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Balance owed to college has gone to collection agency ?

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EricsMom
Member

Balance owed to college has gone to collection agency ?

My son received a letter yesterday from Enterprise Recovery Systems, Inc and they are looking to collect $993.65 (of course only $785.00) is actually owed the university for an outstanding balance he owed the school.  Basically he took student loans to go, had NO idea there was a balance left over, has been out of school almost a year, received nothing, not a letter or a phone message that he owed this money.  As a matter of fact when he went on the schools website yesterday to verify this he had to create a new password - hadn't logged in in so long he didn't even know what it was.  Anyway he talked to the university last night - they indicate they did try to call him a few times the last year but did not send any type of paper correspondence ?  Seems odd to me - but he also attempted to request they bring the debt back from the collection agency and he would just pay them - having it removed from his credit report - if it is on there yet - but they refused.  Next step - is this where a PFD would work with the collection agency ?  He can pay the balance and I hate to see him start his "adult life" with a collections on his credit report.  Also - does anyone have to notifiy you in writing that they are sending a debt to a collections agency ?  I just found that odd - thanks everyone.

Message 1 of 5
4 REPLIES 4
rckstrscott
Valued Contributor

Re: Balance owed to college has gone to collection agency ?


@EricsMom wrote:

My son received a letter yesterday from Enterprise Recovery Systems, Inc and they are looking to collect $993.65 (of course only $785.00) is actually owed the university for an outstanding balance he owed the school.  Basically he took student loans to go, had NO idea there was a balance left over, has been out of school almost a year, received nothing, not a letter or a phone message that he owed this money.  As a matter of fact when he went on the schools website yesterday to verify this he had to create a new password - hadn't logged in in so long he didn't even know what it was.  Anyway he talked to the university last night - they indicate they did try to call him a few times the last year but did not send any type of paper correspondence ?  Seems odd to me - but he also attempted to request they bring the debt back from the collection agency and he would just pay them - having it removed from his credit report - if it is on there yet - but they refused.  Next step - is this where a PFD would work with the collection agency ?  He can pay the balance and I hate to see him start his "adult life" with a collections on his credit report.  Also - does anyone have to notifiy you in writing that they are sending a debt to a collections agency ?  I just found that odd - thanks everyone.


Yes. They are required to send a dunning notification within 5 days of first collection activity.. are you sure your son didn't receive a letter from them?

 

Is it showing on his credit report?

Starting FICO Score: October 2010: TU 498 | EQ: 502
Current FICO Scores:: May 2022: TU: 784 | EQ: 770 | EX: 790
Message 2 of 5
Repo-ed
Senior Contributor

Re: Balance owed to college has gone to collection agency ?

Pull reports. Send DV. Send PFD.

5/2012: 560 credit scores across the board
12/2014: 750+
3/2017: 780+
11/2019: 833
2/2023: Experian via Chase United Explorer CC pull - 891
Message 3 of 5
EricsMom
Member

Re: Balance owed to college has gone to collection agency ?

Yes - I am sure they sent him no written correspondence.  They have my address on all his paperwork and none of that has changed.  The college actually stated to him that they sent nothing in writing ?  I have not pulled his report yet - waiting for the steam to stop coming out of my head.  Have spent the last 4 years shoving the importance of credit down his throat and out of the blue this shows up.  Am I way off base to think that the college actually has the ability to pull this back if it is indeed on his credit reports ?

Message 4 of 5
2NE1
Established Contributor

Re: Balance owed to college has gone to collection agency ?

I doubt the school can pull it back. I'm on the same boat. My FAFSA did not go thru and it was too late to apply for student loans, $3714 went straight to collections and the CA wouldn't budge for a PFD and apparently college tuition you can't settled for less Smiley Indifferent I started paying it off last August and I've got $170 left. Good luck with yours OP!
Message 5 of 5
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