DCS / Student Loan / Story / HELP
Date: Thu, 07/22/2010 - 13:30
DCS / Student Loan / Story / HELP
(NOTE: DCS is a collection agency. They do NOT hold our debt. The guarantor (ASA in our case) hired DCS to collect from us. Which is all legal)
- I called the person who signed the letter from DCS. I left 2 messages to which he responded the next day. He informed me that I had 2 days to pay the full balance or Wage Garnishment was going to start. Which is 15% of my wifes gross paycheck. He said that she will qualify for the Rehabilitation Program only if I was able to submit the following:
- Down Payment
- Financial information to ONLY include (pay, mortgage payment, car payment and cell phone payment) Nothing else would be considered in the formula to determine my payment structure to get back into the Rehabilitation Program.
- 2 family or friend references.
Unlike several posts I have found our DCS agent was not rude or disrespectful. He was a liar, he lied and/or mis-represented the truth as it relates to our guarantor (ASA) and what was/is avaliable to us. So this is what he did...
- He spoke to me about my wife's debt without her permisson verbal or written from her. Which is a violation of Fair Debt Collection Practices Act.
- He offered me 4 seperation solutions to pay back the debts. All of which were grossly unrealistic even if we had no debt. The best one was to place roughly a $1,700 down payment and make 9 months of payments at $415.
- I asked him if the $1,700 down payment went to the principle of the loan and he said "Yes!" (LIE NUMBER 1)
**I then did some research on DCS and reached out to the guarantor, ASA to gain more information**
TRUTH: Down payments goto their bonus's and management. ASA (the guarantor) explained to me that they (the guarantor) DO NOT see any money from downpayments. That is a function of DCS (or credit angencies in general) to get paid for their services. Guarantor's (ASA in our case) only get paid from the monthly payments.
It typically works out to 80% goes to interest/penalties and 20% goes to the collection agency. Nothing is paid to the principle.
**DOWN PAYMENTS ONLY GOTO THEIR BONUS'S AND MANAGEMENT OF DIRTBAG COLLECTION AGENCIES**
I found that DCS has an awful reputation amoung the blogisphere and people they have conducted business with regarding debt collections. Just google it.....you'll see.
The guarantor of my wifes loan (ASA) explained to me (after my wife gave them permission to speak with me) that we are eligable for the Rehabilitation Program of up to 1% of the total balance of our debt. Which means, we will need to pay 1% of the balance due for 6-9 months to get out of 'defualt status'. At that point they (ASA) will call back the collection from DCS and sell my wifes loan to legitimate company to set up payments.
This is my whole issue. The system of collections is counter intuitive with respect to Student Loans. Collection Agencies (like DCS) have ZERO motivation to resolve the matter with an individual. The bigger the down payment (lie or not) the bigger their bonus is. The bigger the monthly payment...the bigger their paycheck is. There is ZERO incentative to get a person on a payment plan. They make money on you fighting them. They want you to not pay...so they can garnish your wages and collect their 20%. The hope is that you cave in and send in a down payment.
CONCLUSION:
- I called the guarantor and informed them that DCS was not cooperating and being resistive to resolving this matter. I then detailed the lies and actions.
- The guarantor gave me the name of a manager and phone extension to which I called at DCS.
- I explained the lies FDCPA violation to the manager at DCS.
- The manager set me up on payment Rehabilitation Plan with a fraction of a downpayment.
- My wife will only be on this plan for 6 months.
Now my wife is paying .5% (yes, half of one percent) monthly payment with a very reasonable VERY LOW down payment.
- Fact is the initial contact with DCS is set-up to scare the crud out of you. To intimidate you and force you into doing something stupid ie: give them a down payment, references and bio information.
If you would like further information or HELP in dealing with this company please do NOT hesitate to email me at:EMAIL REMOVED PER TOS [EMAIL="betteroffnow@gmail.com"][/EMAIL]
fyi....permission is not needed to speak with a spouse For sta
fyi....permission is not needed to speak with a spouse
For starters, all guarantors require the balance in full on demand statement. ASA used to be a client at the agency I work for. Like all other student loans, your wife agreed to balance in full on demand when she signed her prom note.
Your so called truths are dead wrong. ASA assessed your wife collection fees when she defaulted of up to 24%. DCS earns about 7-9% in commisions. Per the Higher Education Act, payments go to fees, then interest then principal. With $50K in debt, nothing will go to principal for quite awhile....simple mathematics.
No down payment is required per the Higher Education Act to qualify for rehab...they can ask, but they cannot make it a condition of rehab.
Garnishment is 15% of disposable wages, not gross.
