CA Recommends I Commit Fraud

[tropicaljo]

I began posting this issue on the student loan forum, and if anyone is interested they can check out the whole thread at

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=26806

The reason I've come here this morning is that I need some advice pretty quick and the answers are pretty slow coming over on the other forum. Essentially, a CA has recommended that I lie on a Sallie Mae loan application in order to get a "consolidation" loan to bring my defaulted student loan (16+ yrs) into a current status. He told me that once I do what he says, then I can defer the payments due to my financial and health issues. The original validation letter which I answered within the legal timeline stated that the balance is over $12,000.00, but now, a week after they recieved my letter, the amount this guy is demanding is over $20,000. He says that they extra charges are late fees and collection costs, but refuses to give me any kind of breakdown on these charges, or to provide me with a copy of my contract. He said it would be a waste of time for me to call the univ I went to, but I called them anyway. According to them the late fees and collection charges should be more like about $3500.00.

Sallie Mae says that I wouldn't qualify for a consolidation loan with them because I only have one loan outstanding and because that loan is in default status. They also said that getting the deferrment status isn't as easy as this guy implied and they were appalled with what this guy had told me to do. They were also appalled that this guy had told me to lie on their online application.

So, can someone here tell me what I should about this CA? I expect this guy to be calling me sometime this morning wanting to know why I haven't called him back with the news that I complied to his instructions...

[tropicaljo]

Oh, and the Sallie Mae folks and the folks at the univ I attended said that it would indeed be fradulent for me to have lied on that application and that it would be fradulent for me to apply for a loan that I had no means of honoring.

[anti-something]

can you record the phone call in any way???

if you can, get the guy to repeat what he told you to do, ask leading questions, like 'can I get into trouble for this? isnt that lying?'

[Guest]

You can NOT get out of paying a student loan. There is no SOL on them and they will take your taxes and SSI or disability payments to pay for the loan.

It is legal for the gov't to take money from you to pay back those loans.

Now you CAN consolidate a defaulted loan through Direct Loans. They will pay off the loan and you can select an income contngent repayment plan.

You can find Direct Loans on the web and can also apply online.. it only took like 6 weeks for them to take care of my loan.

They will let you repay with a much lower interest rate over a longer period of time if you have a low income.

I did the exact same thing and it is all worked out now.

Dont do what the CA is telling you to do and DEMAND validation from them. They are required by Federal law to send it to you.

And trust me.. the Dept of Ed will have EVERYTHING on it and have it within easy access

Send them a LIMITED C&D that you will only talk to them in writing. Also call the dept of

educations 1-800 number and tell them everything you have told us here about them telling you to commit fraud.

When I told them that the CA was debiting my account and I refused to work with that CA.. they called the debt back to the Dept of Ed and I got to work directly with them.

THEY are the ones who turned me on to Direct Loans who I finally got my loan rehabbed through.

All my student loans are perfect and show on my credit as such.

Hope that helps you some.

[codename_fortyseven]

OMG, there aren't enough phone recorders in the world. AK is a one party state, so I'd head on over to the local spy shack and pick one up and LOTS of tapes. I definately would lead him into going over the scenario

"So that thing you suggested I do with Sallie Mae, how do I do that again?"

"OK, and you are sure this is legal and I won't get in trouble"

"Ok, so you want to fudge the application a little bit...ok"

I wouldn't directly dive into it, but I'd talk about the loan, what options I have, how to bring it current, then start setting this dude up. Talk around the issue, touch on it briefly, then talk around it some more, then touch on it again and you should be good.

Then I'd forward a copy of the tape to my local elected official, local media outlets, state atty gen, and waste, fraud, abuse hotline.

I'd get the sallie mae folks on record saying that said actions are illegal too.

[tropicaljo]

antisomething said:

can you record the phone call in any way???

Don't currently have a recording device, but hubby was on the other line and altho he kept his mouth shut, he heard every word . Also however, I didn't tell the guy hubby was on the line.

skywarner said:

You can NOT get out of paying a student loan. There is no SOL on them and they will take your taxes and SSI or disability payments to pay for the loan.

