How do we handle this situation

[tryingtodigout]

My DH has some student loans currently in default. We initially tried to consolidate using Direct Loans. DL sent us a letter stating that we could consolidate but it would not erase the negative history from his credit file. The status of his loans is currently "claim filed with government" Basically they are taking his taxes as payment because they could not find him to make payments on it. So DL suggest maybe he should consider the rehabilitation route. That would bring him current in 12 months instead and erase the default from his CR. So we contacted the CA and told them that we wanted to rehabilitate the loans instead. They gave us the dollar amount to pay each month, the amount currently owed and how long the rehab period is.

Now since we contacted this agency the guy has been calling here twice a day every day leaving messages on this. He said that they needed a checking account to directly deduct the payments from, we could not send the payments directly. So I suggest to my DH that he ask for a letter outlining the terms of the agreement from the phone call. Now the CA guy says that in order to get the terms in writing he must make the first payment and then they would send the letter. I don't see how that could be. I think that the CA is up to something here.

Can someone please give us some urgent advice. This guys is calling us off the hook now that they know where he is and how to contact him. I feel terrible telling my DH to go the consolidation route because now we are getting harrassed by this CA scum. At least when they could not find him there were no letters or phone calls.

Thanks in advance.

[Radio_Guy]

First off,

Have you DV'd them? If not do so and it will buy you 30 days of quite to figure this out.

See the DV thread at above.

[tryingtodigout]

First off,

Have you DV'd them? If not do so and it will buy you 30 days of quiteto figure this out.

See the DV thread at above.

I did not know you could do the normal DV process for student loan debt. We have to money to do the payments they are asking. Its just that I think its strange that they want us to send the first payment before they send a letter outlining the terms of the agreement. It makes me think they are up to something.

Does anyone else find that strange.

[GreatGadsby]

I find it strange, tell them you'll be happy to send the payent the same time they send you the terms. they can fax them and get their check sent on the same day. I would also not give them bank acct info if possible. i would pay with money orders. unscrupulous persons have been known to continue removing $ after their authorization to has been revoked, or to withdraw more than the agreed upon amount, causing other checks and whatnot to bounce.

that would be like paying your first car payment without any loan papers. it's just wrong, I wouldn't do it. try to get in writing (or a recording?) that they wont send you the terms of any agreement until you send them money, then report them to the AG. maybe a claim for deceptive and unfair trade practices and harrasment?

was it a federal student loan?

[tryingtodigout]

I find it strange, tell them you'll be happy to send the payent the same time they send you the terms. they can fax them and get their check sent on the same day. I would also not give them bank acct info if possible. i would pay with money orders. unscrupulous persons have been known to continue removing $ after their authorization to has been revoked, or to withdraw more than the agreed upon amount, causing other checks and whatnot to bounce.

that would be like paying your first car payment without any loan papers. it's just wrong, I wouldn't do it. try to get in writing (or a recording?) that they wont send you the terms of any agreement until you send them money, then report them to the AG. maybe a claim for deceptive and unfair trade practices and harrasment?

was it a federal student loan?

It is for federal student loans. I find it really strange also that they will not let us mail payments. My DH tried everything to mail payments but they CA scum keeps saying they can only accept the first payment by mail and every other payment after that needs to be directly taken out of a bank account. I don't see the necessity for that at all. They should be able to accept payments by mail.

Also no matter what was said, they want DH to send the first payment before they send that letter. This all sounds really fishy to me and I don't know what other route to take. I think trying to tape them now would be kind of hard. Its the second time DH discussed the terms with them so to try to get them to say it again they would definitely think something is up. Not to mention they are calling now every day twice a day. What is the big deal to send him a letter. They just got a payment a couple months ago because they got his taxes. So its not like they get no money at all.

[GreatGadsby]

they're not allowed to harrass you. can you get phone records to prove when they've been calling and how often? or take pictures of your caller ID display? it is a CA and not the government calling you right? so they are bound by the FCRA, the FDCPA, and any applicable state laws. I'll look 4 the section on harrasment in just a minute.

