Oooooh...LynnInMinn.......

[katwoman]

I've bugged you about this before and you've been great with the responses. Soooo, here we go again.......

I've got an UNPAID tuition balance (state school in IL). It is now with the IL Comptroller who will (and has) seize any IL tax refund due to me. Now, I'd like to finally get this behind me but there is something that is bugging me: the university had assessed a 1.5% fee every month this balance went unpaid. I recall having read in the newspapers that the state considered this illegal and the practise was stopped. The amount they claim I owe is inclusive of this compounded monthly fee.

How do I dispute this debt? Do I have any consumer rights I can use? Keep in mind this was NEVER on any credit report. It was sent to a few collectors but ultimately it got to the comptroller.

I do have a letter from the university accounts receivable office saying that I can speak to them if I have a issue with the validity of the debt. The same kind of verbiage that CA's usually give debtors which is why my suspicions were raised.

How should I handle this? Do you ever recall this practise of 1.5% late fee added to student unpaid balances?

[LynnInMN]

I dont know what school you went to but I pulled up Loyola university and they have the charge. I know my school charged the same late fee...it was written into the schools policy manual and student handbook. If this is illegal in IL, try to find the law or article.

Disputing the debt...can you still access your student account?? You should be able to see a detailed balance and accounting on there. Or call the schools accounting department and have them send you a copy.

[katwoman]

Thanks for the reply.

Loyola can probably get away with this since it's a private school. I went to a public one (state U) and it became illegal for the state schools to charge the 1.5% per month.

Looks like I'll have to go searching for the law.