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Any Idea what to do next? Questions too....

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GettingBetter66
New Contributor

Any Idea what to do next? Questions too....

I sent ECMC a request to validate a debt that they reported to the 3 CB's.  They responded by sending me a computer print out (that is impossible to make heads or tails out of) and a letter stating that the loan was from 1988 and received at a school that I did not even attend.  I sent another letter filling them in on proper validation and letting them know that I did not attend that school and again requested validation of the debt.   I later spoke with a representative and she stated that their paperwork was wrong and that the debt was from another school that I did attend in 1988.  She said she would send me the new paperwork.  I have not received a written response from them regarding the 2nd validation letter and have not received the any revised paperwork.

They have already collected $4700.00 (original loan was $2200.00) through IRS offsets, garnishments and chapter 13 payments on this alleged debt that they have all messed up and it doesn't look like they are able to provide me any type of validation.

Where can I go from here?  I want it off my credit reports and want them to quit harassing me.

Do I have a chance to sue them for collecting on a debt that is not mine?

Message Edited by GettingBetter66 on 11-10-2008 03:08 PM
Message 1 of 16
15 REPLIES 15
LynnInMN
Frequent Contributor

Re: Any Idea what to do next? Questions too....

How can you sue them when the debt is yours??

The matter will not be dropped until the debt is paid. ECMC is a specialized guarantor that handles loans that were included in BK. Sounds like from the print out they have validated the payments, although often those print outs can be very confusing.


$4700 paid on a 20 year old loan of $2200 is not unreasonable and I definately could see you owing significantly more. You have late fees, interest, capitalized interest and collection fees of up to 25% assessed to your account. All have to be paid. And if you leave it much longer, the DOE will take over the account, apply more charges and start the reporting cycle all over again.
Ex-Financial Aid Officer

Ex-Student Loan Collector
Message 2 of 16
GettingBetter66
New Contributor

Re: Any Idea what to do next? Questions too....

I didn't say that this debt is mine.  I do not remember getting a student loan in 1988 at the school that I did attend.  It wasn't even a real college and was shut down while I attended for fraud.  ECMC will not provide me with any paperwork showing that I received this loan.  Shouldn't they have something showing that I received it?  And why should I have to continue to pay on a debt that they say I received at a school I didn't attend?  Where does the validation process enter into this? 
Message 3 of 16
LynnInMN
Frequent Contributor

Re: Any Idea what to do next? Questions too....

I am really curious how a debt you dont think you owe got listed on a Chapter 13. You actually would have had to list it for it to get payments.

Have you ever asked for a copy of the prom note? Have you ever checked on http://www.nslds.ed.gov/nslds_SA/

Have you ever applied for loan cancellation due to school closure???



Ex-Financial Aid Officer

Ex-Student Loan Collector
Message 4 of 16
GettingBetter66
New Contributor

Re: Any Idea what to do next? Questions too....

The loan that was listed on my chapter 13 was from a loan I received in 1992 while attending community college.  I had assumed that this was the debt that ECMC was trying to collect on.  The web site show the loan I got in 1992 as paid in full with a 0 balance.  It also show that the holder of the loan was Suntrust Bank/ECMC. I didn't realize that there was another supposed loan out there.  This supposed loan does not show up on any of the web sites that have information on student loans.  Yes, I have asked ECMC for a copy of the promissory note and that is what they have failed to provide for me.  They say they have it but will not send me a copy.  The payment history that ECMC did send,  is noted right on their own paperwork as a loan in 1988 to a community college I did not attend.  Again.... I cannot find any information about this loan anywhere and won't be able to, because I couldn't have possibly got a loan at a school I never attended.  It is such a mess and no one seems to want to listen when I say it is not mine!
Message 5 of 16
GettingBetter66
New Contributor

Re: Any Idea what to do next? Questions too....

Okay.... another check of the web site you listed shows this (which has changed since last time I checked):

 

A total of 3 loans taken out at Mr. Jay Academy of Cosmetology

 

Two loans both Supplemental Loan (SLS) disbursement date of 9/24/1987.  One is listed as 2625.00 loan amount and the other as 2500.00 but the disbursement amounts are the same, $2500.00. The $2500.00 loan is paid and the $2625.00 show in default.

 

The other loan is a Stafford with a disbursement date of 1/2/1988.  The loan amount is $2625. and so is the disbursement amount. - Paid status

 

Now if I am reading this correctly it is saying I received two SLS loans on 9/24/1987 both in the amount of 2500.00.  One is paid and the other isn't.

