College tuition debt sent to CA

[Bsmiles]

This is my first post.

 

I have been in debt to Penn State University for the tuition amount of $5545.40 (from 2007). PSU sold my debt to a CA called Eastern Revenue after two years and the school will not release my transcripts until I pay the CA in full. Should I attempt to send the money to the school directly even though Penn State insists that I deal only with the CA?

 

I have already contacted the agency because I am ready to pay 50% of the amount I owe but dealing with the agency has been a headache. This CA is acting sneaky/ ridiculous and won't send me documentation in writing stating the amount I agreed to pay and that they will notify my college.

 

1. Should I have completed the Validation process even though Penn State has confirmed that this was the agency my acct was sold to? (I know this debt amt is mine and correct.)

 

2. Should I still send the CA a Validation Letter after I have already contacted them and verbally discussed paying 50%? (I was in a hurry so that I will be in time to register for my transfer school.)

 

3. Also, can the collection agency hold me to our verbal agreement of paying 50% + add'l payment arrangements even though they are not sending me the written documentation of our agreement?

 

The agent is being so sneaky that I'm having doubts about their business practices and throwing $5545.40 at sharks is a scary thought. I don't want to regret sending the full amt because the CA has no incentive to notify Penn State to release my transcripts unless they've agreed to do so in writing.

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[ProcessServer]

This is my first post.

 

I have been in debt to Penn State University for the tuition amount of $5545.40 (from 2007). PSU sold my debt to a CA called Eastern Revenue after two years and the school will not release my transcripts until I pay the CA in full. Should I attempt to send the money to the school directly even though Penn State insists that I deal only with the CA?

 

I have already contacted the agency because I am ready to pay 50% of the amount I owe but dealing with the agency has been a headache. This CA is acting sneaky/ ridiculous and won't send me documentation in writing stating the amount I agreed to pay and that they will notify my college.

 

1. Should I have completed the Validation process even though Penn State has confirmed that this was the agency my acct was sold to? (I know this debt amt is mine and correct.)

 

2. Should I still send the CA a Validation Letter after I have already contacted them and verbally discussed paying 50%? (I was in a hurry so that I will be in time to register for my transfer school.)

 

3. Also, can the collection agency hold me to our verbal agreement of paying 50% + add'l payment arrangements even though they are not sending me the written documentation of our agreement?

 

The agent is being so sneaky that I'm having doubts about their business practices and throwing $5545.40 at sharks is a scary thought. I don't want to regret sending the full amt because the CA has no incentive to notify Penn State to release my transcripts unless they've agreed to do so in writing.

 

 

Student loans are Federal money. The debt NEVER goes away and I've never heard of any "50% off" deals. If they said that verbally they are likely lying to get you to make a payment. But, since it's Federal money, you'll pay one way or another

[Niteraven]

The fact that YOU feel they are acting sneaky is reason enough NOT to proceed further unless ALL communication is in writng . You need documentation for a paper trail.

 

What I would do is this:

I would write a lestter to Penn State asking for them to validate your account info

dates/ charges/payments etc. Ask them to provide the present owner if its not them and who is the party to pay in the event you want to satisfy this account.

 

That will give you their documentation ...

 

Then you send a DV to the CA ..

A simple DV - referrence the phone contact (no details just as per our phone conversation of XXX)

State you want a full accounting of this alleged debt.

Include a LIMITED C&D .. no calls to work or home mail contact only.

Do not sign it

Send it CMRRR

 

And don't give them your SSN - chances are they may already have it since this is a SL but in case they don't Im of the opinion of not giving it until absolutely necessary.

 

Look in the Sample Letters Forum (board index page) for examples

 

 

In this situation, your verbal agreement wasn't put on paper and therefor IMO not a binding agreement. Others here may have a different POV. But for now Id say no there is no agreement. They never followed up with any paperwork right?

 

If you're going to settle this for 50% (Im not sure if that's even something that can happen)you would want any remaining balance never to be sold/transferred/assigned to anyone ever for collection. That needs to be included in any agreement.

Also try for them never to credit report ...

 

All communications need to be in writing and any aggreements need to be in writing before any money changes hands.

 

Im thinking they may just want you to start making payments and are using whatever tactics they can to accomplich that. Be careful.

Edited November 20, 2010 by Niteraven

[Bsmiles]

Thanks Niteraven I will do what you have suggested.

 

Thanks ProcessServer- the debt isn't a federal loan. It is the remaining balance that I had to pay the university that wasn't covered by financial aid loans. I plan to pay the school in full through the CA b/c Penn State insists that the full balance be paid for them to release my transcripts. I would love to be able to settle my debt for 25-50% of what I owe, but Penn State says they won't accept that.

 

My university says that the CA bought my debt for the full amount that I owe- $5545.40. I doubt this is even true.

 

After I complete the process of getting all this documentation in writing, and i am ready to mail the payment, should I send the money Certified RR? I'm pretty skeptical about wiring a moneygram b/c moneygram is what the CA kept suggesting.

 

Thanks for you're help. Have a good holiday.

[Niteraven]

Send the funds in the form of a certified check. That way you have documented proof the funds were paid.

Send it CMRRR so you have proof of mailing and receipt.

 

May be overkill but IMO you always have to assume something going wrong.

*I* like having all my bases covered.

 

 

And you're right I doubt highly the debt was purchased for the full amount.Normally it's bundled into a portfolio and put up for sale/bid .. The buyer usually paying pennies on the dollar.

 

They are probably suggesting the moneygram so they don't have to use time and bookkeeping to process the check. You may have to wait a awhile for them to clear their books due to the check then.

However *I* would send a check just the same. I like tangiable proof and the moneygram IMO relies on too many outside things to complete. In this situation I would opt to pay by check. YMMV..

[Bsmiles]

Thanks HappyMinion.

 

 

[Gronnie]

If this is school debt, and you know the agency and the amount are correct, then you aren't going to get very far wasting time with debt validation letters, refusing to use the phone, etc. Are you sure this debt was sold and not just placed on contigency? If it is just placed with the agency then their incentive to notify the school of payments is that they don't lose their contract.

[Bsmiles]

Well it turns out that my university accepted my full payment to them, directly, contrary to originally telling me to send my payment to the CA. I paid the University on Dec 1, 2010.

 

Now I think that I better dispute with the CA.

 

This CA has made one inquiry on my Cred. Report, but has not officially recorded my debt as a "negative acct."

I have paid my debt in full to the school so is it appropriate to send off a Validation Letter now, before they report to the 3 CRA's?

 

What should I include in this letter?