I already know all of that, but as I said on the other thread refrenced in my first post on this thread, I have been unable to work for a long time because of my health, the IRS has already put liens against everything we own and anything we might hope to own AND imposed payments with every expendable dollar they could find in our budget for the next ten years, so garnishments and liens are not really a pressing issue. Also, the IRS does not allow that payments on an old student loan are necessary for making an income, so they won't reduce the amount of our payments in order to pay anything on my defaulted student loan. You also suggested a limited C & D... did that when I answered their validation letter, quote... "So, I am sorry to say that I have no money to pledge towards a monthly payment on debts that are decades old. Today I’m just happy to still have a roof over my head and enough food for dinner. IF there ever comes a day that my situation should improve, I will contact Arkansas Tech University, not you. I made the debt with them, and I will deal only with them. Please don’t waste your time or mine with further communication on this issue."

I also disputed the amount of the debt at the very beginning of my response letter, but when I asked this CA on the phone for some kind of documentation showing a breakdown of the charges, he blew me off.

codename_fortyseven... Arkansas abbreviation is AR... .

At the moment, I am composing a complaint to (edited), concerning what their agent has tried to get me to do. I will probably send copies of this letter to the Dept. of Ed, the Atty's Gen, in both Arkansas and New Hampshire, and the BBB. The thing is, this guy tried to take advantage of my supposed ignorance, and I think he should have to pay (me for one) for it. I think there are some violations here that could be enforced, possibly 807(7) & (10), 808(1), and 809(5)(, for starters... anyone disagree or have other opinions?

[codename_fortyseven]

I'd get it on record, as it is just so much more damning.

[Guest]

Direct loans will look at your income.. and your expenses as shown on your tax record. They are a govt entity.

They will see that you have no expendable income and you will get a repayment of 0.

Or you can ask for 3 years of defferment in hopes that things will improve.

I was not telling you that you would have to pay only that your amount if any would be extremely low AND that it will cure the default.

Dont listen to the CA.. they are boobs.

Check into consolidating the loan.

If you owe money to the University itsself.. then that is entirely different.

Check into which applies to you

[Guest]

Direct loans will look at your income.. and your expenses as shown on your tax record. They are a govt entity.

They will see that you have no expendable income and you will get a repayment of 0.

Or you can ask for 3 years of defferment in hopes that things will improve.

I was not telling you that you would have to pay only that your amount if any would be extremely low AND that it will cure the default.

Dont listen to the CA.. they are boobs.

Check into consolidating the loan.

If you owe money to the University itsself.. then that is entirely different.

Check into which applies to you

[Methuss]

Am I reading this correctly? The CA is encouraging you to commit fraud so that you can pay them?

If that's what is happening, that would be using deceptive means to collect a debt...a violation of the FDCPA. It's deceptive because they are trying to convince you that it's OK to do this fraud, in order to obtain funds that would ultimately be sent to them. An unsophisticated consumer might be persuaded into this illegal action...you had the wherewithal to actually check into it to see if what they were suggesting was legal. A gullible person might have not thought it through as thoroughly.

[Methuss]

Am I reading this correctly? The CA is encouraging you to commit fraud so that you can pay them?

If that's what is happening, that would be using deceptive means to collect a debt...a violation of the FDCPA. It's deceptive because they are trying to convince you that it's OK to do this fraud, in order to obtain funds that would ultimately be sent to them. An unsophisticated consumer might be persuaded into this illegal action...you had the wherewithal to actually check into it to see if what they were suggesting was legal. A gullible person might have not thought it through as thoroughly.

[Chancy949]

I went with Direct Loans when I defaulted (from living over seas) my DH had a loan too. He was the only one working at that time, so it went into his name. its funny 14,000 in student loans and only 1,500 are his.

I think the CA is full of it. Because its not actually ONE loan, it should be a bunch of little loans. Each semester for me, was considered ONE loan.

The CA was PISSED when we consolidated with Direct Loans. ( I thin it was salley mae) DH's was different. Direct Loans, These people are great. We were even late one month and they took the late off of our report.

Good luck.

[Chancy949]

I went with Direct Loans when I defaulted (from living over seas) my DH had a loan too. He was the only one working at that time, so it went into his name. its funny 14,000 in student loans and only 1,500 are his.

