Threats from DCS for defaulted student loan debt
Date: Thu, 04/08/2010 - 21:14
Threats from DCS for defaulted student loan debt
Turns out only my federal loans were on forebearance, not my private loans, hence the default. Now I have this collection agency calling me and telling me that i owe them this money and i have to pay it by thursday (my initial call from them was on tuesday). If i had the money i would pay it but obviously the point of filing bankruptcy is due to no money! UGH. Anyhow...now the woman said that i could come back and make an offer and we could negotiate a payment plan but it had to be done by thursday (today). I called and told her we could pay $100.00 a month until the loan was payed off.
They agreed. She then told me that i needed to pay right then and there. My husband wanted something in writing from them stating what we had agreed to. I don't think this was an unreasonable request. The woman refused and said we had to pay first and then she would send us out a letter after the fact. I just don't really trust these people and don't want to give them my bank account information.
Anyhow...so my husband and i were both on the phone and asked to speak with her manager. He got on the phone and i explained the situation. He said they couldn't do such a thing (send us a letter or fax) and that we had to pay right then and there or this agreement would be no longer valid. I refused to pay until i got something in the mail from them and he now says that "you will suffer the consequences if you don't pay in full by 4:30pm today". What does that mean. I am willing to pay this on a reasonable plan but don't have $6000 laying around. Can they garnish my wages? Can they take money from my husband? He's not on the loan? I just am completely overwhelmed and not sure what to do. Any advice would be appreciated. Thank you.
Ok...for starters....filing bankruptcy will in a lot of cases ca
Ok...for starters....filing bankruptcy will in a lot of cases cause a private loan to default. When you default, your default clause come into pay...when you signed the note you agreed to pay your balance in full on demand...this is standard with all student loans, private and federal.
Ok...according to your private note, you owe $55k in privates. You offering $100 per month until paid in full. Well at 7% (guessing) interest, your interest is $320 per month...simple math means you will never pay it off at $100 per month. Student loans never put pay arrangements in writing because it would change the terms of your prom note. They aint gonna do that. Standard contract law...the lender is hardly being unreasonable...even a 20 year term on a default is over $425 per month.
Citibank do actively sue private loans...even if you are making payments. And they do actively garnish.
Did your attorney not explain any of the possible consequences to you?
Hi Soap Lady... Thank you for your response. No our attorney di
Hi Soap Lady...
Thank you for your response. No our attorney did not explain these consequences to us :(
I understand that the note causes the loan to be paid in full. DCS only has 5800 of our loans so they did agree at 100/month but then the guy got very upset and said that we will suffer. I am just wondering what to do now...
can i call them and try to renegotiate this or is it a done deal and they will garnish? What should we do? or what can we do?
No...with the bankruptcy you will not qualify for private loan c
No...with the bankruptcy you will not qualify for private loan consolidation.
DCS is a collection agency....they cannot sue you because they are not attornies. The account would have to forwarded on and you would have to be taken to court first before anyone could garnish you.
What is happening with your other loans?
Thanks again for your reply. How do you know so much about all
Thanks again for your reply. How do you know so much about all of this? It just is so overwhelming!
Anyhow....when we filed BK...Citibank sent my private loans out to guarantor agencies. The first one is United Guaranty. They hold loans totaling 12,247 and another one for 2,000.00.
I talked to United Guaranty and he said that DCS is the company they use to collect their debt. For some reason the numbers don't add up and DCS states they have 2 loans and the total amount is $5793.47 for both loans.
My other 2 private loans are with Tuitiion Guard/general revenue. They total $20, 649 and $21,421.00.
DCS states they sent out a letter to us on March 1st. We never received one and unfortunately for us they probably did send out a letter but we live in a new neighborhood and our mail gets mixed up ALL the time.
I have not heard from Tuition Guard yet. I got their number from Citibank but haven't made a call yet as i am not sure what to do. I know these have to get paid but i hope they will work a plan with us.
Can they take money from my husband? He has some separate accounts so i wasn't sure if they could get it from him?
My Federal loans are under bankruptcy forebearance with Citibank. I called and they still haven't received our bankruptcy discharge yet so they haven't been taken out of forebearance yet.
What are my options here? What can i do? Will DCS be willing to work with us? The guy on the phone was not very willing. Should we hire a lawyer? And if so what kind of lawyer? My in laws are willing to hire us a lawyer if needed.
Any help would be appreciated! Thank you in advance!
A lawyer will cost you money and get you nowhere. You have a pr
A lawyer will cost you money and get you nowhere. You have a prom note which outlines your agreement. An attorney cannot rewrite it or change the terms. DCS is not required to work with you.
so basically there is nothing i can do at this point?
so basically there is nothing i can do at this point?
Rework your budget...find a second job...all you can do at this
Rework your budget...find a second job...all you can do at this point is increase your income.