[GreatGadsby]

From the FDCPA:

§ 805. Communication in connection with debt collection [15 USC 1692c]

(a) COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt --

(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antimeridian and before 9 o'clock postmeridian, local time at the consumer's location;

(2) if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or

(3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication.

( COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.

© CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete upon receipt.

(d) For the purpose of this section, the term "consumer" includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator.

§ 806. Harassment or abuse [15 USC 1692d]

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.

(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.

(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act.

(4) The advertisement for sale of any debt to coerce payment of the debt.

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

(6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller's identity.

[tryingtodigout]

I think its a CA calling. Its not Sallie Mae calling although they are on his reports now. But its showing that they transferred the debt to these scums that are calling now.

GreatGadsby: Thanks for sending me that FDCPA info. I will see if there is anything that my DH can use to apply to his situation. I told my DH to send them a limited cease and dissist letter to stop them from calling now. I just really regret I trying to get him to consolidate. I feel like we opened a BIG can of worms. It was definitely better than when they had no clue where he was.

I still don't know what to do about the terms of the agreement and getting them to put that in writing.

Any further advice would be appreciated.

[LynnInMN]

Now since we contacted this agency the guy has been calling here twice a day every day leaving messages on this.

Is he just calling or is he leaving a message both times?? Calling without leaving a message is not against the FDCPA but two contacts via an answering machine would be a violation.

He said that they needed a checking account to directly deduct the payments from, we could not send the payments directly.

This is a crock!!He is just trying to build up his post dated check bank!! You do not have to send checks or give a checking account number to qualify.

So I suggest to my DH that he ask for a letter outlining the terms of the agreement from the phone call. Now the CA guy says that in order to get the terms in writing he must make the first payment and then they would send the letter. I don't see how that could be. I think that the CA is up to something here.

You dont need terms in writing....they are written into federal law..the Higher Education ACT. Most CA's dont send anything out.

Can someone please give us some urgent advice. This guys is calling us off the hook now that they know where he is and how to contact him. I feel terrible telling my DH to go the consolidation route because now we are getting harrassed by this CA scum. At least when they could not find him there were no letters or phone calls.

Thanks in advance.

He can send in his monthly payments and the will qualify for rehab. The best thing to say is "I dont have a checking account and cant get one."There is nothing written in law stating that he MUST be on a pre authorized debit. If the calling continues, call the CA and ask for a qualified manager and complain.

[tryingtodigout]

Now since we contacted this agency the guy has been calling here twice a day every day leaving messages on this.

Is he just calling or is he leaving a message both times?? Calling without leaving a message is not against the FDCPA but two contacts via an answering machine would be a violation.

He said that they needed a checking account to directly deduct the payments from, we could not send the payments directly.

This is a crock!!He is just trying to build up his post dated check bank!! You do not have to send checks or give a checking account number to qualify.

So I suggest to my DH that he ask for a letter outlining the terms of the agreement from the phone call. Now the CA guy says that in order to get the terms in writing he must make the first payment and then they would send the letter. I don't see how that could be. I think that the CA is up to something here.

You dont need terms in writing....they are written into federal law..the Higher Education ACT. Most CA's dont send anything out.

Can someone please give us some urgent advice. This guys is calling us off the hook now that they know where he is and how to contact him. I feel terrible telling my DH to go the consolidation route because now we are getting harrassed by this CA scum. At least when they could not find him there were no letters or phone calls.

Thanks in advance.

He can send in his monthly payments and the will qualify for rehab. The best thing to say is "I dont have a checking account and cant get one."There is nothing written in law stating that he MUST be on a pre authorized debit. If the calling continues, call the CA and ask for a qualified manager and complain.

Thank you LynnInMN for responding.

Is he just calling or is he leaving a message both times?? Calling without leaving a message is not against the FDCPA but two contacts via an answering machine would be a violation.

The CA scum has been very sneaky in how he does it. He would call a couple times a day leave maybe one message. Sometimes he does not.

