Hello, This sight has been a great help to me so far but Iâ??m stuck on this one. Are state departments held to the same collection regulations as a private CA? I had a state backed student loan that was a charge off and the state was collecting. I reached an agreement with an agent of the organization to pay (in-Full) a discounted amount as well have the TL changed to Paid as Agreed. One month later the organization sent a statement saying â??thank you for the initial payment, remaining amount due is XXX.xx.â? Also the trade line is untouched. Unfortunately I never did get the letter, the agent committed to send, confirming this agreement. When I call the agent I get â??letter is in the mail, Must be a glitch in the system. Next statement will show paid in fullâ?. I paid with a check over the phone which has cleared. Any ideas for recourse?
Look in the FDCPA... If the organization is a part of the state government, and the agent is performing their official duties as an agent of the state government, the FDCPA doesn't apply.
Are you sure you were actually dealing directly with a state agency and a state employee, or with a CA hired by the state? Especially with education loans, it appears there are several CAs that specialize in handling their collection activities. Even with IRS proposals to use private CAs to collect on tax debt, it appeared that those CAs would still be subject to FDCPA. With CAs, you have FDCPA. With state or federal agencies, you might use your local senator or assemblyman, or for federal, your congressman, to get a response.
Thanks for the input guys, I did verify that it is a division of the state and I was dealing with one of their agents. It is a shame they can get away with what is clearly unfair. I'll now start my letters to congress, The governors office, This division's governing board, Etc. Thanks again.
