Hi - Here's my story. I defaulted on a student loan (original amt $1437) in 1996. For many years it appeared on my credit as "collection account" or something similar. I pulled my credit reports just the other day and it was gone completely, nothing. So then today out of the blue someone calls me (at work) from "Waterloo Agency calling on behalf of the Dept of Ed" "regarding a defaulted student loan". She threatened to garnish my wages and asked if I would be paying in full today. I told her I had no idea who she was or what she was talking about and to NEVER call me at work again. She said I could call her back, that she would hold the account from further action "but just for another day". So now what? Can a collection agency actually garnish my wages? I would love to not have this following me around anymore but I'm afraid if I do anything it will go back on my credit and show as a paid collection or worse. Any advice is GREATLY appreciated.
I highly reccomend that you do what I did. See my post created yesterday entitled: "Emgcy: NCO Garnishmnt Threat for Student Loans"
I read your post, thanks! I'm prepared to send the demand letter but does anyone have any advice on what to do next? I'm really scared to touch this debt at all given that it's not currently on my credit.
Just off the phone with DOE I just got off of the phone a short while ago with the DOE. I will start to send them payments directly to Greenville, TX while telling NCO that I am demanding Verification of the debt. Unfortunately, NCO I am told is the DCA on this. However, DOE has assured me that they have NOT authorized any Garnishments. I need only 9 consecutive payments sent to the DOE for them to take this out of default. That would be on a montly basis. They also gave me aphone number to contact a specific person at the DOE to complain about NCO's behavior. NCO is clearly in violation of the FDCRA as the bastards have started to call my boss. My boss is getting really pissed at them (not me). They should receive my letter demanding that the cease calling me at work and i'll get the return receipt. Then if they call me at work I have the grounds to sue them for violating federal law. My advice is as long as you deal directly with the DOE and NOT the credit bureau you should be able to keep that off of your CR. Do not give them (the Debt Collection company) any reason to verify your debt and then add it to your report. Send the cease and desist to the Credit agency and then start sending a montly payment directly to the DOE at U.S. Department of Education Collections P.O. 5609 Greenville, TX 75103-5609 Then in 9 or 12 months your loans will go on your report as current. This is what I will be doing.
