waverlymike

Student Loan (paid, current) Transferred and Now in Collections??

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Wondering if anyone has heard of anything like this?

 

My student loans are current, all paid "MORE than the minimum on time if not early every month. About 1.5 to 2 months ago they were transferred to PHEAA. I have made a payment with them and it's all paid as agree.

 

My old account through (myedaccount.org) says the balance was transferred.

 

Today I see that I got a letter yesterday from NCO FInancial collecting on a defaulted loan and the creditor is National Collegiate Trust. The balance is very similar to what I owe on my student loans.

 

What is going on here? Who do I call tomorrow to deal with this?

 

Thanks.

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Please tell us more about "old account" you mention in the 3rd paragraph.  Why does THIS one get called "old"?  Is this a fully paid off account, or is it one you are still paying?  If still paying, who is it being paid to and when was the last payment?  How is it that this account says the "balance was transferred".  Did you get a letter saying so?  Was it listed that way on your credit report?  Did it name where/who the balance was transferred to?  Did it say why?

 

So NCO says it's collection is for "National Collegiate Trust".  Did you have any dealing with "National Collegiate Trust" before for any student loan?  Was it mentioned as the transferee for the "old account"?

 

What is going on here? ... well I would have no idea with what little info you have given.  Maybe a complete list of ALL your student loans (even ones you think are not relevant) is needed to start with, including a history of every payment (date and amount) and communication.

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I am having as similar problem. My student loans get transferred all the time. Seems every few months i have a different person trying to collect the loans.

 

The way these student loans get bounced around it is a wonder any one can get them paid. But to have a junk debt buyer claiming the own the account is baffling unless you defaulted on it.

 

I am searching some legal ways to deal with the student loans, try going to law school and having the amount of loans i do. If they tick me off enough i will bk them.

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I have one other small student loan that I had defaulted on that I had negotiated a settlement with and paid about a year ago. That was only for about 6,000.

 

This collection notice was for around $14,355 dated owed from right around when it was transferred.

 

I owe $13,995 on my current student loans.

 

When I say my "old account" I mean that loan servicer or provider or whatever that I was paying to until about 2 months ago. Then it was transferred and I pay on the new website. It says the balance was transferred, I talked to the servicer and they said it was transferred. I believe that PHEAA has taken over a bunch of Direct Loans. 

 

Everything has been paid on time, the only difference is that the loan was transferred. I don't understand how this happened. Any other info I could give you?

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Any owner of a loan is within their rights to sell it.  Or outsource the servicing of collection or change the servicer.  Current debts can be sold just as charged off (junk) debts can be sold.

 

YOU need to have the right notification that the change has taken place.  The diligent person will then verify it since forgery is so rampant by scammers these days.  If I were an evil soul, I could find out who you currently owe, send a change of address to your real creditor to buy some time, send YOU a notice looking just like their letterhead saying my operation is the new owner.  Attempt tricks to get you to pay more (like a 50% pay off early offer), and eventually run and hide and set up shop elsewhere later and do it all over again.  So when a creditor says it is sold or transferred, you do NOT know this is so unless you communicate with them in the way you know it is really them (call them at the number you already have, not the number given in the notification letter), and verify that the notification is genuinely from them.

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Ya, they keep crappy records when they are in process of selling the loan. I once had a car loan that was sold, I paid the new people for almost a year. By my paperwork, the loan was paid in full. They come back 4 months later saying I owe 3 grand.

What I did back then was dispute the debt, saying my records showed it paid in full. I then asked them for a complete accounting. I then had to show them my cancelled checks ( this was back when they still sent them to you) and they conceded.

I would ask them for a complete accounting, then find what payments did not get applied, and show them they were made.

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This is what happened. Apparently it has nothing to do with my current loans.

 

I had my old private loan which I took years ago and defaulted on. It was for around $6000. This was in I believe 2004. I believe it must have been federally guaranteed since NCT is dealing with it? Also, I believe to try to help me, in 2008 my father worked out a payment plan and made a payment or two (which I assume restarted the SOL even if there was one - which I don't think there is on this, correct?).