This is a crock!!He is just trying to build up his post dated check bank!! You do not have to send checks or give a checking account number to qualify.

He is telling us that there is "no other way to pay this account other than the direct debit from the account" CA would only accept the first payment by money order and every other payment has to be by direct debit.

You dont need terms in writing....they are written into federal law..the Higher Education ACT. Most CA's dont send anything out.

How do we find this act. And how would we know they are really applying our payments to rehab and not just to the loan as a whole. And how would we know that they would only deduct the agreed payment. Is there something they are supposed to send out to us to sign authorizing a certain amount to be deducted as payment.

Thank you for your response.

[LynnInMN]

This is actually from the Deptarment of Ed site....

http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

Loan Rehabilitation

You may also be interested in participating in the loan rehabilitation program. After you have made 12 consecutive monthly payments that are both reasonable and affordable, we will agree to reinsure the loan. You will then be eligible to have the loan purchased by a lending institution. Once a loan is rehabilitated, it will be taken out of default, the credit bureau reports made by the servicing agency will be deleted, you will be able to repay the loan over a 9 year period, and you will again be eligible for additional Title IV student financial aid funds.

Please call us 1-800-621-3115 for additional information on the loan rehabilitation program.

And how would we know they are really applying our payments to rehab and not just to the loan as a whole. And how would we know that they would only deduct the agreed payment. Is there something they are supposed to send out to us to sign authorizing a certain amount to be deducted as payment.

Payments are not applied to the rehab per se. It is just 12 on time monthly payments. As for automated payments, each agency is different. Our agency did not send any letter out to set up a pre authorized debit. We simply set it up over the phone. However monthly per the FDCPA, we did send out the intent to deposit notification.

[tryingtodigout]

This is actually from the Deptarment of Ed site....

http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

Loan Rehabilitation

You may also be interested in participating in the loan rehabilitation program. After you have made 12 consecutive monthly payments that are both reasonable and affordable, we will agree to reinsure the loan. You will then be eligible to have the loan purchased by a lending institution. Once a loan is rehabilitated, it will be taken out of default, the credit bureau reports made by the servicing agency will be deleted, you will be able to repay the loan over a 9 year period, and you will again be eligible for additional Title IV student financial aid funds.

Please call us 1-800-621-3115 for additional information on the loan rehabilitation program.

And how would we know they are really applying our payments to rehab and not just to the loan as a whole. And how would we know that they would only deduct the agreed payment. Is there something they are supposed to send out to us to sign authorizing a certain amount to be deducted as payment.

Payments are not applied to the rehab per se. It is just 12 on time monthly payments. As for automated payments, each agency is different. Our agency did not send any letter out to set up a pre authorized debit. We simply set it up over the phone. However monthly per the FDCPA, we did send out the intent to deposit notification.

Thank you for this info. I will make sure I check out the link you sent me. We already asked Direct Loans if we could rehab through them and they said we had to use who currently had the loans. If we still wanted to consolidate that the negative info would remain on his CR and we would have collection fees. The CA my DH is dealing with just told him to give them his account info over the phone to set up the rehab payments. I just also found out that when my DH told the CA scum he did not want to get burned again by another CA the scum replied "if I wanted to burn you, I would make your payments more than what they are" Of course we have no recording of him saying that to my DH. I can't imagine the CA scum would be allowed to say the things that he did over the phone. That is why I was pushing for an agreement in writing. I will still try to get around the whole direct debt thing. I did not think that was required for the rehab but the CA scum is trying to say it is mandatory.

[GreatGadsby]

tell them you don't have a checking account.... since I'm on checksystems list and/or b/c of my credit, I can't get one. I'm stuck using a bank that's 6 hours away from where I live now.... I have to mail in my paychecks b/c my stupid job doesn't do direct deposit. tell them your credit is too bad, partly due to this student loan of course to get a checking account. maybe ask if they'll take a visa/mc and go buy a visa/mc gift card and give them those numbers ? then they can only take so much..... but I don't know if you would get any kind of statement with those to say how much they took when...

