I need to rehab several S/L's. In the past I have given my checking account number to the C/A's and read time n time again on the board that that is HUGE NO NO!!!

I am going to contact these C/A's before they garnish my wages, but how do I make payment if they tell me that they MUST HAVE a checking account or savings account to proceed?

Thanks

[quote name='millionariess2' date='Jul 30 2006, 10:59 PM' post='1685772']
[quote name='ZicMan' post='1685631' date='Jul 30 2006, 09:37 PM']
I need to rehab several S/L's. In the past I have given my checking account number to the C/A's and read time n time again on the board that that is HUGE NO NO!!!

I am going to contact these C/A's before they garnish my wages, but how do I make payment if they tell me that they MUST HAVE a checking account or savings account to proceed?

Thanks
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they threatened me with the same; and then when I was going to give them my Debit Card number, all of a sudden they couldn't even do the thing because my account had a judgement against it and for me to call Dept of Ed. Dept of Ed said to call GC services (the CA) so next thing I know, I get a letter in the mail that says my payment of $113 should be in their office by the 28th of every month. Did not set up anything over the phone. so who knows. If i were you, I would cancel the accounts and send the payments by MONEY ORDER

Student loan contracts with CA and the guarantors and the DOE are very highly regulated. Personally when rehabbing, this is the only time I would recommend doing autodebit. It is safe...the guarantors and the DOE hold the CA's responsible to follow the FDCPA and cashing autodebits without authorization is a huge no no. I know on the rare occasion that our agency had a check slip thru (back then we had to deal with paper checks...now a days post dates are computerized and much easier to control) we had to refund the overpayment and all bank charges plus supply a letter to the debtor indicating our error. Cashing unauthorized debits can cause a CA to loose their contract, not to mention the legal ramifications.

Lynn's right -- there is rarely ever a problem (of course, nothing is fool proof, but that's just life in general!). You'll find that most of us here have set up auto debits for our SL rehabs/repayments and haven't had any problems. I wouldn't worry about it in this case (and only in this case!).

If you're still nervous, though, you can open a separate checking account and just fund it monthly with your payment. Just be ABSOLUTELY SURE that the money is there long before the due date that they're going to take the payment. If you're late with even one payment, you have to start the rehab payments over.

Hope this helps! Good luck

Thanks for the info!!!