I think the CA is full of it. Because its not actually ONE loan, it should be a bunch of little loans. Each semester for me, was considered ONE loan.

The CA was PISSED when we consolidated with Direct Loans. ( I thin it was salley mae) DH's was different. Direct Loans, These people are great. We were even late one month and they took the late off of our report.

Good luck.

[Chancy949]

OH and one more thing, does anyone know how to get a fixed rate with them? ours is variable. Looks like our rate could go up in July.

[Chancy949]

OH and one more thing, does anyone know how to get a fixed rate with them? ours is variable. Looks like our rate could go up in July.

[tropicaljo]

skywarner, I appreciate the advice and will be looking into this option. Do you have any kind of contact info for Direct Loans, or can you tell me who I need to contact? Your experience gives me hope that there is a way to work this out. And since I have all the documents involving our problems with the IRS, showing thta there is no expendable income is not a problem.

And Methuss I am honored by your input... Yes indeed you read correctly. I took copious notes during 3 separate phone conversations with this guy, and hubby listened to this guy the other night trying to steamroll me into filing this application night before last, assuring me all the while that if I just listened to him that everything would work out ok for me. And after all I've learned here, I was semi prepared for the what a debt collector might try to pull in order to clear his books, and after all the threats the IRS made concerning what would happen if they caught me in a lie, well, I knew that lying on that gov't loan app would cause me nothing but hardship.

So, I took some money out of the grocery money and went and bought what I need to record this guy when he calls me back to find out if I followed his instructions. If AR. Tech doesn't contact his office before he calls me back (spurred my phone conversation with their financial aid rep yesterday about all this), then I'm gonna tell him that I misplaced my notes concerning what he wanted me to do and I'll ask him to walk me thru the online application process again. And by the way, codename_fortyseven said that AR is a one party state... can someone confirm this please? Thanks everybody!

[tropicaljo]

skywarner, I appreciate the advice and will be looking into this option. Do you have any kind of contact info for Direct Loans, or can you tell me who I need to contact? Your experience gives me hope that there is a way to work this out. And since I have all the documents involving our problems with the IRS, showing thta there is no expendable income is not a problem.

And Methuss I am honored by your input... Yes indeed you read correctly. I took copious notes during 3 separate phone conversations with this guy, and hubby listened to this guy the other night trying to steamroll me into filing this application night before last, assuring me all the while that if I just listened to him that everything would work out ok for me. And after all I've learned here, I was semi prepared for the what a debt collector might try to pull in order to clear his books, and after all the threats the IRS made concerning what would happen if they caught me in a lie, well, I knew that lying on that gov't loan app would cause me nothing but hardship.

So, I took some money out of the grocery money and went and bought what I need to record this guy when he calls me back to find out if I followed his instructions. If AR. Tech doesn't contact his office before he calls me back (spurred my phone conversation with their financial aid rep yesterday about all this), then I'm gonna tell him that I misplaced my notes concerning what he wanted me to do and I'll ask him to walk me thru the online application process again. And by the way, codename_fortyseven said that AR is a one party state... can someone confirm this please? Thanks everybody!

[Chancy949]

http://www.dl.ed.gov/

That is the OFFICIAL site.

If you google Direct loans, you get others that will be the middle man.

[Chancy949]

http://www.dl.ed.gov/

That is the OFFICIAL site.

If you google Direct loans, you get others that will be the middle man.

[KentWA]

Yep, One Party state - http://www.callcorder.com/phone-recording-law-america.htm

[KentWA]

Yep, One Party state - http://www.callcorder.com/phone-recording-law-america.htm

[tropicaljo]

Thanks chancy! And I checked out your thread on phone recordings codename_fortyseven...very interesting...however, unlike AR, NH is a two party state, so this may be tricky.

[tropicaljo]

Thanks chancy! And I checked out your thread on phone recordings codename_fortyseven...very interesting...however, unlike AR, NH is a two party state, so this may be tricky.

[anti-something]

ask the guy if he is recording the call. If he says yes, you are set, if he says no, then you say I am sure it is being recorded, shall we continue anyway?

[anti-something]

ask the guy if he is recording the call. If he says yes, you are set, if he says no, then you say I am sure it is being recorded, shall we continue anyway?