CC will not send a letter or take anything but bank and routing #'s!

[tw0st3p]

So I have a defaulted student loan. Just got off the phone with the collection agency and they said they would enroll me in the rehab program. Their terms were 1000 down and 50/month for 9 months, then it would be repurchased and I could work out new payment options. This is all well and good and within my budget, however she said that I would not be enrolled in the program until I made a payment and tried to get my bank account and routing numbers. I balked at this and said I would prefer to get a letter/bill/invoice or some sort of documentation of the agreement, and then I would setup automatic bill pay through my bank to schedule an overnight check every month for 9 months.

 

She said this would not work, but that they could take payment with a debit card. I prefer to automate this so that I do not need to worry about calling in on the correct day to make a payment. I also do not want to give my bank info out.

 

I have done a lot of searching on here and the two main things I take away are to get documentation of everything, and not give out bank info. I realize that the two options they presented gives them the ability to get their money regardless of what's in my account. I said I would call back later with the bank info just to get off the phone and do some research.

 

Should I stick to my guns and get documentation of the terms first and then say it's a no go unless they take automatic checks? According to the lady I spoke with I cannot enroll in the rehab program until I make a payment, and they don't want to take my desired form of payment? What the hell. Anyone have any ideas of what my REAL options are, not what they prefer?

[snowpuppy]

It's illegal for them to require this for payments, even in default. They should also be sending you their terms of agreement.

 

If they are a Dept of Ed collector (they have a contract with the Dept) then call them back and tell them you are filing a complaint with the Dept, The Ombudsman and then calling your Senators.

 

They'll see the wisdom.

 

http://www.studentloanborrowerassistance.org/collections/collection-agencies/

Edited July 31, 2012 by snowpuppy

[tw0st3p]

Thanks for the reply. If I am able to get the terms of the rehab in writing (#of months, amount of monthly payments, total owed, etc.) should I just give them the routing and bank account of a secondary checking account and make sure there is no more money in there than is necessary to pay off the loans and let them do their thing?

 

I have been reading on here that my current CA (NCO) has jacked up the monthly payments without warning and added collection fees at the end of the rehab.

[SloanHelper]

Thanks for the reply. If I am able to get the terms of the rehab in writing (#of months, amount of monthly payments, total owed, etc.) should I just give them the routing and bank account of a secondary checking account and make sure there is no more money in there than is necessary to pay off the loans and let them do their thing?

 

I have been reading on here that my current CA (NCO) has jacked up the monthly payments without warning and added collection fees at the end of the rehab.

 

Sometimes I really loose hope that I am even helping.....

 

All payments, regardless if you're setting up with a collection agency, are processed by the United States Department of Education. The United States Government!!!! This is what baffles me, people expect the Government to give them money to go to school, then when it is time to repay or they do not live up to their obligation they all of a sudden become weary of the process and do not trust the government???? This I will never personally understand.

 

The collection agency's are in contract with the DOE, they are heavily regulated and watched. It is perfectly fine to give your bank info to them, because the DOE will not and cannot "wipe out" your bank account or take a payment that you do not authorize.

 

Yes you can request a letter, but at that point you are just buying/wasting time.

 

P.S. Your down payment,monthly payment ratio could be different

[tw0st3p]

sloanhelper, is that true even for a non-federal student loan? The originator was the Oklahoma Student Loan Authority. I obviously want to get this resolved as this is one of the last negative's on my report, however I just want to cover my bases and I have read to never give out bank account/routing #'s.

[SloanHelper]

Yes... It is true

 

Here is the best way of you have reserves. Go to Walmart buy a pre paid debit card and then give them the credit card info, then there is no attachment to your bank account.

 

Also you can just go online and pay at www.myeddebt.com

 

Make sure u are on program if u pay online, so as your payments are applied to program fr you rather than a blind payment.

 

Don't pay the down payment *hint* *hint*