Student Loans?

[taylor]

How far can it go with unpaid loans? Its gone to collections and harassing phone calls, can they actually take money out of someone's bank account? this all stems from a $1000 "grant" 40 years ago, they now claim is a 'loan' and want $25,000 in penalties and fees, they are unable to produce any document with a signature and claim it has gone through a court hearing.

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[clearconscience]

Dang, I'm sorry man. And yes it's a financial instituion they have all the power in the US.
They can garnish wages, and probably reach a settlement to seize what you have.

I would keep fighting.
If it's a local branch take it to their door step.

I'm drowning in student loan debt and i didn't even grsduste.
I can't complain, i just bought and house and can pay the bills but it's $450 a mth a shell out for so e stupid choices as a kid. Thats what this country is. Drown you in debt make you a slave

 

[clearconscience]

And iphone suck for typing!!!!

 

[jluck]

If Bin Laden had outstanding student loans he would have been caught much sooner. ......

 

[jluck]

And iphone suck for typing!!!!

Not just typing. ...

 

[3MTA3]

You need a lawyer. Grants are loans that need to be paid back.

 

[locobob]

Sounds like BS to me, I doubt they can do anything more than harass you.

 

[rick benjamin]

"can they take money from you?"
Only if you let them in.
Don't provide any credit card number, bank account number, etc.
Don't agree to payments.
Don't admit to anything.

That 40 year old grant was sold to a collector.
If they can prove you received the grant (they send you a copy of the promissory note),
Or that there is a court judgement against you,
Ask them if $100 will make them go away forever.
If they say ok, demand it in writing, notarized.
Only when you have the agreement in hand, send them a bank check (not your personal check with account information).

If they don't produce any documents, ask them for their business contact information, so your lawyer can adress this issue in court.
Lawyer should be consulted no matter what.

 

[Will]

Buying old debt for pennies on the dollar is a growing industry. Most of the original debt holders wrote the money off years prior so getting a few bucks for the debt is easy money. The companies that buy the debt are aggressive and not only go after the original debt but all the interest and excessive legal fees.

If you are served with legal papers do not ignore them, if you do they will get a court judgment against you and attach your wages. Respond by certified mail stating you do not owe the debt. These companies are hoping for two results 1) you agree to pay or 2) you ignore them and they get a court judgment. I got something like this a few years back for an old credit card. The debt owed was $1,100 but with interest and fees it was now almost $9,000. I was certain I pad off the debt when I bought my home years earlier. I went to see a lawyer who gave me the above advice, I sent the company the letter and never heard from them again.

If they already have a judgment against you I would suggest seeking a lawyer, they might be able to get the amount of the judgment reduced by a lot more than what they will charge you.

Good luck.

 

[speeddemon94]

Uh, grants are free money and not required to be paid back. Loans have to be paid back. Unless something has changed massively in the last 40 years.

 

[mrblond]

check the statute of limitations on it. with 40 years it should be well over with

 

[Nick Burkhardt]

Student Loan Statutes of Limitations

 

[Benny503]

Dont you wish you were illegal resident? They are reievingbfree financial aids....

 

[timac]

If they can't provide any information of the loans validity send them this letter, fill in with your information. Send the letter registered of course.


[FONT=&amp]Date[/FONT]


[FONT=&amp]Your name [/FONT]
[FONT=&amp]address[/FONT]


[FONT=&amp]Creditor’s name[/FONT]
[FONT=&amp]Address[/FONT]




[FONT=&amp]Re: Acct #[/FONT]

[FONT=&amp]To Whom It May Concern: [/FONT]

[FONT=&amp]This letter is being sent to you in response to a notice sent to me on (DATE OF NOTICE). Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested. [/FONT]

[FONT=&amp]This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you. [/FONT]

[FONT=&amp]Please provide me with the following: [/FONT]


[FONT=&amp]What the money you say I owe is for; [/FONT]
[FONT=&amp]Explain and show me how you calculated what you say I owe; [/FONT]
[FONT=&amp]Provide me with copies of any papers that show I agreed to pay what you say I owe; [/FONT]
[FONT=&amp]Provide a verification or copy of any judgment if applicable; [/FONT]
[FONT=&amp]Identify the original creditor; [/FONT]
[FONT=&amp]Prove the Statute of Limitations has not expired on this account [/FONT]
[FONT=&amp]Show me that you are licensed to collect in my state [/FONT]
[FONT=&amp]Provide me with your license numbers and Registered Agent [/FONT]

[FONT=&amp]At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following: [/FONT]

[FONT=&amp]Violation of the Fair Credit Reporting Act [/FONT]
[FONT=&amp]Violation of the Fair Debt Collection Practices Act [/FONT]
[FONT=&amp]Defamation of Character [/FONT]
[FONT=&amp]If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist. [/FONT]

[FONT=&amp]Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is. [/FONT]

[FONT=&amp]If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately. [/FONT]

[FONT=&amp]I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS. [/FONT]

[FONT=&amp]It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.[/FONT]

[FONT=&amp]Best Regards,[/FONT]

 

[taylor]

Thank you very much for the suggestions I feel a lot better now. I'm going to contact them tomorrow and ask for info on the grant-loan validity and to see what they got and if they are unable to provide I'll go from there. Apparently there are differences between Federal and State(private) loans and I want to see what they are claiming.

 

[Nwcid]

Use the letter NOT phone. With phone there is no way to prove what they and you say. Second you might accidentally say something you think is harmless that is not. With the letter THEY have to PROVE you owe it in writing.

 

[Blue Devil PA]

That is a damn fine letter! I really like that it turns the burden of proof on the collection agency. Often times the collection agency will bluff, lie and bully you and your family. Actually, they are only as powerful as you make them. They know the game and use it against you. Good luck, I hope you make it so expensive and troublesome they will leave you alone.

 

[timac]

Use the letter NOT phone. With phone there is no way to prove what they and you say. Second you might accidentally say something you think is harmless that is not. With the letter THEY have to PROVE you owe it in writing.

Exactly, do not call them at all, use the letter.

 

[Will]

Agreed to respond in writing. Send it registered mail so you have proof that you responded. You might be able to respond via email if they gave you an email address, if they didn't don't look for one.

 

[timac]

That is a damn fine letter! I really like that it turns the burden of proof on the collection agency. Often times the collection agency will bluff, lie and bully you and your family. Actually, they are only as powerful as you make them. They know the game and use it against you. Good luck, I hope you make it so expensive and troublesome they will leave you alone.

Yes it does. If as much time has passed as the OP claims, I doubt they'll have any of the information, the letter requests for validation.