[tryingtodigout]

I was thinking of telling them that due Chex he could not get an account. We tried so many other things to buy time but that is the one we did not try. All I wanted them to do is give us a date, the amount, and the address to mail payments. Then we would do so monthly.

Here is my thinking as to why they are playing hardball with DH. The loan was transferred from the OC to someone else and they filed a claim with the govt a while back to attach his taxes. Then this scum CA somehow guaranteed the loans and bought it from the previous lender. They have spent the last couple of years trying to find him. Nothing has apparently worked till now. The only reason they know where he is, is because of his attempt to consolidate the defaulted loan. Then when Direct Loan wrote and suggested the rehab, he called the CA and told them he would rather rehab and would stop the consolidation. From that point on, they have been calling two to three times a day to find out about the payment. They must feel that by having the direct debit that if they cannot locate him by phone or mail again, they would just freeze the account and take the funds. At this point, DH has no reason to stop paying unless it was hardship. I told him that he cannot have them attach his taxes forever because at some point he will probably get sued. I would not be surprised if they tried that already but he does not live in the same state that they originated the loans. So they may not have known exactly where to file their suit.

And now we cannot get these morons to go away. I just basically want to be able to mail payments and have them stop calling. As soon as rehab is over, we plan to consolidate the loans anyhow and it definitely would not be threw these scums.

[LynnInMN]

Here is my thinking as to why they are playing hardball with DH. The loan was transferred from the OC to someone else and they filed a claim with the govt a while back to attach his taxes.

When a student loans defaults, the lender files a claim against the guarantor. Tax offsets are standard with all defaulted student loans.

Then this scum CA somehow guaranteed the loans and bought it from the previous lender.

Nope. CA's never own or buy federally insured student loans. They work for the loan guarantey agency.

They have spent the last couple of years trying to find him. Nothing has apparently worked till now. The only reason they know where he is, is because of his attempt to consolidate the defaulted loan. Then when Direct Loan wrote and suggested the rehab, he called the CA and told them he would rather rehab and would stop the consolidation.

This too is standard. Anytime the DOE gets new location information on a defaulted debtor, the forward it to the CA.

From that point on, they have been calling two to three times a day to find out about the payment.

It is probably the dialer calling. When I was collecting, unless we had a secured payment or a promise to pay within 5 days, the dialer would keep dialing it. Pretty standard. Once a payment was posted to the account, we didnt have to call it again until it was 5 days late.

They must feel that by having the direct debit that if they cannot locate him by phone or mail again, they would just freeze the account and take the funds.

They cannot freeze an account.

At this point, DH has no reason to stop paying unless it was hardship. I told him that he cannot have them attach his taxes forever because at some point he will probably get sued. I would not be surprised if they tried that already but he does not live in the same state that they originated the loans.

Due to the federal insurance on the account, origination of the loan really doesnt matter. They would simply hire an attorney in your county.

So they may not have known exactly where to file their suit.

They can find you. If they decide to follow suit, they simply get the info from the IRS.

And now we cannot get these morons to go away. I just basically want to be able to mail payments and have them stop calling. As soon as rehab is over, we plan to consolidate the loans anyhow and it definitely would not be threw these scums.

When is your payment due?? Mail one in ASAP. The calls should stop.

[tryingtodigout]

We don't have a due date per se. All I know is that DH and the CA scum had a conversation about him mailing the first payment. Then he has to give up the checking acct info from then on for auto debit payments. I guess he is going to mail his first payment and send along a letter regarding the promise the CA made to outline the terms of the agreement.

I am confused about one thing though. At some point, Sallie Mae bought these loans and then transferred or sold them to someone else. If DH rehabs these loans will the Sallie Mae info also disappear. The CA scum said that there should be no negative Sallie Mae info on his report since they got paid already. But currently Sallie Mae shows lates, status: claim filed with govt and transferred/sold to another lender. What is the likelihood that the CA scum is telling the truth about the Sallie Mae derog disappearing after rehab. Is there any way for us to be able to dispute this with the CRA.

