Student loan with Allied Interstate

How long ago did you stop paying on the loan? I know that these types of loans can accrue a lot of interest and possibly penalties if you stop making the payments, so maybe that is why the amount Allied claim you owe is so much higher than the amount the loan was for.

Send Allied a debt validation letter via certified mail/return receipt requested so you will have proof that the letter was received. You can find a template here...... http://www.debtconsolidationcare.com/letters/sample6.html

It would be advisable to not give Allied your checking account information, because even though they may agree to a payment arrangement verbally, that doesn't mean they will honor it. You run the risk of them taking out more than what you agreed to, or more frequently than you agreed to.

Also include in the letter, a request to cease and desist all contact to you by telephone and state that you want all future communication sent to you in writing via USPS mail. If they continue to call, they will be in violation of fdcpa regulations and you can file a complaint.

If after you know that Allied have received your letter, and you receive no written response, check your credit reports to make sure they have not reported anything derogatory/negative, which could damage your credit. If anything does appear, dispute the info with the credit bureaus, and check into filing a complaint as per FDCPA regulations. If a collection agency does not provide you with validation that they are able to collect one one of your debts, and a thorough breakdown of what they claim you owe, and then post negative info. regarding this debt on your credit reports, you can sue them for violating the Fair Debt & Collection Practices Act.

Also remember, if this debt no longer shows on your credit report, and you start paying on it after all of these years, the account will be re-aged because of the recent activity, and will remain on your credit report for 7 more years.

It is very easy for a $9k loan to very quickly become $25K. With interest, late fees and then the default collection fees of up to 25% it adds up very quickly. Allied can supply you with a breakdown of your fees and costs.

Also, I do not recommend sending a C&D to any student loan CA, particularly when they know where you work. This is an invitation to immdiately submit you for Admin Wage Garnishment, which does not require a court order. They will simply use the law to take 15% of you disposable wages. Student loans are completely different animals to normal consumer loans.

FYI...Allied does not report to the CBR the whole issue about posting is moot. Also recent activity on on a defaulted account will not and cannot cause re-aging. After you default, the guarantor can only report for 7 years post default. HOWEVE$R, if you loan is thru a FFELP lender and it is subrogated by the USDOE, the reporting cycle will start from scratch all over again.