?
If they didn't provide $26000 of services (tuition, etc) to you, but erroneously held your transcripts up demanding $22500 that was not actually owed, beyond the actual debt of $3500 + some interest, get an attorney. Maybe you can negotiate back down to what it should have been in 1997. Were you looking at pursuing further education at that university, or at another? How many units are, in effect, locked up by not having access to your transcripts? Yes, I wish to pursue and finish my undergrad at this school as I have 73 credits. I will have my degree with about 122 credits. Should I try to attend another university, I would have to start from scratch since they (the university) will not release my transcript confirming my 73 credits earned. I would like to pay off what I owe. I do not want to be taken advantage of when trying to do that. I guess my next question would now be: Where can one one get an inexpensive lawyer in New York City for these types of problems? Thanks for responding.
This is a great first step. The CA must respond with evidence of the debt or stop all collection efforts. A violation makes them liable under the FDCPA. If the University provides information to them which is false or fraudulent, you may have a claim against them under various state laws prohibiting unfair and decpetive trade practices.
"They sent me an itemized billing that is filled with lies and insisted that was what The Bursar's Office sent them. They said I signed a promissary note and paid on the account in 1997 which is not the truth. " What does the itemized billing show? Does it show charges for actual services or tuition during the period you were there, or does it start after you left, with some already existing account balance and just show interest and collection fees? What is SOL for a "promisory note", as they allege, in New York? Any TL from a CA could presumably be removed as obsolete. If you want your transcripts freed, to continue your education, it would appear that to accomplish that, you have to go after the university.