[LynnInMN]

We don't have a due date per se. All I know is that DH and the CA scum had a conversation about him mailing the first payment. Then he has to give up the checking acct info from then on for auto debit payments. I guess he is going to mail his first payment and send along a letter regarding the promise the CA made to outline the terms of the agreement.

I am confused about one thing though. At some point, Sallie Mae bought these loans and then transferred or sold them to someone else.

Sallie Mae is a loan servicer. Loans are frequently purchased by Sallie Mae. They would also be your defaulting lender. When your dh defaulted, they file a claim against the guaranty agency.

If DH rehabs these loans will the Sallie Mae info also disappear.

Incorrect. There is no legal obligation for the servicer to change their tradelines, only the guaranty agency.

The CA scum said that there should be no negative Sallie Mae info on his report since they got paid already. But currently Sallie Mae shows lates, status: claim filed with govt and transferred/sold to another lender. What is the likelihood that the CA scum is telling the truth about the Sallie Mae derog disappearing after rehab. Is there any way for us to be able to dispute this with the CRA.

Nope...this is standard student loan reporting.

Who actually owns these loans now?? Any correspondance from the CA should state a client.

My advice?? Get your payment in. How much is the loan and how much is the payment??

IF they send any letter it will be very vague. It will say temporary payment arrangements, subject to review an termination. This is standard. The CA is not permitted to put anything in writing which contradicts the orginal contract/promisorry note terms. Also, rehab paperwork is generally sent out after the 12th payment. There is no legal requirement before that time.

[tryingtodigout]

My advice?? Get your payment in. How much is the loan and how much is the payment??

The loan are currently around $9000 and payments set at $125.

Does the standard 7 year reporting apply to Sallie Mae in this case. In other words will the negative stuff come off his reports after 7 years or is that hopeless too. What will happen at that time and what should we do. The way the CA is making it sound is as though the Sallie Mae should not be reporting negatively at all since they got paid.

[tryingtodigout]

LynnInMN: I just sent you a PM as well.

Thanks for your help.

[LynnInMN]

My advice?? Get your payment in. How much is the loan and how much is the payment??

The loan are currently around $9000 and payments set at $125.

This payment is good for rehab.

Does the standard 7 year reporting apply to Sallie Mae in this case. In other words will the negative stuff come off his reports after 7 years or is that hopeless too. What will happen at that time and what should we do. The way the CA is making it sound is as though the Sallie Mae should not be reporting negatively at all since they got paid.

Yes, the 7 year SOL does apply.

[tryingtodigout]

My advice?? Get your payment in. How much is the loan and how much is the payment??

The loan are currently around $9000 and payments set at $125.

This payment is good for rehab.

Does the standard 7 year reporting apply to Sallie Mae in this case. In other words will the negative stuff come off his reports after 7 years or is that hopeless too. What will happen at that time and what should we do. The way the CA is making it sound is as though the Sallie Mae should not be reporting negatively at all since they got paid.

Yes, the 7 year SOL does apply.

Do you have any suggestions on how to get around the direct debit situation. I just cannot see why you have to give them bank info and cannot just send in payments.

[tryingtodigout]

Also, another question I have is: When you are rehabing, does that stop the lien on your taxes. Is there any way to stop it or do you have to wait till you are done with the rehab and the CA will release the lien.

[LynnInMN]

I PM;ed you. Best thing to to is to set your due date and write a letter to the CA ceasing all phone calls...contact by mail only. Make your payments on time monthly. Send CMRRR

[tryingtodigout]

I PM;ed you. Best thing to to is to set your due date and write a letter to the CA ceasing all phone calls...contact by mail only. Make your payments on time monthly. Send CMRRR

I got your PM. That makes sense. I never thought of that. I will have DH run that by the CA and see what they say. We would probably have to set the payment due date like the third week of the month but mail it the second week to make sure it credits during that month. I don't want anything to mess up this rehab. Once he is done with the rehab then we can go ahead with the consolidation.

Thanks for all your help again. I feel a little better about this whole rehab thing now. I will come back and update what happens.