Soaplady is so wrong / you need permission to speak on the borro
Soaplady is so wrong / you need permission to speak on the borrowers behalf / 15% is taken from your wages and not disposable income / soaplady is absolutley 100% worng
Sorry John DOE....per the Higher Education Act it is 15% of disp
Sorry John DOE....per the Higher Education Act it is 15% of disposable wages....your wages after mandatory deductions. And a spouse IS authorized to speak on behalf of a spouse. Google it....and then come back and appologize.
Quote:Originally Posted by AnonymousSoaplady is so wrong / you n
Quote:
Originally Posted by Anonymous Soaplady is so wrong / you need permission to speak on the borrowers behalf / 15% is taken from your wages and not disposable income / soaplady is absolutley 100% worng |
really?care to present some proof as SOAPLADY worked with student loans for years.either present proof,or you are 100% wrong.
If DCS has moved forward with the 15% garnishment, is it possibl
If DCS has moved forward with the 15% garnishment, is it possible to have the garnishment lifted if you agree to voluntarily pay the same amount that is being garnished monthly?
Nope. You can appeal on the grounds of hardship but if you are
Nope. You can appeal on the grounds of hardship but if you are offering the same amount, there would be no hardship.
DCS Illegally 1. Refused to identify themselves 2. Repeatedly ca
DCS Illegally 1. Refused to identify themselves 2. Repeatedly called over and over. 3. Contacting roommates.
All of which is against the federal fair debt law.
Mind you I had made regular payments deducted out of an account for the debt however when they sell go out of business collection agencies do not keep those records. Hundreds of dollars were lost to these pirana which just went to pay for their commissions not the loan!! This is Big money, big business babes..
Now DCS has my account .. know this I was told by my institution that the loan does go back to the university eventually, which is then resold AGain. Stay in contact with your University Ombudsman ask him about this let them know you are in question as to who you were contacted by as there are a lot of rip off artists out there. They can let you know how long it has been with them. If it has been many years since you attended make sure what you owe can be verified .. because loans change hands multiple times with different collectors.
" Verify accuracy of the defaulted student loan. You may be surprised to find out that several entries leading to the default are not accurate. Student loans usually get transferred from one lender to another due to refinancing. If you find any discrepancies or transactions that were not legal, you can challenge the entries and have your loan reinstated." Then you can just pay the principle!!!! Ugh that is something no one well tell you..
Remember don't let them intimidate harass or abuse you. THEY ARE JUST A BUSINESS!!
remember the sallie may bail out ? They are a business working for the government however while they are given government sanctions they are also answerable to federal fair debt law.
If all else fails get a lawyer who specializes in student loan debt. I am currently proceeding with this process as I have all of my bank statements for the past 13 years
indicating payments. I am going over all the discrepancies. Besides the harassment I had to go through with these shady people I should be able to get my loan reinstated at the original principal minus any collection fees or commissions. Keep you informed!
DCS Illegally 1. Refused to identify themselves 2. Repeatedly ca
DCS Illegally 1. Refused to identify themselves 2. Repeatedly called over and over. 3. Contacting roommates.
All of which is against the federal fair debt law.
Mind you I had made regular payments deducted out of an account for the debt however when they sell go out of business collection agencies do not keep those records. Hundreds of dollars were lost to these pirana which just went to pay for their commissions not the loan!! This is Big money, big business babes..
Now DCS has my account .. know this I was told by my institution that the loan does go back to the university eventually, which is then resold AGain. Stay in contact with your University Ombudsman ask him about this let them know you are in question as to who you were contacted by as there are a lot of rip off artists out there. They can let you know how long it has been with them. If it has been many years since you attended make sure what you owe can be verified .. because loans change hands multiple times with different collectors.
" Verify accuracy of the defaulted student loan. You may be surprised to find out that several entries leading to the default are not accurate. Student loans usually get transferred from one lender to another due to refinancing. If you find any discrepancies or transactions that were not legal, you can challenge the entries and have your loan reinstated." Then you can just pay the principle!!!! Ugh that is something no one well tell you..
Remember don't let them intimidate harass or abuse you. THEY ARE JUST A BUSINESS!!
remember the sallie may bail out ? They are a business working for the government however while they are given government sanctions they are also answerable to federal fair debt law.
If all else fails get a lawyer who specializes in student loan debt. I am currently proceeding with this process as I have all of my bank statements for the past 13 years
indicating payments. I am going over all the discrepancies. Besides the harassment I had to go through with these shady people I should be able to get my loan reinstated at the original principal minus any collection fees or commissions. Keep you informed!
Sorry but you have ton of wrong information in the above post.
Sorry but you have ton of wrong information in the above post.
Loans do NOT go back to the University. The only loans handled by the schools themselves are Perkins loans...sallie mae almost never gets inolved unless they are just simply servicing. University ombudsman cannot help you much even then.
