Members amp_surgeon Posted July 1, 2008 Members Share Posted July 1, 2008 The laws vary from state to state, so you'd need to check your local laws, but... Collection agencies usually aren't required to take payments. They aren't in the business of offering credit. They buy debts and collect on them. In most states, about the only thing they can do is threaten and harass, and ultimately (if they choose to) take you to court and get a judgement and order to pay. The courts don't usually do anything to enforce that order, but it will be impossible to get any credit while that order stands. Unless you intend to challenge the validity of the debt (and it sounds like you aren't), then don't even try to make a deal with the collection agency. Just find a way to pay it. Also, don't try to make arrangements with the original lender. They don't own the debt anymore - the collection agency does. Whether or not they have to serve you notice before sending a debt to collection would also be a matter for local law. Usually, the collection procedure is spelled out in the original loan agreement which you signed. Unless some part of that agreement was in conflict with local laws when it was signed, then the agreement is enforceable as written. If the agreement doesn't require them to contact you before going to collection, then they don't have to contact you. Often, the agreement will just specify that if you miss X number of payments then they have the option of sending it to collection. Your credit union is your best bet. They usually don't care about your credit rating. In fact, they usually won't even check your credit rating. You can usually sign a wage assignment agreement, and they'll take the payments directly from your paycheck. I don't know if they'll loan you that much money on your signature alone, though. That's a lot for an unsecured loan. Do you have anything to offer as collateral? Your credit union probably has a credit advisor. Make an appointment with them and get some professional advice. Link to comment Share on other sites More sharing options...
Members tonedover Posted July 1, 2008 Members Share Posted July 1, 2008 IF ITS A COLLECTION AGENCY, THEY BOUGHT THE DEBT FOR 12-24% OF THE DEBT YOU ORIGINALLY CHARGED OFF. OFFER THEM 30% OF THE ORIGINAL DEBT IN A LUMP SUM. I WOULD BE SURPRIZED IF THEY DONT TAKE IT I WORK FOR A MAJOR BANKING ORGANIZATION AND THEY NEGOTIATE DOWN THAT FAR BEFORE CHARGE OFF ALL THE TIME YOUR DEBT IS BOUGHT AND SOLD AT A FRACTION OF THE REAL #, DUE TO THE SMALL PERCENTAGES OF PEOPLE THAT ARE CAPABLE OF ENDING UP PAYING. IF THESE ARE SCHOOL LOANS RELATED TO THE GOVERNMENT AT ALL THERE IS A SMALL CHANCE YOU COULD BE SCREWED, BUT SINCE THEY ARE WILLING TO PLAY BALL SO FAR, NEGOTIATE THEM LOWER. Link to comment Share on other sites More sharing options...
Members RoboPimp Posted July 1, 2008 Members Share Posted July 1, 2008 IF ITS A COLLECTION AGENCY, THEY BOUGHT THE DEBT FOR 12-24% OF THE DEBT YOU ORIGINALLY CHARGED OFF. OFFER THEM 30% OF THE ORIGINAL DEBT IN A LUMP SUM. I WOULD BE SURPRIZED IF THEY DONT TAKE IT I WORK FOR A MAJOR BANKING ORGANIZATION AND THEY NEGOTIATE DOWN THAT FAR BEFORE CHARGE OFF ALL THE TIME YOUR DEBT IS BOUGHT AND SOLD AT A FRACTION OF THE REAL #, DUE TO THE SMALL PERCENTAGES OF PEOPLE THAT ARE CAPABLE OF ENDING UP PAYING. IF THESE ARE SCHOOL LOANS RELATED TO THE GOVERNMENT AT ALL THERE IS A SMALL CHANCE YOU COULD BE SCREWED, BUT SINCE THEY ARE WILLING TO PLAY BALL SO FAR, NEGOTIATE THEM LOWER. that's still almost a $9000 lump Link to comment Share on other sites More sharing options...