 

It is also my understanding that you cannot get more than one loan of one type at a time.  So I'm I missing something.........

 

This also does not take into account that I DID NOT RECEIVE THESE LOANS!!!!!!  And where did the loan go that I did get when attending community college?????  Why is the information different today then a few weeks ago???  Something is not right here......

Message 6 of 16
LynnInMN
Frequent Contributor

Re: Any Idea what to do next? Questions too....

Ok...I looked up the historical limits on borrowing for that time period. You maximum you were eligible for was $2625 in stafford loans and $4000 of SLS. http://www.finaid.org/loans/historicallimits.phtml

Your dispersments would have been paid directly to the school. Do you remember what the tuition was? Beauty schools are not cheap...even in 1987 the tuition would have been somewhere in the area of $5000. Did you pay anything out of pocket\?

I would call ECMC and tell them you want copies of the prom notes ASAP. If they refuse, then you tell them that you will be calling the student loan ombudsman. http://www.ombudsman.ed.gov/about/about.html Then follow thru and follow up with them.



Ex-Financial Aid Officer

Ex-Student Loan Collector
Message 7 of 16
GettingBetter66
New Contributor

Re: Any Idea what to do next? Questions too....

I have spoken directly to a account rep and the ombudsman at ECMC.  I have sent 1 fax and 2 certified letters.  I have written the President, Vice President and Western Region Manager of ECMC.  They will not and have not sent me anything showing that I signed for these disbursments (the ombedsman said that she would, when they figured out the mistake).  The only thing I have received is a letter (very long and does not make sense) and the ledger dealing with a loan in 1988 to the community college.  I have told them I will seek legal help if needed.  They won't budge.  They just try to set up a payment plan and talk a lot of nonsense, threaten garnishment, IRS offset and all manner of collections.  I have just had it.  I scheduled an appointment for next Wednesday with an attorney that may be able to get something done when I can't.  Thank you for all your help..... it just seems there is nothing I can do short of legal help.

And to answer your questions.... no I didn't pay for school.... a program I was enrolled in at the time paid for it and my daycare while I attended, if I remember correctly.  I think it was a WorkFirst program of some type.  I was a very young single mother at the time and like I said the school closed while I attended.  I don't remember how much tuition would have been, but I attended less then a year.

When you mention the historical limits, does that mean I could have got $2625 and $4000 all on one day?  Even if that is true it still puts me over the limit for a years worth of SLS in one month.  I just don't get it!  Wouldn't I have had to sign something?????

Message 8 of 16
LynnInMN
Frequent Contributor

Re: Any Idea what to do next? Questions too....

Ok...the student is never required to sign for the dispursment so there will be no signatures for that. Once you sign the prom note and it is submitted, the funds are send directly to the school and applied to your student account. If there is money left over, you get it. So you are wasting time and money asking for this....it just doesnt exist. The only signatures will be on the prom notes that you signed.

ECMC ombudsman??? The link I gave you is for an ombudsman thru the DOE. Outside of the ECMC.

The limits I gave you for the loans are yearly limits. $2625 sfafford, $4000k sls. Usually for a one year program it is dispursed in 2 or more segments.

How much are they saying you owe now??

Ex-Financial Aid Officer

Ex-Student Loan Collector
Message 9 of 16
GettingBetter66
New Contributor

Re: Any Idea what to do next? Questions too....

They have collected $4165 and are now saying I owe another $4200 give or take a few dollars.  It changes each time I speak with them.  I spoke to the ECMC ombudsman after she was given my letter that I wrote to either the President or VP of ECMC.  She was of little to no help at all.  She said that they had made a mistake and that she was trying to fix the error (dealing with the school and date).  She said she would send a copy of my signature as soon as she could get it.  She also said that "I signed for the disbursement".  Those were her words.  I haven't heard anything from her since then (over 3 weeks ago) yet they continue to send letters in the mail with their run of the mill threats.

It makes no sense at all.  If they have nothing to give me then they need to remove the entry from my credit report and quit with the threats.  I am also just waiting to pick up my check and see that they are garnishing me yet again.  I don't see why they won't, they have done it before.  I need to make sure that does not happen.  Times are bad enough on a full paycheck, let alone a garnished one.  I am hoping that the attorney does not charge too much to get this figured out and if we end up going to court hopefully I will win, and his fees can be recovered.

Message 10 of 16
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