I recently consolidated my student loans and was told the negatives would be removed on my CR. Of course, as many others here have experienced, they now report it as 120 days late, paid in full. So far, I've not been assessed any additional collection fees, but I see a distinct pattern in my experience compared to others and am anticipating additional collection fees. My question is this: are the collection fees subject to the same rules as the student loan? or are they considered under the SOL as any other creditors (i.e. credit cards, medical bills, etc.)?
RE: student loan collection fe That is a good question. I'm sure all loan servicers consider the collection fees to be subject to the same rules as the loan. Indeed, they interpret all regulations as a justification for anything they wish to do, and, since there is generally no public awareness of obscure student loan regs, they get away with it. OK. That sounded pretty cynical. However, I spoke with Jason West at AFSA (services student loans for Sallie Mae and others) last month. When I asked him about what "paid in full" meant. He said, "paid in full" only refers to principal balance (not interest or collection fees). So, when you see 120+ days past due, zero balance, and "paid in full" in the description, it means they are holding out for collection fees. When I asked him if collection fees could be assessed after the consolidation, he hesitated, and said "YES! Collection fees are assessed by the guarantor." So, you know, you are about to get sce**d. Still, the FDCPA and FCRA apply to guarantors and their 3rd party servicers. I'm sure there is some language in the FDCPA act that requires creditors to provide you with a full accounting of your account with them upon request. I would do that and see what happens. You should also contact me about Equifax and the false reporting. According to Barry Paperno at Fair Issaac (FICO scores), one 120+ day past due reported in the last 6 months is worse than 100 reported 5 years ago. Also, according the the FCRA, the Equifax must update your status. Since, your status is current as of the first payment in a payment plan leading to consolidation, that alone is a violation of the FCRA. You might want to contact me about joining the class action I am in the early stages of starting against Equifax. stephen_m_anderson@msn.com
RE: student loan collection fe I'm confused...when I consolidated my loans, the loan amount included interest & collection fees...how can they add to that? Isn't there a law somewhere that says they have to disclose all costs?
RE: student loan collection fe Yeah, but student loans regulations are so confusing it never gets challenged. Some guarantee agencies historically have claimed to be exempt from various laws like the FCRA & FDCPA because they allegedly act under the color of federal law and enjoy a sort of sovereign immunity. But they lost that argument in Brannan v USA Funds. But, who cares? It doesn't seem to slow them down from violating every law, regulation, and common sense. What sort of damages do you think you can really show in court if it came to that? On the rare occasion someone wins a few bucks in a protracted court entanglement they just pay like its no big deal and go on doing what they have always done. Its just too confusing for lawyers, judges, juries, law enforcement, etc to unsort the whole Code of Federal Regulations, track down case law, etc. I am always hopefull. But, really, I've spent 1000 hours trying to solve this riddle. My credit report shows two trade lines with 120 days past due current status on loans I paid off through consolidation over 5 years ago. It doesn't matter that I filed a lawsuit early this year. The guarantor doesn't seem too concerned. And, if I somehow lose my case in spite of the fact that I have bullet proof evidence of willful false reporting, defamation, fraud, racketeering, breach of contract, violations of the FDCPA, etc, I'm going to be stuck with attorneys fees on top of the collection fees they are disguising and can garnish my wages, offset my tax refund, and probably freeze my bank account for when they get around to it. But, the fire of hope never dies in my youthful heart. As Bilbo said the the dragon in "The Hobbit," "You don't know everything, yet. I have come for revenge!"
RE: student loan collection fe Is it Equifax that reports you 120+ days currently past due with a zero balance?
