Okay, I think I've screwed up....so any advice will be greatly appreciated (and used!) I wrote to "Immediate Credit Recovery" re: an inquiry they made on my CR. I wrote requesting inquiry reason and removal. Yesterday I get a "message for an important call".....it was "ICR" stating I had a STUDENT LOAN (Perkins type)in collections, $5,000.00! It's been over a year they say they've held the acct., and that all mail was returned (though they did have all the correct contact info!) Now, my problem is this....I'm 99% certain I've paid this loan, but I cannot find my "validation" evidence. I have a "Release" from the Dept of Ed. for a loan, but I'm not sure if it's for this loan. I did request "validation" (verbally) from CA, they are agreeing to send a "statement of account". (I didn't say that I knew this wasn't proper validation yet!) The good news is that this is NOT on my CRs, and the amount I can pay, so......WHAT TO DO?? Any advice/suggestions are greatly appreciated. My priorities are: 1) Prevent appearing on CRs 2) Pay as low a "settlement" as possible 3) Get inquiry removed also(?)
1 and 2 should definitely be priorities. I wouldn't worry about the inquiry at all. One additional inquiry isn't going to make much of a difference in the long run and even if it lowers your score a small amount it'll be gone in a year. You're already asking for favors by requesting a settlement and trying to keep this from appearing on your report, so I wouldn't push your luck with the inquiry. If you did pay it off you may be able to go back to the original creditor and ask them for proof that the account is paid off and closed. If you can get that, then you should be all set. If not, and you can't find any further proof then you have a decision to make... The longer you wait and the more you fight with the CA the more likely they are to put it on your reports. If you have the money to pay it off and you're willing to pay it off then the easiest thing would be to make a settlement offer right away contingent on them not adding the amount to your reports. However, if you don't want to pay them and if you have time and don't need to apply for credit in the near future you can probably fight this. Go through the whole validation route and see what happens. The down side to this is that they may add it to your report, and if they actually do manage to validate then it will be difficult to remove from your report. Also, you probably won't get as good of a settlement if you fight first, then ask to settle later. If it was me, I'd try very hard to find proof that the loan was paid off. Talk to the OC, and/or take the release you have and fax it to them. If it's not obviously for a different loan they may very well just give up and delete the account. You'll never know until you try. Obviously when you talk to them about the release don't let on that you aren't certain which loan it was for. HTH, Brett
Thanks Brett, Very good advice, and exactly what my instincts were telling me to do..... Question: Does the CA have to tell me if they are "Agent for OC", or if they've purchased loan, if I ask?
If this is a student loan, I don't think you can negotiate a settlement. At some point the government will have wages garnished, etc. Student loans are a whole different ball game. I'm no expert, so others may know more than I do. I think you can contact the Dept of Ed to rehab, then after a year of on time payments all negatives are deleted. But I don't know about the different types of loans, so don't know if this applies. You may want to search the site for student loans or Perkins loans. The Dept of Ed may also be able to tell you if you've paid this or not.
Thanks for the reply.... Question: Is it better to deal w/ the "OC" (University) in this case or the "CA"??
You may be forced to deal with the CA, but you need to find out who own's the loan. The school may have sold the debt to the Dept. of Ed. or another guaranty agency.
Re: Re: NEED ADVICE: Inquiry =Big Trouble! That would only apply if the Ca purchased the debt correct. Also if the CA bought it that would stop the Gov. from doing garnishment would it not?
Re: Re: NEED ADVICE: Inquiry =Big Trouble! I just want to send out a BIG THANK YOU to all who've replied, with great advice, I might add!!! One thing you've all done is lend some moral support during a "setback" moment. After two months of work, and seeing results, this was a blow to the diligence and motivation.
Re: Re: Re: NEED ADVICE: Inquiry =Big Trouble! The Dept. of Ed. always owns the debt [ CAs can't buy student loans and the Government really doesn't have any incentive to sell! ]. They have the right to refer all activity to the CA while the loan is in default, although they occasionally administer the collection themselves [ I think they take the easy payers ]. They also allow the CA to add 25% to the balance for collection costs. AND they get to charge 12% interest in my state! I understand it's possible to get the loan moved to another CA if it can be shown they are violating the FDCPA. Maybe the Dept. of Ed. would take it in house. I'm happy to post some of my links to the Dept. of Ed., if anyone is interested. Rehab really is a great remedy to get the loan out of the CA's hands in 12 months, to prevent garnishment and remove all the default info [ and get a really good rate! ].
