Collection on a loan in good standing?

[GlitterGal]

So, I have a private student loan that was cosigned. About 6 months ago, it came out of deferrment. Since then, I have made every payment, usually more than the minimum.

Today, my cosigner calls me and is very upset. CCA has called about this loan and wants to settle. This sounds a little strange to me and I call them.

They say that the bank that originally issued the loan has been closed, and since it is a private loan, that makes it automatically defaulted. They agree that I have made appropriate payments, but they want me to pay the rest right now, and if I don't, they are threatening to sue.

I have my original loan paperwork, which says nothing about a situation like this and I really think this is probably some sort of scam.

Has anyone ever dealt with something like this?

[nascar]

I can tell you one thing for certain - if CCA is involved, you can bet something isn't right. Who is your new creditor?

[GlitterGal]

Someplace called American Education Systems. I tried calling them yesterday and their automated system says everything is good with my account and disconnects me before I can talk to a real person.

When my cosigner said someone from CCA had called, that sent up HUGE red flags, especially since they didn't call me. I do have a few small collections left on my CR, but I also know exactly who is handling those.

[Laine540]

I have never heard of a situation like that. It's kind of scary.

I wonder if you could just go to a few new banks or lenders like Sallie Mae and talk to them about taking over the student loan? I guess this would mean a new application and getting a new loan to just pay off the old one, and your co-signer could get involved with the new loan as well.

[LynnInMN]

I have never heard of a situation like that. It's kind of scary.

I wonder if you could just go to a few new banks or lenders like Sallie Mae and talk to them about taking over the student loan? I guess this would mean a new application and getting a new loan to just pay off the old one, and your co-signer could get involved with the new loan as well.

Nope...sallie mae is out of the student loan private lending business plus they would not buy a default. If the loan has defaulted, a bank wont lend it to her either.

OP....call the AES number again and hit #, *, or zero...anything to get to a live person. Find out what happened. Something doesnt sound right.

How long where you in deferment? A bank closing doesnt make a loan default....it just gets transfered or sold. You need to find out why they put you into collections...could be in error.

[jq26]

A bank closing doesnt make a loan default....it just gets transfered or sold. You need to find out why they put you into collections.

I agree with Lynn. Something is amiss here. Banks get closed, but the loans get transferred not closed, and there is no acceleration clause based on bank closure.

Go to your original lender or whomever is servicing this loan. Start there and try to follow the trail. I would not give this company one red cent.

[LynnInMN]

In this case, it is NOT the CA's fault. The account was assigned and expectations are that it will be collected. Debtors make up stories all the time and it is the CA's job to blow them off.

[jq26]

In this case, it is NOT the CA's fault. The account was assigned and expectations are that it will be collected. Debtors make up stories all the time and it is the CA's job to blow them off.

Fair enough, but she has proof that the account is current. She has been paying the loan timely. The CA isn't just trying to collect here. They made up a story about the bank closure leading to the full amount being due immediately. Sounds totally bogus.

AES services my loans. They are excellent. I never have an issue. Straight-shooters and very to the point. Go through AES and get to someone in person. In fact, if you go online, there is a feature where you put in your phone info and a live person calls you shortly. No holding required.