cancel
Showing results for 
Search instead for 
Did you mean: 

Collections Situation, What Should I Do?

ejoshmo
Established Member

Collections Situation, What Should I Do?

Hello All,

 

Thanks for any help or advice you can give me.  In 2004 I received a private education loan for something like $7,000.  I graduated from college in 2008 and immediately  tried to contact the company to start repaying the loan.  They adivsed me that I defaulted on the loan in October of 2006, and it was in collections.  I was shocked, because the loan was in deferment at the time.  When I asked why, they claimed that my cosigner (my mother) claimed bankruptcy, which defaulted the loan.  My parents never told me this, but when I called and asked them they told me it was true and that they had no idea my loan was affected.  Upon calling the CA I found out that my parent's bankruptcy was paying on the loan (about $100 per month), but I would be responsible for the balance after the bankruptcy was over.  My dad called me and said they just finished paying their last bankruptcy payment last month, so now it is time for me to contact this CA again.

 

I just want to do this the right way, since the CA has not posted the collection on any of my CRs.  The only thing that shows up on my CR is the original loan from the OC, which is listed as a defaulted education loan.  In my research I have found others say that after the 7-7.5 year mark after the DOFD it may be pointless to pay on the collection anymore.  Is this true?  should I contact to CA or just wait to see if they contact me since it will be 7 years in october of 2013? If I should contact them, is there anything I should do or keep in mind?  Is there anything I can do to keep the CA from reporting the collection on my CR and destroying my credit even more?  Thanks again!

Message 1 of 5
4 REPLIES 4
RobertEG
Legendary Contributor

eudRe: Collections Situation, What Should I Do?

While you state that this was a private educational loan, are you sure that it was not government insured or guaranteed?

 

I ask because the reporting periods under the FCRA are lengthened for such government insured or guaranteed loans, and may not be the normal 7 1/2  years specified in FCRA 605(a) and 605(c).

See the statutory footnote under FCRA 605(a)(4), which states that the 7 year period for collections is extended under sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965  (20 U.S.C. 1080(a)(f) and 20 USC 1087cc(c)(3), respectively).  Concurrent provisions of that statute may also affect your state SOL.

I jiust advise caution in reliance on the loan as a nornal consmer loan subject to the normal reporting or SOL periods.

Message 2 of 5
jaycarney85
New Member

Re: eudRe: Collections Situation, What Should I Do?

If it had been a government loan I doubt it would have been able to be included in the BK?

http://loans.freenetwrk.net
Message 3 of 5
beamMEup
Moderator Emeritus

Re: Collections Situation, What Should I Do?


@ejoshmo wrote:

Hello All,

 

Thanks for any help or advice you can give me.  In 2004 I received a private education loan for something like $7,000.  I graduated from college in 2008 and immediately  tried to contact the company to start repaying the loan.  They adivsed me that I defaulted on the loan in October of 2006, and it was in collections.   I was shocked, because the loan was in deferment at the time.  Do they have your correct contact information?  I'm wondering why you have not received anything in writing - or even any phone calls. When I asked why, they claimed that my cosigner (my mother) claimed bankruptcy, which defaulted the loan.  My parents never told me this, but when I called and asked them they told me it was true and that they had no idea my loan was affected.  Upon calling the CA I found out that my parent's bankruptcy was paying on the loan (about $100 per month), but I would be responsible for the balance after the bankruptcy was over.  My dad called me and said they just finished paying their last bankruptcy payment last month, so now it is time for me to contact this CA again.

 

I just want to do this the right way, since the CA has not posted the collection on any of my CRs.  The only thing that shows up on my CR is the original loan from the OC, which is listed as a defaulted education loan.  In my research I have found others say that after the 7-7.5 year mark after the DOFD it may be pointless to pay on the collection anymore.  Is this true?  should I contact to CA or just wait to see if they contact me My concern again would be if they do in fact know how to contact you.  If you've moved, they may not be aware of your current contact info.  since it will be 7 years in october of 2013? If I should contact them, is there anything I should do or keep in mind?  Is there anything I can do to keep the CA from reporting the collection on my CR and destroying my credit even more?  Thanks again!


You always hate to stir up a bees nest, but if it were me (and it's not) I would want to know the current status of the loan.  Hopefully other folks will chime in on this.

Just puttin' syrup on something, don't make it pancakes.
Message 4 of 5
ejoshmo
Established Member

Re: Collections Situation, What Should I Do?

Yes, they do know my contact information.  When I originally contacted the CA I gave them my contact info.  Also, this sloan is not government backed, AFAIK.  This loan originated before private education loans were government backed, again AFAIK.

Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.