Debt Collector Letter

[inapickle]

I apologize in advance if this has been covered.

 

My partner consolidated loans around 6yrs and we have been making payments on time every month without fail, they keep dropping rates for example when we hit certain number of payment but I digress. Recently we got a number of calls and a letter from a CA stating that a loan was unpaid from over 8yrs ago. It looks like it was around 3k but has grown to about 7k.

 

I contacted the school perkins admins and they informed me that the loan wasnt a perkins, so couldnt be rehabbed, it is actually a private loan from the school.

 

Credit report shows clear, i have about 2wks to send a dispute letter to the CA but the school says i can deal with them (which i intend to).

 

I have a couple of questions as I dont really know the school loan system:

 

1. Can a private loan be re-habbed? from what ive read no.

2. The CA demands full payment however I couldnt do that but I can make payments; do they have to accept that?

3. If they dont accept payments will they just garnish wages? can they only garnish my partners?

4. Can any of the late fees, collection fees etc be removed? from what I read they cant for perkins loans?

5. Should I send a C&D / dispute letter to the CA? would that conflict with my dealing with the school?

6. I have 30 days to reply or they state the debt is valid; if they report anything to credit bureaus before the 30 days is that a fine offense?

 

Thanks in advance.

Edited June 24, 2009 by inapickle

[LynnInMN]

I apologize in advance if this has been covered.

 

My partner consolidated loans around 6yrs and we have been making payments on time every month without fail, they keep dropping rates for example when we hit certain number of payment but I digress. Recently we got a number of calls and a letter from a CA stating that a loan was unpaid from over 8yrs ago. It looks like it was around 3k but has grown to about 7k.

 

I contacted the school perkins admins and they informed me that the loan wasnt a perkins, so couldnt be rehabbed, it is actually a private loan from the school.

 

Credit report shows clear, i have about 2wks to send a dispute letter to the CA but the school says i can deal with them (which i intend to).

 

I have a couple of questions as I dont really know the school loan system:

 

1. Can a private loan be re-habbed? from what ive read no.

No

2. The CA demands full payment however I couldnt do that but I can make payments; do they have to accept that?

The private loan agreement was for balance in full on demand in the case of default. Most will accept payments.

3. If they dont accept payments will they just garnish wages? can they only garnish my partners?

They could garnish if it is a state school.....otherwise they would have to seek a judgement first.

4. Can any of the late fees, collection fees etc be removed? from what I read they cant for perkins loans?

Only if the account is being settled on.

5. Should I send a C&D / dispute letter to the CA? would that conflict with my dealing with the school?

Think someone at the school gave you bad info. CA's are hired under contract which means that school is not suppose to get involved...if the school does get involved without cause, the CA still gets paid. C&Ding them could without reason or cause could end up causing problems.

6. I have 30 days to reply or they state the debt is valid; if they report anything to credit bureaus before the 30 days is that a fine offense?

 

Thanks in advance.