CCA - Out of the Blue

[KewlKitti]

(I originally posted this in the Credit Forum but was recommended to post here instead - I just copied and pasted my original post)

 

It's been a long time since I needed advice from you all here.

 

I have a "First Demand Notice" from CCA (Collection Company of America) for a student loan never paid way back in 1980. I just got the notice TODAY altho it is dated the last week of April, 2006.

 

Back in my divorce in 1992 I had made arrangements with my ex-husband for him to pay this bill (we split quite a few of our bills) and obviously he never paid it. I have moved quite a number of times since then and I see that they have finally found me.

 

I have no idea if it's on my credit report. I haven't pulled a report in forever and a day, but since this is the first notice, I imagine there is something I can do?

 

The balance is OUTRAGEOUS for a very small loan. Is there a way I can get these people off my back and make arrangements with the Dept of Education themselves? I have no problem paying these people, but not thru a collection agency.

 

Any advice would be appreciated.

 

KK

[LynnInMN]

(I originally posted this in the Credit Forum but was recommended to post here instead - I just copied and pasted my original post)

 

It's been a long time since I needed advice from you all here.

 

I have a "First Demand Notice" from CCA (Collection Company of America) for a student loan never paid way back in 1980. I just got the notice TODAY altho it is dated the last week of April, 2006.

 

You have moved. Obviously they couldnt reach you. What type of loan is this??

 

Back in my divorce in 1992 I had made arrangements with my ex-husband for him to pay this bill (we split quite a few of our bills) and obviously he never paid it. I have moved quite a number of times since then and I see that they have finally found me.

 

I have no idea if it's on my credit report. I haven't pulled a report in forever and a day, but since this is the first notice, I imagine there is something I can do?

Probably not. If it is a federally insured loan in default, you are stuck with it.

 

 

The balance is OUTRAGEOUS for a very small loan. Is there a way I can get these people off my back and make arrangements with the Dept of Education themselves? I have no problem paying these people, but not thru a collection agency.

Nope. If the account is assigned to a CA, you must deal with the CA. Student loans are very different from normal credit card debts. You don't have a choice. Word of warning...it you cease a CA for a federally insured loan, you will probably find your wages garnished asap.

 

The balance. Legally you are responsible for principal, interest and all collection costs. The government will not honor your divorce decree....it is not enforeable. You would have to take your ex back to court.

 

Any advice would be appreciated.

 

KK

[KewlKitti]

What type of loan is this??

 

It's a student loan, as far as the "type" of student loan, I really have no idea. I was 17 years old, didn't know the first thing about credit and my sister filled out the paperwork for me and I just signed it.

 

Word of warning...it you cease a CA for a federally insured loan, you will probably find your wages garnished asap.

 

I really don't understand what this means, if I "cease"? I would like to just DV this CA and deal directly with the Dept of Ed

 

you will probably find your wages garnished asap.

 

I don't work, I am a SAHM.

 

Legally you are responsible for principal, interest and all collection costs.

 

I figured I would be responsible. I know I need to pay it back, I just don't want to deal with a CA if I could deal directly with the Dept of Ed - I have read in different places that they have a rehab program? That is what I am trying to figure out. As far as my ex? I have NO idea where he is. Even his family doesn't know (this isn't the first thing I found out he didn't pay) - so going back to him is useless anyway.

 

I just want to make arrangements to pay this.

 

KK

[LynnInMN]

If you want to rehab, you will have to contact the CA handling the loan. They can set it up for you. Working with the DOE is not an option.

[KewlKitti]

Ok, sorry for seeming a bit ignorant about this, but I have heard time and time again that you CANNOT deal with a CA. Is this different when it's a CA that represents the DOE? When I go to the DOE website they have a section about rehab and it doesn't say anything about dealing with the CA. Am I looking in the wrong area? I would hate to deal with the CA and then it haunts me the rest of my life. With rehab at least you have a chance that things will get better sooner if you stick to your arrangements.

 

I really appreciate you working with me on this.

 

KK

[LynnInMN]

Ok, sorry for seeming a bit ignorant about this, but I have heard time and time again that you CANNOT deal with a CA.

Where did you hear this?? Maybe with credit cards but student loans are another ball of wax.

 

Is this different when it's a CA that represents the DOE? When I go to the DOE website they have a section about rehab and it doesn't say anything about dealing with the CA.

Collection Agencies www.ed.gov/offices/OSFAP/DCS/faqs.html

 

 

This information is provided only for student loan borrowers with loans held by the U.S. Department of Education. If your loan is held by a guaranty agency, please see Contacting Us for repayment information.

 

The Department of Education currently contracts with several collection agencies to administer many of the collection activities of our accounts. Only those accounts which fail to establish and adhere to a repayment arrangement are subject to assignment to a collection agency by the Department's Debt Collection Service. Those accounts assigned to a collection agency are assessed additional collection costs.

 

Collection agency employees are trained to comply with the terms of the Fair Debt Collection Practices Act which governs collection practices by debt collectors. When Debt Collection Service is notified in writing of complaints concerning our collection agencies, we review the evidence and take the necessary action to correct the situation.

 

You may contact the collection agency which your account may have been assigned to at the address or phone number below for questions concerning loan repayment and loan consolidation, to change your mailing address, or for balance information. If you do not know which collection agency your account may have been assigned to, you may contact Debt Collection Service for the agency's address and telephone number.

 

 

Am I looking in the wrong area? I would hate to deal with the CA and then it haunts me the rest of my life. With rehab at least you have a chance that things will get better sooner if you stick to your arrangements.

 

I really appreciate you working with me on this.

 

KK

[KewlKitti]

Thank you, that helps!

 

KK