Members Silverburst LP Posted July 1, 2008 Members Share Posted July 1, 2008 Set up a payment plan. They'll tell you they need it right now to get you all worked up. The reality is--and they know it-- most average joes don't have 30 grand lying round. These places work with you; they just "attack" first to get your attention, and then become sort of human once you respond. Link to comment Share on other sites More sharing options...
Members HeartfeltDawn Posted July 1, 2008 Members Share Posted July 1, 2008 Man, that sucks. I really feel for you. I'm lucky that my parents paid for school, but we're still paying off my wife's student loans. I'd hate to get hit with something like that.Unless you have a really high-paying job, I don't know how you can raise $26K immediately. I can think of a few ways but most of them involve lubrication. 'Handjobs for loose change' doesn't even begin to cover it. On a serious note, that's very harsh. If the original company did sell the debts onto a collection agency, I am sure in this country that the original company would have to write to you in person to let you know of a change in the arrangements. The collection company would then have to write to you in order to set out the terms of any repayments to be made, your rights and their rights to try to get your cash. I would therefore first hit on the original company for details of when and how they tried to contact you and at what dates. You have every right to demand the correspondance either/both companies have allegedly sent to you, if indeed they have done. Don't get down about all of this. My former mother in law got hit with over $100,000 in taxes and state charges when her husband died. She got out of it all somehow, filed for bankruptcy three years ago, and has bought two apartments since by being canny and seeking excellent legal and financial advice. Link to comment Share on other sites More sharing options...
Members grayeyes777 Posted July 1, 2008 Members Share Posted July 1, 2008 a lot of credit card companies are offering zero percent balance transfers now. that could buy you some time. Link to comment Share on other sites More sharing options...
Members justinhedrick Posted July 1, 2008 Members Share Posted July 1, 2008 If the original company did sell the debts onto a collection agency, I am sure in this country that the original company would have to write to you in person to let you know of a change in the arrangements. that isn't true. once a debt is sold, the original company could care less what happened to it. you can, however, contest the debt with the collection agency. It may work, it may not. good luck. Link to comment Share on other sites More sharing options...
Members Flying_Milkman Posted July 1, 2008 Members Share Posted July 1, 2008 that isn't true. once a debt is sold, the original company could care less what happened to it. you can, however, contest the debt with the collection agency. It may work, it may not. good luck. However the have to notify you of their intention to sell the debt to a collections agency. Link to comment Share on other sites More sharing options...
Members chakosh Posted July 1, 2008 Members Share Posted July 1, 2008 I have a friend that works for a collection agency. They don't have payment plans... I think a credit union is going to be your best bet. Sorry to hear about your turn of luck man... Best of luck. Link to comment Share on other sites More sharing options...
Members fly135 Posted July 1, 2008 Members Share Posted July 1, 2008 Don't forget. Whatever deal you get the debt down to, the collection agency will send you submit a 1099 to the IRS for the forgiven debt. Then you will have to pay taxes on that amount for that year as earnings. Most student loans aren't subject to forgiveness through bankruptcy. That makes me think this isn't a regular student loan. Maybe you can let it lie for 7 years and if they don't sue it will go away. Link to comment Share on other sites More sharing options...
Members hangwire Posted July 1, 2008 Author Members Share Posted July 1, 2008 Don't forget. Whatever deal you get the debt down to, the collection agency will send you submit a 1099 to the IRS for the forgiven debt. Then you will have to pay taxes on that amount for that year as earnings. Most student loans aren't subject to forgiveness through bankruptcy. That makes me think this isn't a regular student loan. Maybe you can let it lie for 7 years and if they don't sue it will go away.and if they sue, then what, ruined credit and legal file Link to comment Share on other sites More sharing options...
