I have a loan that I took out through my college that was eventually turned over to a CA. The CA is charging me almost $800 in fees, etc. When I called the OC (when it first turned over to CA) they stated that I needed to deal with CA. The OC is still reporting on my credit. It was last updated last month. The balance that they are showing is the original amount of $2300. If I were to send payment to the OC, would the CA still come after me for their fees? I know that they receive a portion of the original collection amount, and it seems ridiculous that they could add extra "collection" fees in that amount. I have been paying them $100 per month, but I don't want to continue paying that if I need to negotiate the amount that is due. They are also charging me 9% interest at the CA. Any advice?
Was this a student loan through the Federal student loan program? If so, you can probably "rehabilitate" the loan. My website has a link at the bottom of the page for student loan information. If this was NOT a student loan covered under the Federal student loan program,then the school probably SOLD the account to the CA, and thus could not accept any payment on it, as they no longer own the account. It is POSSIBLE, if this was a "private" (not guaranteed) student loan,and your default date, (the date you were first late on your payment to the school) was some years ago, and depending on your State of residence NOW, you MAY be beyond the statute of limitations for legal collection.
It was just a private loan through the school. If they did sell it, is it correct that they are still reporting it to my CRA as recently as last month (placed with CA about 6 months ago)? They are still showing an outstanding balance as well? If it is sold, should they be doing this as well? Thanks.
