I have an old (last activity more than 8 years ago) student loan. Total amount of loan was $2500. This loan does not show up on any of my credit reports. Recently, I was contacted by a CA seeking a repayment. I have requested validation from them. As of yet, they have not responded. If they are able to validate, should I: (1) Negotiate to pay a lump sum payment since the claimed amount is now 3X the original loan balance. If I do this, will the loan re-appear on my credit reports for ANOTHER 7 YEARS from the CA or the guarantee agency? OR (2) Try to set a REHAB program. It seems like this method would prevent credit damage; but would result in accepting the inflated balance as the new principal balance. The CA tried to push CONSOLIDATION. Of course, this would acknowledge the higher balance and let the original loans show as PAID DEFAULTS. Not a great option. Has anyone had experience with this set of facts? I'd appreciate any insight or advice. Greg
Your last activity was over 7.5 years ago, so this cannot be reported on your credit reports, unless you foolishly agree to start sending in payments. Check for applicable statutes of limitations on this debt. This is probably rediculously out of statute and nobody can effectively collect from you if you know your rights (i.e., even if you were SUED for this, all you would have to do is show up at court and prove the age of the contract.) People who don't know their rights are CA bread-and-butter. I'd send a validation to the CA, too. They probably can't even scrape up proof (like a signed document) that says you owe the debt. -ingenue
