Reply
New Visitor
jww966
Posts: 1
Registered: ‎11-30-2012

Handling 2 defaulted private loans in collections in Pennsylvania

[ Edited ]

Sadly as most, I'm coming here for bad reasons and hoping for advice!

 

I have 2 defaulted private loans totalling roughly $60k (I'll spare the story, mistakes were made) that defaulted in 2011. The loans are still through National Collegiate Trust. I started working with MRS Collection services at that point and after a ridiculous amount of work, agreed to a payment plan. After 3 months of no checks cashed I found out they didn't have the account anymore. The account was then transferred to Sentry Credit.

 

At this point (early 2012) I agreed to a payment plan of $300 plus their $10 fee for payment (which I question the legality of charing me $10 for an electronic check). All was fine and dandy until now when I received notice from NCO that they are now servicing the defaulted loans and they start blowing up my Dad's (cosigner) phone for full payment. Obviously each one tries to get a lump sum to settle the debt, which obviously if you're in this position you don't have.

 

Each place has refused to do a long term payment plan. I'm in a much better financial position than I was when the loans defaulted and I can afford consistent monthly payments that would be greater than the actual loan payment would be. I have told them this and they have no interest. They put me on some temporary payment plan until I come up with the funds to pay it off in a lump sum.

 

These options aren't helping. Other than these two loans, my wife and I pay about $1200/month for her loans and my federal loans. Our combined income is well above average now ($85-90k) but this type of cash is simply too difficult to come up with. I want a real, long term option. We're perfectly capable of paying the money back over a reasonable amount of time.

 

I've considered Chapter 13 but an attorney I spoke to advised against it and said negotiating a payment plan is best. But I've been unable to do that since they refuse to give me a long term option or even put anything in writing.

 

How do I fix this long term without winning the lottery? Thanks in advance for any advice!

Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009

Re: Handling 2 defaulted private loans in collections in Pennsylvania

My suggestion would be to do a short term payment agreement with them.  When that term is up, just keep paying as though it was still the plan.

 

If you haven't already, I would suggest sticking to the original payment instead of paying them more than what the loan would have been.   The reason for this is - if they think you can pay more now, they will keep pushing and pushing for more money each time.   I understand that they have a job to do, and that you do owe the money,  but they need to be reasonable and work with you.

 

If you are paid every two weeks, I would suggest sending in a payment (1/2 of what the payment should be).  It keeps  the money flowing and makes the CA feel better about your commitment to pay the debt.

 

Let us know how it goes...


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+