University of Phoenix and FBCS, Need help resolving last unresolved account

[TheCharlish]

Hello everyone,

I need help resolving the last unesolved account on our credit reports and it is with University of Phoenix and on my wife's credit report.  Basically, they claim she owes $2400 for unpaid classes because of Financial Aid funds that were returned to the government after she withdrew from classes.  We believe it to be invalid and UOP believes the debt to be valid.  They have responded to our Debt Validation letter by simply giving providing a long letter explaining why they believe the debt to valid but with no other proof.  They then told us that if we wanted to pay or resolve the issue, then we should work with Federal Bond and Collection service.  FBCS has not responded to ANY of our DV letters and we have NEVER received any kind of call or mail from them.  Everytime we try to call the company, we get an automated message saying that they are closed.  What should we do in this case?  

[Anonymous]

We are having a similar issue with my husband's school. I would tell UoP to proof the charges are valid and provide proof that the funds were returned or you will seek legal action. But I am following to see if I can get anymore advice from others to help with my situation as well.

What we did was contact Sallie Mae (where the funds were suposely sent back to) Surprise... they didn't get the funds (6k.. you don't miss that amount of money..) So when we called the school back with taht information they suddenly changed their tune a bit and was like... Hmm.. we will look into it. Our next step is to report them for a fair debt collection practices act and if needed I am willing to retain a lawyer to correct this issue. In our case there is 100% zero chance of us truly owing the money and we asked for debt validation when we first learned of this debt (in writing time stamped) and they never responed and continued to collect on it anyways- which isn't legal. 

[IOBA]

Many moons ago, I attended UOP.   I stopped taking classes.  All was good.  They even verbally confirmed all was good and no money was owed.  (I stopped taking classes becuase they told me that my student loan money ran out so I would have to pay out of pocket for each and every class from that point on.  I said ok, take me out of school.  I am not able to pay out of pocket.

Fast forward a few years, I am in a different state, have scholarships, etc and I am back in school.  UOP refuses to release my transcripts saying I owed them nearly 4k.  

When I called them about it, they stated it was for classes not taken.  (Yes, they actually said that.)  They said I could not stop taking classes, even with a faxed/written notice I would not be taking any more classes.  Therefore, I had to pay for all of the classes on my track plan for a degree.  I disputed this with them and quoted their own policy, from their website, on how to dis-enroll.  I was able to get one copy of my transcripts sent directly to my school.  

I was not sent to collections that I know about.  And I did verbally state that if the school really wanted to pursue this, I would take it to the top.  Never heard from the school again.  My next school who contacted UOP for my transcipts said that UOP denied I was ever a student at their school.

Maybe it's a higer education thing.  Seems like a lot of schools are claiming monies are owed after a student stops taking classes.

Burgessbri - let us know how this resolves.

[TheCharlish]

How did you know who the funds were returned to?  

[TheCharlish]

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@Anonymous wrote:

We are having a similar issue with my husband's school. I would tell UoP to proof the charges are valid and provide proof that the funds were returned or you will seek legal action. But I am following to see if I can get anymore advice from others to help with my situation as well.

What we did was contact Sallie Mae (where the funds were suposely sent back to) Surprise... they didn't get the funds (6k.. you don't miss that amount of money..) So when we called the school back with taht information they suddenly changed their tune a bit and was like... Hmm.. we will look into it. Our next step is to report them for a fair debt collection practices act and if needed I am willing to retain a lawyer to correct this issue. In our case there is 100% zero chance of us truly owing the money and we asked for debt validation when we first learned of this debt (in writing time stamped) and they never responed and continued to collect on it anyways- which isn't legal. 

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How did you find out exactly what lender the funds were supposed to be returned to?

[Anonymous]

We asked the school who the sent the funds to. The said the lender- Sallie Mae. Sallie Mae as funded all his student loans- so we assumed that was the case, but verified it with the school. 

