Need Help to Fix This - Creditors Interchange

[Raidra]

I had a student loan that went to collections. The collections agency is Creditors Interchange. I didn't know it went to collections, the mail they must have sent got thrown out (CI mail looks like junk mail). I only found out when they started calling my grandmother, who co-signed my loan.

I called the agency to discuss setting up a payment plan and she was nice but persistent. I was in the process of figuring out the best way to do so safely (what I should mail in, etc.. I'm totally new to this), when my mother answered my phone for me when I was out one morning and made a payment over the phone. When I called the agency back to request that they at least fax the terms of repayment to us, she did seem apologetic, but honestly, I was so angry at my mother that I didn't even address the issue with the agency.

So, I've paid twice more now. I thought she had told me that the payment was due on the 18th of every month, but they started calling early this month, and even called my father on his work phone (my mother had given it to them in the hopes that they wouldn't call my grandmother). When I called CI, they said that the due date isn't the same every month, that the due date is 30 days from whenever they receive a payment.

Now, I went to ask my husband to look at the fax he got from them, and he can't find it. He doesn't remember that little stipulation being written out, but we can't be sure. I never signed anything, though, apart from the checks I've sent them.

So what do I do now? She said that if they didn't receive payment in two days that the whole amount would be due ($13k) and they would start calling my grandmother again. She wasn't overtly threatening, but was very rude. I ended up hanging up on her. I put a payment in the mail yesterday after I told her I refused to make a payment on the phone. She called again today and left a message (I don't answer the phone when they call) saying they hadn't gotten my payment. Well, duh.

Is there any way I can salvage this situation? I'm sure the SOL hasn't run out, it only went to collections a year or two ago. Like I said, I've never really dealt with collections agencies before except for very small amounts ($100 or less) which I always paid off in one payment. The idea of having to deal with this stupid company for years while I pay $13k is just horrible. I really don't want them calling my grandmother.. she's very ill, just filed bankruptcy two or three years ago, and has no money anyway.

Thank you so much, I really appreciate any advice you can give me.

[BV80]

If I'm not mistaken, federal student loans have no SOL. Was it a private loan?

[Raidra]

It was a TERI loan, I think that's private.

[BV80]

First, find out the SOL in your state for contracts. If it only went to collections a couple of years ago, it's probably still within the SOL.

If it were me, I would contact a rep for Teri loans. See if you can deal with them rather than with the CA. If they cooperate, make sure they contact the CA, and tell them they are making arrangements with you.

If the rep for Teri loans won't deal with you, ask to speak his supervisor or someone else in charge. Speak to everyone you can to try to get it out of the hands of the CA.

If you end up having to deal with the CA, send them a letter stating that they are to contact only you concerning the debt and that they are not to contact your parents or grandmother. I'm not sure if they would be required to cease contact with your grandmother, since she's a co-signer.

You could also consider talking to an attorney. Most attorneys provide a free consultation. It wouldn't hurt to talk to one, and find out your options.

[Raidra]

Thanks. I called the company that had been servicing the loan (AES), they said they couldn't do anything and suggested I call TERI directly. I had to leave a message, though.. who knows if they'll call me back.

Would there be any use sending a DV letter to them at this point, given that I've already paid a few months? Like I said, I never agreed to anything in writing.

I'm printing out a cease and desist letter asking all correspondence to be in writing. My grandmother could do this as well, right?

Thanks!

[BV80]

Would there be any use sending a DV letter to them at this point, given that I've already paid a few months? Like I said, I never agreed to anything in writing.

You could, but I'd talk to TERI first. Hopefully, you can make some headway with them and get it out of the hands of the CA. A TERI rep could also confirm whether or not they turned it over to Creditors Interchange for collection. I don't trust CAs.

I'm printing out a cease and desist letter asking all correspondence to be in writing. My grandmother could do this as well, right?

She could, but considering she's a co-signer, if you stop making payments or refuse to pay, I'm pretty sure they have the right to contact her. That's what she agreed to when she co-signed. She would be responsible for the loan if you couldn't or wouldn't pay.

When you talk to TERI, request they send you a copy of the contract/agreement, so that you can read everything it states concerning collection, contact, etc. Just tell them you lost your copy and need another for your records.

Another thing you might do is check your credit report to see what's being reported.

[Aleksander16]

I had a student loan that went to collections. The collections agency is Creditors Interchange. I didn't know it went to collections, the mail they must have sent got thrown out (CI mail looks like junk mail). I only found out when they started calling my grandmother, who co-signed my loan.

I called the agency to discuss setting up a payment plan and she was nice but persistent. I was in the process of figuring out the best way to do so safely (what I should mail in, etc.. I'm totally new to this), when my mother answered my phone for me when I was out one morning and made a payment over the phone. When I called the agency back to request that they at least fax the terms of repayment to us, she did seem apologetic, but honestly, I was so angry at my mother that I didn't even address the issue with the agency.

So, I've paid twice more now. I thought she had told me that the payment was due on the 18th of every month, but they started calling early this month, and even called my father on his work phone (my mother had given it to them in the hopes that they wouldn't call my grandmother). When I called CI, they said that the due date isn't the same every month, that the due date is 30 days from whenever they receive a payment.

Now, I went to ask my husband to look at the fax he got from them, and he can't find it. He doesn't remember that little stipulation being written out, but we can't be sure. I never signed anything, though, apart from the checks I've sent them.

So what do I do now? She said that if they didn't receive payment in two days that the whole amount would be due ($13k) and they would start calling my grandmother again. She wasn't overtly threatening, but was very rude. I ended up hanging up on her. I put a payment in the mail yesterday after I told her I refused to make a payment on the phone. She called again today and left a message (I don't answer the phone when they call) saying they hadn't gotten my payment. Well, duh.

Is there any way I can salvage this situation? I'm sure the SOL hasn't run out, it only went to collections a year or two ago. Like I said, I've never really dealt with collections agencies before except for very small amounts ($100 or less) which I always paid off in one payment. The idea of having to deal with this stupid company for years while I pay $13k is just horrible. I really don't want them calling my grandmother.. she's very ill, just filed bankruptcy two or three years ago, and has no money anyway.

Thank you so much, I really appreciate any advice you can give me.

As for SOL your mom refreshed that for you via payment, CAD is almost certainly going to ensure this thing follows you forever... as far as i knew Creditors Interchange only handles Key and Sallie Mae student loans... Technically because you mail in payments you aren't on what that retarded office deems a "solid, formal arrangement" You honestly are better off setting up post dated checks for 12 months which is the max they can take them for... it saves you time, money, and head aches... I'd make the small monthly payments until you can settle the account, I had a similar situation with a smaller student loan handled by a different agency. I think Creditor's actually lets you make 1 payment every month as long as it is no more than 35 or 36 days apart, i forget the details... my girlfriend had some stupid lvnv account placed with them... They definately break the law frequently... you could always hope they do and sue the pants off them! If you want to handle it and it was placed with them though, set up checks it is just easier and you don't have to deal with their BS tactics...