1*(I didn't say that I knew this wasn't proper validation yet!) The good news is that this is NOT on my CRs, and the amount I can pay, so......WHAT TO DO?? 2*) Pay as low a "settlement" as possible 41 bizwiz ==================== 1*I never educate the enemy. 2* A*Never pay a CA with out validating B* Why pay again? THE END ** *** ** LB 59 """""""""```~~~```'"""""""""
How do you think you paid? Personal check, credit card, cashier's check? Almost everything leaves a paper trail that can be researched.
Thanks zerodown & lbrown: Re: paper trail, it was paid by cashier's check, that I remember, but......I have discovered the issue I think! Somewhere in all this mess and years....my records w/the Dept of Ed show a 3rd loan which I never took out, and this is the one which shows "PAID" per Dept. of ED.! So, it appears this one is "valid", now I have to chase down the Dept. of Ed to investigate how this happened. So, I'm talking to my old university today to see if I can deal w/them directly (to avoid 28% collection fee), and I think I can get them to NOT report. Again, thanks everyone for all the advice and support!
1*Re: paper trail, it was paid by cashier's check, that I remember, but......I have discovered the issue I think! 2*Somewhere in all this mess and years....my records w/the Dept of Ed show a 3rd loan which I never took out, and this is the one which shows "PAID" per Dept. of ED.! 3*So, it appears this one is "valid", now I have to chase down the Dept. of Ed to investigate how this happened. 4*So, I'm talking to my old university today to see if I can deal w/them directly (to avoid 28% collection fee), and I think I can get them to NOT report. bizwiz41 ================== 3*how can it be valid if it was paid by the cashier's check? 4* if it was paid by the cashier's check what is there to deal with or collect on?
1*Re: paper trail, it was paid by cashier's check, that I remember, but......I have discovered the issue I think! 2*Somewhere in all this mess and years....my records w/the Dept of Ed show a 3rd loan which I never took out, and this is the one which shows "PAID" per Dept. of ED.! 3*So, it appears this one is "valid", now I have to chase down the Dept. of Ed to investigate how this happened. 4*So, I'm talking to my old university today to see if I can deal w/them directly (to avoid 28% collection fee), and I think I can get them to NOT report. bizwiz41 ================== 2*So they applied the cashiers check to this loan. 3*No this one is not valid either because the cashiers check actually paid it instead of the one you never took out and never owed. 4*I don't see any thing owed to charge a 28% fee on.
1. Find the release for the disbursement that you said the DOE released as paid in full. Get the loan number and servicer of that loan. 2. Go here: http://www.nslds.ed.gov/ Click on Financial Aid Review (You'll need a DOE PIN) and see for that disbursement what the database says. If the disbursement the CA is collecting on has been released by the DOE, I would sue the CA.
Thanks again, This mess is getting even messier too.....I talked to the University, and got some of the disbursement dates, which don't align either, they have dates that I don't recognize for loan disbursements. And..they said that this "Perkins Loan" would have been a direct loan at the time, which is also what's listed on the Dept Of Ed. website. Unfortunately, my release does not show any loan numbers, it does not show itemized amounts either, just a total. So, I thought I was making progress, but feel as if I'm taking steps backwards. The problem is trying to get all this info pulled together. There doesn't seem to one source to try and reconcile all the data and information. I'm waiting on an answer from my University regarding whom to deal with(pay!). I'm hoping that at least the University will take the loan back so I can avoid the collection fee. Thanks again, I appreciate all the advice and information, it has been a great help!!
I'm waiting on an answer from my University regarding whom to deal with(pay!). I'm hoping that at least the University will take the loan back so I can avoid the collection fee. bizwiz41 =============== I don't get why you are trying to pay what the check paid. and why would there be a collection fee on something you don't owe? THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
Re: Re: NEED ADVICE: Inquiry =Big Trouble! As it stands now, I will have to pay this loan, and then fight/chase the "other" loan which I did pay. The two are separate entities now, and a lack of defined paper trail on my part is a "shame on me" item. So, until further info, I will have to deal with this loan, I am awaiting validation from both the University and CA (it will be interesting to see how they compare). The "open loan" is a NDSL loan/Perkins, the other I paid is listed as a Stafford Subsidized. Believe me, I do not want to pay the same loan twice, but unfortunately it seems I have to fight two battles!