 

In December I settled with the collector (Richard J Boudreau) for $3700 which was half of the amount owed. They were representing the original bank that disbursed the loan (Citizen's). I have the letter saying that once the payment is received it will be settled in full. I just called them, they said it has been settled and they are re-faxing and mailing me the letter saying such.

 

I just spoke with the collection agency (NCO) who said that it is reporting I owe $14k something from the National Collegiate Trust. I have only ever taken one private student loan that wasn't taken care of. Is it possible that somehow there was a disconnect and NCT wasn't notified? Once I get a copy of the letter saying it is settled, who should I work with - NCT, the bank or NCO?

 

DAMMIT I have been so good about fixing my credit this is just more stress for me to deal with!!!

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I have another question now. They are saying that I took another private loan out which I don't even remember. I'm fighting it and asking for all appropriate documentation but I have a question about it. If it is a private student loan through Charter One Bank, what is the statute of limitation on it? Is it 6 years in New York?

 

Apparently there was a payment made on it in April of 2008. When I talked to them I didn't acknowledge that it was mine - I was actually quite vehement that it wasn't mine. But let's just say that it is, then do they only have until April of next year to sue me for it?

 

Also, if it turned out that it was in fact mine, what are the odds of being able to settle for a lump sum? If it's about 14,300, what would be a good offer? The most I could afford would be about 5,000 and that would be taking money from my retirement plan, so the absolute max.

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Also, can anyone answer this? If the loan was from 2004, but somebody (I believe my father) made a payment on it in april of 2008, does that restart the statute of limitations? Does it have to be me who pays it to restart it or does it get restarted if anybody pays it? They said somebody logged in into my account and paid it. I assume there's no way to prove it wasn't me? And even if it wasn't me, would it make a difference?

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You don't have to prove a negative.  You don't have to move it was not you.  It is up to them to prove who did (and by their presumption, that being you).  If they do come up with something they call proof, then it's your turn to challenge it (easy if it is not genuine proof).

 

We know that it happens very frequently that some collector will say that you are responsible for proving it was not you.  Once you hear that from a collector, you now know they are totally ignorant (which you would have been assuming anyway up to that point).  Tell them that since they said something that is totally false, it is no longer possible to believe anything they say.  Then hang up (do not tell them to have a nice day).

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Also, can anyone answer this? If the loan was from 2004, but somebody (I believe my father) made a payment on it in april of 2008, does that restart the statute of limitations? Does it have to be me who pays it to restart it or does it get restarted if anybody pays it? They said somebody logged in into my account and paid it. I assume there's no way to prove it wasn't me? And even if it wasn't me, would it make a difference?

@waverlymike - Someone logged into your COLLECTION account?  Student loan account?  How can they prove this?

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If you need, I can construct some fake log files that prove someone logged into my web server.  I can even make it say it was YOU ... and (falsely, of course) demand that you have to prove it was not you.

 

Or maybe I can make fake log files that prove it was NOT you and you claim you hired some Russian hacker to extract it for you.

 

Given the MASSIVE number of companies that get broken into constantly, including big security companies (disclaimer, I work for a competitor), I would have absolutely zero faith that anything they say about their computers can be assured to be in good faith, if even understood.

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contract loans are different than cc type loans.  They are usually for a specific amount, and are not open to further credit.  Check your NY rules for civil procedure, if it says the SOL is from when the loan is defaulted on, then that one payment is not going to reset the SOL unless that one payment caught you up and your account was no longer in default.  Check your rules on this, as each state is different, but several states I have run across have different rules for contract loans, and that is the way they do it.

 

Also if they do sue you, they need to produce the written contract.  Student loans are not credit cards, and you should have signed for it.

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I believe it was with the loan company, not the collector that the payment was made. And I'm fairly certain it was my father. I asked for how it was paid, the CC number, etc and they said it was always done by bank account and routing but they did not have that information (This was talking to AES/national collegiate trust, not NCO).

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I believe it was with the loan company, not the collector that the payment was made. And I'm fairly certain it was my father. I asked for how it was paid, the CC number, etc and they said it was always done by bank account and routing but they did not have that information (This was talking to AES/national collegiate trust, not NCO).

@waverlymike - In New York, only a new written promise to pay restarts the SOL, if there is indeed an SOL on this loan.  

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