So then he called Sallie Mae and told them what was going on. They were actually super helpful and nice and looked over his account with a fine tooth comb and couldn't find any funds that were sent back and then mailed out a signed and dated letter stating that fact and a print out of his account so if it does go to court we have that proof. 

[Anonymous]

So here is an update on my personal situation.

My husband has been back and forth in communication with the school. He also disputed the school collection on the credit report on the basis that the debt was never validated and collection attempts had never ceased. So the credit bureus deleted the collection as of Wednesday. Today he gets an email from his school saying it was a computer error and the debt is discharged completely. This is such a relief! We knew there was no way we owed the money and was pretty sure it was a glitch in the computer system since this "debt" happend right after a huge issue with the student loan system at the school. 

[TheCharlish]

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@Anonymous wrote:

So here is an update on my personal situation.

My husband has been back and forth in communication with the school. He also disputed the school collection on the credit report on the basis that the debt was never validated and collection attempts had never ceased. So the credit bureus deleted the collection as of Wednesday. Today he gets an email from his school saying it was a computer error and the debt is discharged completely. This is such a relief! We knew there was no way we owed the money and was pretty sure it was a glitch in the computer system since this "debt" happend right after a huge issue with the student loan system at the school. 

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That is awesome news!  Unfortunately, ours is not going as well!  The credit reporting agencies are not willing to remove it, so far.

Also, what validation does University if Phoenix have to provide legally?  All they have provided so far is long letters and emails detailing their side of the story.  They claim that my wife never withdew before the semester started and that instead withdrew in the middle of the semester and so they had to return Title IV funds, leaving the excess balance for my wife to pay.  What exactly proves that a debt is valid?  Can an original creditor simply provide a letter/email of their side of the story and that debt is considered valid then?

I am now simply considering getting a lawyer on Monday. 

[Anonymous]

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@TheCharlish wrote:

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@Anonymous wrote:

So here is an update on my personal situation.

My husband has been back and forth in communication with the school. He also disputed the school collection on the credit report on the basis that the debt was never validated and collection attempts had never ceased. So the credit bureus deleted the collection as of Wednesday. Today he gets an email from his school saying it was a computer error and the debt is discharged completely. This is such a relief! We knew there was no way we owed the money and was pretty sure it was a glitch in the computer system since this "debt" happend right after a huge issue with the student loan system at the school. 

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That is awesome news!  Unfortunately, ours is not going as well!  The credit reporting agencies are not willing to remove it, so far.

Also, what validation does University if Phoenix have to provide legally?  All they have provided so far is long letters and emails detailing their side of the story.  They claim that my wife never withdew before the semester started and that instead withdrew in the middle of the semester and so they had to return Title IV funds, leaving the excess balance for my wife to pay.  What exactly proves that a debt is valid?  Can an original creditor simply provide a letter/email of their side of the story and that debt is considered valid then?

I am now simply considering getting a lawyer on Monday. 

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I have no idea what they will have to prove. Here is a good idea of what a debt validation letter should ask for. I used this site before and the creditor never contacted me- just deleted. My guess was they didn't have this information. I would taylor it more to your situtation of course. I would say what they have done isn't debt validation. Have you thought of filing a complaint with the Fair Debt Collection Practices Act? Maybe that would help as well.

I feel you on the lawyer. I am still tempted to sue the school because they were in violation for claiming we owed 6k, never checking into our validation, ignored letters, continuted to collect even after we asked for validation, and then finally... low and behold... we don't owe the money like we have been saying all along. I feel like they should be held accountable. But it just might be more work than it is worth. 

Edited link out.

[IOBA]

I would ask the school for all documents and receipts showing charges, funds received, and funds returned.  I would also ask for an unofficial copy of the transcipts.  

The unofficial transcripts would be for your records.  You could match up the classes taken/grades received against what the school claims happened.  Are the classes from the semester that your wife withdrew on the transcipts?  No need to mention to the school why you would like an UNOFFICIAL copy of the transcripts.

After you receive all of this, ask them for a copy of the withdrawal notice and proof the funds were returned to the lender.