I filed a written complaint with the DOE regarding the collection agency assigned to my account. I called DOE today and found out that they made notes on my account that I had a VALID CLAIM:

1. CA did not provide proof of my debt upon request
2. CA added on a $90 fee that I did not agree to. Although the DOE felt the CA had a right to charge the fee it was not disclosed to me. The CA led me to believe that the Compromise amount they were having me agree to was for the principal plus 1/2 interest only. Very deceptive.
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I wrote the DOE 2 months ago and never heard a single word back.
I made the final payment on this loan 3 weeks ago to make the payment deadline. I had to pay the $90 as it was included in the amount agreed to and I had no choice but to pay it in order to pay the debt and not break my agreement. If the DOE had the decency to send me a letter stating their decision that I had a valid claim then I might have been able to fight paying the $90. Now I am stuck collecting the $90 from the DOE.

I am writing another letter to the DOE to have the $90 refunded to me. I stated that since they found I had a valid claim that I should have the money refunded.

If DOE does not refund the $90 do I take them to court or take the CA to court?

Since CA broke the Fair Debt Collection Practices Act what is the next step towards legal action? How much do I sue them for? Do I file with my state atty. general against the CA and/or take them to small claims myself?

Definately this CA is going to answer for their actions with me.

Thanks in advance for the info.

You wont get the $90 back....you agreed to pay it and did so. When settleing, the CA's have their own discretion on deciding what the settlement amount may be. They would not have added a fee per se, but given you an amount. CA's dont "add" fees. You paid it voluntarily.

And unless you have proof that you requested validation of the debt with CMRRR mail receipt, you wouldnt have any case. Plus if the CA got such a request and requested the prom note from the DOE and DOE did not supply it, you really would have no valid claim. Depending on the time of year and age of the loan, prom note requests can take up to 90 days.