Coll. Agency for Direct Loans

[nibanike]

I defaulted on student loans many moons ago. About 2-1/2 years ago, I made a payment agreement with a CA. Each month since that time, I've mailed a check for the same amount as agreed to the Dept. of Ed.'s processing center in Texas. Each month, I get a bill showing the previous month's payment and the same amount due for the following month. Every single payment has been made on time.

 

The CA has a limited C&D on file (basically stating that they are only to contact me via US Mail--no phone calls). Over the past couple months, they seem to "conveniently" forgotten that this is the only way they are to contact me, and leave voice mails. The one day that I was feeling sassy and actually picked up the phone, the CA said that I never rehabbed, that I only did a "temporary" payment agreement. Funny thing is--the gov't sends the bill, and as I said, I pay that amount, but the CA wants more (obviously, the more they collect, the better their commission).

 

I don't believe that they can violate the FDCPA as a private collection agency contracted to the government. Am I correct in saying that they have to adhere to the FDCPA? They seem to think that they are beyond reproach? I don't want to rock the boat too much, because these loans haven't appeared on my credit reports for years! I wouldn't be stressing so much, but I don't want them to poison my credit reports.

[LynnInMN]

Any payment arrangements made by a collection agency are temporary on defaults. Were they calling to get you see if you want to rehab??? Is your payment high enough to qualify for rehab?

 

The letter series we were given by the DOE was very limited. We were not permitted to send letters personalized to each circumstance. Also, we could not refer a borrower on for rehab without the borrowers authorization.

 

 

Yes they are governed by FDCPA.