Last night, I get a call from my father stating that Key Bank called him and stated if he didn't settle a student loan from 1999 for $7800 within the next 24 hours, they would put a lien on his house.

The total amount of the loan is $12,000 now after they have added fees. We have never received anything from them: no calls, no paperwork... nothing. A few weeks ago, it popped up on my credit report with an incorrect date opened and incorrect balance and incorrect DOLA. I sent them a letter a few weeks ago that pretty much asked them to prove what they had on my report or fix it.

So last night, I called the woman at Key Bank. Well, she was actually from Van Ru Credit, but swore up and down they are a "part" of Key Bank and not a CA and that they do not possess my debt. Um?

She gave me these options:

Settle for $9,000

Pay 30% up from ($3820) and pay monthly payments of $150 monthly afterwards

Pay $748 a month until it's paid


I simply am not in the financial position to do any of these. I just relocated to another state and I've used my savings to set up here. I can't get a credit card or loan with my credit and have no co-signer.

She stated I had until 3 PM today to call and let them know my intentions. If I don't accept one of those offers, they are going to sue to garnish my wages and put a lien on my father's house.

The creepiest thing was what she knew about me. They knew where I worked (not on my credit report), that I had a damn parking ticket in 1999, knew that my father had been unemployed for two years (he has his own business now, sort of), and every single thing either of us had ever purchased. It was really creepy.

I just really need some advice on how to handle this. Thanks in advance.

What a crock of baloney! http://www.vanru.com/ They are a collection agency, They are a contractor for the US Department of Education!!

What type of loan is it?? Federal or private??
Key Bank...are they the lender or servicer??
Stafford, DL sub/unsub?? Plus Loan?? Alternative loan??
Was your father a co signer?

A...Call 1-800-4fedAid and get your info for the loan. If it is a government loan, there are some major violations. I recommend highly that you do not call them back today until you get all the facts. And dont talk to that collector again. Nothing will happen today.

Most of the information they got for you comes of Lexus Nexus...I know that they use that system for skiptracing.

Key Loan is a private loan and they are the lender. My father was a co-signer.

This is outrageous. What the heck do I do? They are calling me constantly.

Also, they want post-dated checks for everything, all at once. Um..


Fair Debt Collection Practices Act:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.

(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.



They can't do that.. can they?

Since you're sure this is a Key Alternative loan, it's treated as a consumer debt. You are on the right track when you sent them a dv letter. They have 30 days to respond to you with documentation such as copies of your original promisory notes, etc.

When they contact you, you should tell them that you are waiting for their response to your initial letter. That is your legal right. Depending on the state where you lived when you borrowed the money and the state you live in now, I doubt they can garnish your wages or place a lien without a court hearing.