Members HeartfeltDawn Posted July 1, 2008 Members Share Posted July 1, 2008 that isn't true. once a debt is sold, the original company could care less what happened to it. you can, however, contest the debt with the collection agency. It may work, it may not. good luck. Not true. A company who sells on a debt with a customer to another company is essentially tearing up the contract between them and the client. They have to give the client a reasonable amount of time to make alternative arrangements ie. possibly taking the debt back on and agreeing something with another loan company to pay it off. If the company sells on the debt to company 2, then company 2 takes on the debt and agrees terms with the client. The client may have decided company 2's terms are {censored} and found someone else. As someone else said, company 1 has to inform you of their intention to sell your debt to someone else. Link to comment Share on other sites More sharing options...
Members HeartfeltDawn Posted July 1, 2008 Members Share Posted July 1, 2008 and if they sue, then what, ruined credit and legal file First, get all the paperwork from the time when everythign was consolidated four years ago. Grab as much as possible and see if you can figure out why that loan wasn't included in the consolidation. See if it's your error or a loan company error ie. they agreed to it, put it in writing, you signed it but they never mechanically did it. I spent time earlier this year sorting out a friend's accounts after her husband left and filed for divorce (it was a joint account: they agreed to close it off and go to seperate accounts but the bank closed her out and didn't close him out. He cranked up debt and left it in her name. With my help, she was able to prove that the bank messed up. End result: debts of over Link to comment Share on other sites More sharing options...
Members freetime Posted July 1, 2008 Members Share Posted July 1, 2008 $26 grand lump sum? I'd tell them to eat a dick Link to comment Share on other sites More sharing options...
Members HeartfeltDawn Posted July 1, 2008 Members Share Posted July 1, 2008 $26 grand lump sum? I'd tell them to eat a dick That dick would be subject to a daily interest rate of 2% though. Link to comment Share on other sites More sharing options...
Members hecticone Posted July 1, 2008 Members Share Posted July 1, 2008 Sounds to me like they sold that loan to a nother lender thats why you haven't been notified. Big mistake but it happens. I would schedule a sitdown with the original lender and see what you can work out.No company wants to loose their money. Good luck. Link to comment Share on other sites More sharing options...
Members Holey Lint Trap Posted July 1, 2008 Members Share Posted July 1, 2008 Sounds to me like they sold that loan to a nother lender thats why you haven't been notified. Big mistake but it happens. I would schedule a sitdown with the original lender and see what you can work out.No company wants to loose their money. Good luck. The oringal lender is out of the picture. They have washed their hands of it by selling it to collections. Link to comment Share on other sites More sharing options...
Members St. Andrew Posted July 1, 2008 Members Share Posted July 1, 2008 you didn't know you had student loans. you didn't know you owed $37k? Link to comment Share on other sites More sharing options...
Members satannica Posted July 1, 2008 Members Share Posted July 1, 2008 Have a google around... there's plenty of credit advice organistations that can advise you better. In my experience, making them a token offer can work. Its a lot to raise, but then so is $26 grand. Sorry to hear man, its {censored}ed up. It could be like the UK. We all have student loans out the wazoo that nobody has a {censored}ing hope of paying since all the jobs we're trained for are now either heavily exported or cripplingly underpaid! Instead they'll garnish state pensions or assets (such as property) to settle the debts - plus 40 years of interest! UK Government FTW!!! Link to comment Share on other sites More sharing options...
Members MathiasWilliam Posted July 1, 2008 Members Share Posted July 1, 2008 thats gotta sting, sorry man that {censored}en sucks Link to comment Share on other sites More sharing options...
Members Flying_Milkman Posted July 1, 2008 Members Share Posted July 1, 2008 The oringal lender is out of the picture. They have washed their hands of it by selling it to collections. It is illegal to sell it to a collections agency without informing the debtor. Link to comment Share on other sites More sharing options...
Members hecticone Posted July 1, 2008 Members Share Posted July 1, 2008 Due notice has to be given. Sue them back get a good lawyer and let the {censored} fly. Link to comment Share on other sites More sharing options...
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