06-26-2012 10:34 AM - edited 06-26-2012 10:35 AM
I filed a complaint on keybank in regards to their collection practices. Executive offices called me today, I explained the situation and the woman was very understanding. I told her that my mother was on a PLUS loan in school, I wasnt notified of any late payments until it was charged off, 90 days late. At which point the collector from key bank told me I could only pay in full, threatened to sue me, and hung up on me.
I informed her that I simply wanted to get it under control and attempt to get the payments sent to me and monitor the loan myself as opposed to my mother. I told her my attempt was to rehabilitate the loan, but was told that key bank did not do that and I had to pay in full, when it was a federal student loan and they shouldnt have said that. She told me the debt was sold to an outside collection and she was going to attempt to retreive the debt and I would have to file hardship papers and get it approved to do so. I explained my desire was to get the negatives off of my report and resume the loan, because the settlements would not be an option for me.
The Kicker: I DV'd the company the debt was sold to, and they dont show on my CR and have stopped attempting to collect the debt.
So did I just awaken the beast for this debt and potentially cause more harm than good? Or does this sound like good news if it works out and goes back to KB.
Of course I'll get any resolution in writing, but the executive was very kind and mentioned she knows how 18 year olds are, that she has a son that is waking up to the real world and she understands.
Cross your fingers for me!!!!! Im very nervous :/
06-26-2012 01:58 PM
You state that the debt was sold to the debt collector. Are you basing that only on the fact that they have contacted you, or are you sure that it was sold?
If it was sold, the OC account would be closed, and the debt with the OC would be $0. So deletion by the OC would require a GW deletion on their part.
If your DV was timely, the debt collector is precluded from continuing collection on the debt, including reporting to the CRAs, so you are temporarily in good shape with respect to reporting. However, if an when they provide debt verification, they are free to resume collection and report to the CRAs.
You did the right thing for now. The next chapter in the collection is up to the debt collector.
Meantime, I would call the OC and determine if you can still work with them...i.e., whether or not they still own the debt.
06-27-2012 06:01 AM
It was sold for sure, key bank even said that. I sent them DV the week I first spoke with them and have yet to hear back, which was around 2 months ago. Key Bank is reporting the loan closed, then a seperate account that reports the charge off, still key bank. So it shows as 2 derog accounts when its the same one. My hopes were to get it removed.
The exec said she was going to contact them about getting the debt back, but key bank balance shows written off balance $0 so I dont think that can happen.
I just want to do the best for my score, and this woman is supposed to call me back about doing payments on the debt, but I dont want to do that if it will re-activate something negative. Only if it will improve it. I guess I'll just include that in the stipulations of my request.
06-28-2012 12:29 PM
UPDATE: Spoke with the exec today. She said the debt WAS sold... so she could not provide me the information about the account, but gave me the CA info (which I DV'd 60 days ago with no response and wont bother with until I receive one)
I explained the way the account was reporting as 2 seperate accounts, one with key bank and one as key bank AES, but for the same account. She requested I send the report showing that. I faxed it to her and in the process noticed the account numbers are different. Last four on one account is 0001, and the other is 9001, but both have same dates, amounts, details, etc.
Ive disputed this with the CRAs but they just come back "verified" if I call and dispute the account number is wrong, will they just update it or delete it?
Whats the best step now?