I think this is a general question:

My rehab agreement consists of two pages.
Page 1 states that I agree to make 9 consequtive monthly payments of x amount.
Page 2 is like an automatic debit agreement, and it wants my bank info.

Do I need to do auto debit? What if I send back page 2 with "n/a" on everything?

I have actually been making rehab payments for 2 years now, so I have already made my 9 payments.
I received this today and they say I need to fax it before tomorrow.

To make a long story short, they say they have never received my agreement, which I have proof of sending, and I was always too lazy to get around and sending a new one back.
I just figured "Hey! Who cares, I am paying it". Now I am sending it back becasue I want to clean up my credit, but I don't want to do auto debit.

If it helps this is with General Revenue.

Thanks!
V-Dude

Provide whatever information they ask for. It is perfectly safe to do auto debits with student loans. These agencies are government vendors and they are held responsible for their actions.

I know you know the in's and out to all this and I was thinking what you said might be the case.
Normally I would feel confident, but the reason I am a little gun shy is because I have to usually watch
these guys.

It started like this...
I received my original agreement, which was for a different amount than agreed. It was sent back, and they say they never recieved it. Each time I try talking maturely with them, they begin with threats of garnishment stating my payments are sporadic. In fact, I have always paid ontime with documented proof for 2 years. (It is not auto debited, but auto bill pay) Now they are stating that I am not sending anything back, but they are not sending the faxes. Also I am getting the "If this is not Mr. V-Dude please do not listen to this message..." voice mails.

I know they have different rules for student loans, so are these guys sketchy, or are they just doing their job?
What do you think?

Anyway, this is why I am a little gun shy.

V-Dude

V-Dude, are you dealing with Premiere Credit? The only reason I ask is that the form you received sounds like the same one they sent me.

In 1999, I set up to do auto-debit with a CA for the DOE and the very first month they wiped my account clean. For that reason alone, I will not do auto-debit with ANYONE, let alone a DOE CA.

I just sent back the first page with a note explaining that I do not give anyone access to my bank account information.

I do, however, mail my payments certified every month so I have proof that they were received, and I also keep a photocopy of the money order that I send. I have only sent 2 payments, but both were on time and the CA has not given me any problems about not using auto-debit.

My personal recommendation to people on the internet that tell nutso stories about their bank account being cleaned (something I have yet to have one single borrower actually tell me in the course of my servicing their account, btw) is make another bank account just for ACH. It's a lot cheaper and provides much better proof then the common scheme of sending money orders certified mail.

FYI: photocopies of un-cashed money orders prove nothing, and certified mail does not prove any valid payment was in the envelope. You would need to pay the issuer of the money order for a front and back copy of the cashed money order to prove anything.

Getting a DOE contract costs the CA's big bucks. When our agency got preliminary approval for the DOE contract, the owners had to do about $3 million in upgrades. Security systems, seperate work area, new computer systems. Emptying out someones bank account for a 10% commision is not very cost effective considering that type of violation could cost them the contract. Not to mention it would be so easy to sue for that type of violation.

JDB...that I can understand being wary of. But not student loan contracts. Student loan contracts have seperate accounting staff to process payments, it is not even something a collector would do.

I also want to add that my ex-husband worked for a major bank's check-processing department. It was not at all uncommon for a company to call and ask them to 'hold on' to a particular customer's check - not process it right away. Of course, this 'major bank' also came under fire when it was discovered they had shredded thousands of tax forms they were supposed to be processing for the IRS, so it could be just that they were an unscrupulous bank, but why take my chances? Sending it certified, I at least have proof of the DAY that it arrived.

In one of my earlier posts where I told of this happening you said the same thing. I was told by my bank at the time that once you give someone access to your bank account, you give them FULL access to the account. That most companies will only take out what they are authorized to take out, but any time I sign up for 'auto-debit' I put myself at risk for that. I did call the Attorney General's office in the state where they were located (I believe it was either Kansas or South Dakota) and filed a complaint. I did not know about the SL Ombudsman at that time, if one even existed then.

You and Cynic are 'in the business', so of course you are more in the know as to the workings of the student loan collection process. But just because you say something 'shouldn't' happen doesn't mean that it never happens. I sometimes wonder if I am being over-paranoid because of that one incident, but the bottom line to me is that, if it were to happen again, it would cause major problems for me - I'm a single mom and I live paycheck-to-paycheck. To lose a *whole* check (and I was told by the AG's office when I filed the complaint that even if they found the company at fault I would not get that money back, since it was applied to a legitimate debt) would be very hard to recover from. The utility companies and insurance agencies in Florida are unforgiving - you miss ONE payment, you're shut off or cancelled. I just can't afford that risk right now.

One of the things I find most valuable on these boards is hearing other peoples' experiences. I merely share what happened to me - I'm not sure why you and Cynic constantly feel the need to suggest that I am out of my mind and it could never have happened. I have no reason to lie about it.

V-dude, I havent read through this whole thread yet, but here's the deal. Go set up a checking account at your local CU. Fill out the form for rehab and include this info on your rehab letter. Go to the student loan website and make the down payment (or just mail the down payment if it is required) to the payment center for Dept of Education down in Texas. Do the same with another check for the 1st of nine payments needed to rehab. Note at the bottom what the check is for (down payment on one check and 1 or 9 to rehab student loan on the other)and include your SS#. Make several copies of these checks. Next day to TEXAS. They will post about 2 or 3 days later. Only deposit enough in your account for 1 payment to clear. Note what you are doing on the bottom of the rehab letter and next day it to the collection company. Do not fax anything with your ss# or bank info to them (to protect your privacy). Contact the student loan ombudsman's office and explain your experience with the collection agency. They will open a file for your loan and have them document both the down payment requirement and the monthly 9 payment requirements. Call Gen Rev. and let them know that you have sent them the rehab letter and that payment was sent to Texas per Ombudsman office info. Get the name of the collector on your case. What is the dollar amount owed on your loan??

I agree completely with this!! Get the collectors first and last name...and dont worry. They have much more to loose than you do. The system was set up by the government...now use every aspect of this system to rehab your loan.

Dawniedawn, anybody can do anything they want at any time....you are right to protect your butt when you deal with others. You dont have to give them anything you dont choose to give and you can also set them up for a fall if they choose to fall. I dont know of many people that like to have their actions questioned by a judge....and I dont think many judges are going to be sympathetic to a debt collector that doesnt act in good faith (not to mention multiple lawsuits and time off work would get very expensive for both the collector and his boss ). Anybody looking to enter into an agreement with one of these SL contractors should set up an account with a bank for this purpose and hold the collector liable for any actions you havent approved and agreed to in advance. So long as they act in good faith, let them help you rehab your loan.