Student loans are NOT bought or sold. Default claims are made. And if there is an error, challenging it will NOT "reinstate" the loan without accrued interest.
DCS is a business. However commission on student loans are very low..8-10% and quite frankly I dont see DCS breaking the law like you say for your puny commission. It is a multi million dollar contract based on number of accounts placed.
DCS...refused to identify themselves? Technically when talking to a third party unless specifically asked, all they can say is "DCS". Calling over and over again? Well you are in default...expect the calls. Contacting roomates? Nothing illegal about that unless they disclose the debt.
DCS doesnt make up numbers or figures....they all come off the clients data base.
I appreciate everyone's honest input to this forum btw. It's ni
I appreciate everyone's honest input to this forum btw. It's nice to have a place to ask honest questions and receive answers in kind from those you feel have no benefit to manipulate or mislead you. THANKS!!! :)
My question: If I just (this month) received a letter that my wages are about to be garnished, is it too late to contact DCS and ask to enter into a Loan Rehabilitation? Is DCS under any legal imperative or obligation to offer me the Loan Rehabilitation Program? If not, do you believe they would at this point, & what would be the terms?
I am just very recently in a place where I am able to make reasonable payments on my student loans (abt $17,500 principle, fees $4000, interest $200; so grand total about $22,000), and was researching/preparing to contact the creditor on my next business day off work, and establish a repayment plan (preferably Rehabilitation to eventually erase default status). Of course, my lovely timing that as soon as I got to this point, I also got the "dreaded" DCS letter advising me that my wages are about to be garnished, 15% of disposable pay (abt $27k "disposable" after taxes, so sounds like they'd take about $340/month). This letter states that I failed to comply with the terms of the previous notice sent the month prior to exercise a right to contest? I do not know what all was stated in the prior letter (I have had an ongoing problem with not receiving all of my mail, getting mail/packages addressed to neighbors in my apartment complex, etc. So, I did not receive the letter they are referencing, but I do not doubt or contest that they sent it), but it basically sounds like they're saying the only way to stop garnishment now is to pay in full (which I of course am unable to do at this time, not even close with what I bring home).
I fully understand and accept that the debt is mine to pay, that it's my fault I didn't address it sooner. Having said that, I am ready & willing to take responsibility and pay asap, but am trying to figure out my best possible options.
However, I am concerned by some of the things I've read here & on other sites. If I understand correctly, I only get ONE shot at Rehabilitation to remove 'default' from my credit. So, if I call DCS and make a Rehabilitation agreement right now, would they STILL garnish 15% of my pay IN ADDITION to the amount I agree to pay for a 9-month repayment/Rehabilitation? If so, I feel I cannot handle that, and I'd be better off just letting the garnishment go into effect. However, if I can have a shot at a Rehabilitation plan that may help my credit and/or give me more affordable payments (is what I've read accurate that a 'typical' rehab amount is 1%, so for me abt $220/month, which I feel I could handle far better than the garnish of $340?) that STOPS garnishment (which the government website says it will, but it unclear on if the garnishment stops DURING the rehab or AFTER the final 9-month-payment is complete). I would greatly prefer to have that opportunity, even if not for less $, then at least for the chance to help my credit.
Can anyone please advise me on this, from their experiences? Especially those of you with experience in working in this field!
I am not very confrontational by nature, and I am really nervous to call DCS, which is honestly why I've not been in contact about my loan for so long. I really feel like I need to know going into a phone-call to DCS what my 'reasonable' options are, in order to 'stick to my guns' as it were and push for what will work best for my financial position (and best for the collection agent too, btw, b/c if they garnish so much I fear I may have to quit my job and move 4 hours away to move in with my parents, & then there'll be no money to garnish, lol!). Not paying is NOT what I want. I want to pay what I owe and get out of default as all of the government's defaulted-student-loan-pages lead me to believe that I can.
Sorry this was so long, and I thank anyone kindly for any guidance or light they can shed on my quandary!
Unfortunately more than likely they will not be willing to drop
Unfortunately more than likely they will not be willing to drop the garnishment to meet your financial circumstances. You shouldnt have waited for your next business day off...student loan contracts with collection agencies specify that evening hours (to 9pm) and evening hours be worked by the collectors. I used to work 1pm to 11pm central time zone so I would be available to west coast borrowers.
My best suggestion right now is to find a second job and suck it up for the next 9 months and complete the rehab. Your rehab is calculated on your disposable pay...your gross minus mandatory deductions (taxes, fica) and heath insurance. 401K and other voluntary deductions are not taken into the calculation. Cut the cable and any other expenses you can...pack a lunch each day and live on a budget. Moving home could end up costing you more with a broken lease and additional charges from that.