Collection agency lied

The CA did not lie....they more than likely did not know. When I was collecting student loans, we were never told that the accounts had judgments filed against them. It only came up when the rehab papers were submitted.

You cannot make any stipulations. Your payment when it arrives is applied to the collection fees first, then interest, and then principal. And the CA doesnt apply the payments...the guarantor does.

Have you ask for a payment history for your guarantor? The CA should be able to pull it or request it. You want to be specific that you get a GUARANTOR payment history...not a print screen from the CA.

If you quit paying , you will simply find your wages being garnished, either thru admin wage garnishment at 15% which doesnt require a court order or 25% due to the judgement.

You are not lining the pocket of the CA. The CA earns at most, 9% in collection fees. The money is going to the DOE.

Thanks soaplady-- but I actually have a recording, obtained WITH PERMISSION, of the initial phone conversation when we first set up the rehab payment plan where I was SPECIFICALLY told that I was eligible ("Upon reviewing your account, we see that YOU ARE indeed eligible for rehab", etc.). Then when the time passed and I made my required number of payments, the same agent totally recanted his story. He said, "I told you specifically at that time that you weren't eligible if it was in judgment..." I replayed the conversation for him where he had said originally that I was eligible even with a judgment. In that initial conversation, I asked if my judgment would preclude me from rehabbing the loan. Again, he said that it didn't matter, and that I could rehab a "judgment loan". Only after I paid more than I was supposed to, on time every time, and seeing the amount due staying about the same and even going up a little, was I told about my ineligibility. So yeah, the collector lied. I'm not surprised, really. The last group that held this loan threatened me with jail if I didn't pay (a violation of fdcpa), and another group continued to call me at work AND after hours several times a day, despite several C&D requests in writing.

I have documentation of every thin dime that I sent to them, both before the rehab agreement and up to now.

At this point, I'm sorely tempted to "go underground" and work for cash and simply stash my money in untouchable accounts, or just have my checks handed over to me whereby I cash them and deal only in cash (no bank accounts)... or simply work on a temp basis and then change jobs before the garnishment people can catch up. Screw it-- I paid the loan amount off by now, and they can bite my rear end.

Let's see... $150 x 12 x 10 years= $18000. My original loan was for $4700. They got their money. It's not my fault that they're doing funny math and not applying the funds as they're supposed to. Even if interest is first to be paid, how is it that NO ONE can give me a straight answer on the mysterious "fees and costs" that keep getting added on, at a higher rate than the interest?

And no, the money is NOT going to DOE-- it's going to "fees and costs" imposed by the CA. Out of every $150 I send, none goes to principal. That stays the same. Interest goes down maybe $3. "Fees and costs" continue to creep up. It costs them 42 cents to mail me my monthly statement and maybe 50 cents to print it off the computer. So where is the other $146 going? Do you (the CA) mean to tell me that my file's drawer space costs almost $150/month?? I call bullspit.

Sorry, I paid... four times over.

The fees and costs are imposed by federal law and are assessed to your account BY the the DOE, not the CA. The CA forwards payments to the DOE and they are sent there commision, about 9% monthly. All accounting is done by the DOE,not the CA.

Sure, go underground. Need social security or social security disability? They will garnish that too.

Get the payment history from the DOE. You will get a better idea of where your payments are going.

You got a stupid collector. It probably was not a lie...he probably didnt know any better. However you knew it was a judgement account and should have looked it up yourself.

Actually... I've lived in the same place for the past 17 years. I get the "We got your money now we're laughing all the way to the bank" notices every month when they get my payment-- so why did I never get any notice of this thing going to judgment BEFORE it got to that point? Because, said the CA, no such notice is required. In other words, they were able to go behind the scenes and slip a judgment in.

How did I find out about the judgment? I found out when my income tax refund went back into the government's pocket and I got an offset letter instead of the check I was expecting. That was when I immediately contacted the CA and the whole mess started. At that point, I was paying something-- just not as much as I am now since I couldn't afford it.

So now they just continue to take my money, increase my debt and essentially extort money out of me every month while I have no hope of ever paying this thing off. And funny how the "fees and costs" also increased at about the same time my payment amounts did.

Another thing-- I'm making payments. I'm doing so on a voluntary basis. I'm paying a reasonable amount every month. How then can the IRS take my refund for the defaulted loan (which would then be an involuntary payment) if I'm making voluntary payments? I say that the payments are voluntary, as I make them even though they are doing nothing to favorably change the status of the loan or reduce the balance (since it stays the same regardless of my payment).

I can easily quit paying, and the status won't change a whit. I'm paying, yet I'm still in default. If I quit paying, I'm still in default, but I can save myself $1800 a year and put that into an exempt account where I can earn interest. That can be my "social security" along with the rest of my retirement, savings and investment accounts and my pension which I will receive at retirement, since it's highly unlikely that there will even BE any Social Security left by the time I come of age. So that's hardly a consideration at this point. Ah yes... yet another payment that I make to the government for zero benefit.

Disability?? I pay for LT Disability insurance. It pays better than the government's Ponzi scheme should I ever have to use it, and it covers me through age 65 at 60% of my salary, tax free.

I learned a long time ago not to rely on the government to care for me. I saw how they did my dad (a disabled WW2 veteran) and my brother's family after he died in Afghanistan. No thank you.

But I digress.

They dont need a judgement to take either your taxes or garnish your wages.

The point of the matter is, you borrowed the money and defaulted. You agreed when you signed the note that you understood the terms and responsiblities. If you learned a long time ago not to rely on the the government not to care for you, why did you borrow the money??? You didnt bother to enter into voluntary repayment until AFTER by seized your taxes and now your moaning about the fees that you agreed to pay.

I would think there would be SOMETHING you can do, since you DO have proof that you are eligible. I had a friend of mine in a similiar situation. To make a long story short ( in HER case), she went to her State Rep and actually got things taken care of from them. Keep all of your paperwork and proof of payments, etc.

He is not eligible per federal law. Judgement accounts cannot be reinsured so no lender is going to pick it up.

Quote:

The collector screwed up, thinking it was eligible with the judgement in place.

Heh-- if that were the case and I knew that the d**N gubmint was going to sieze my return, I'd have just said, eff it-- take it, and not sent in another plug nickel.

Oh, and I just got my receipt for my last monthly auto-payment (bank draft, not car). So why has my balance gone up instead of down again, and WHY the EFF do I keep getting the runaround from CA to gov't agency an dback again every time I request a payment record. "No one" has it.

Does anyone have a mailing address or phone number for No One?

After you tax return is seized, it takes time to transfer the funds the agency it was seized for. It does not happen overnight. Usually a couple of weeks.

Have you simple asked for a client payment history like I have suggested before? With DOE clients I could print it out immediately. For other guarantors, our client services department got them for us within a couple of days. Do you know who your guarantor is??