BButrell

That's the best news I've heard all day. "Gross mismanagement" doesn't begin to cover it! And I apologize if I posted my question in the wrong forum.

Followup post (because I can't edit the first one): it turns out that all of the foreclosure info has been sent to my mother, even though she has told them over and over that she is NOT the executor of this will - her aunt (my grandfather's sister) is. From her email to me: Also, they never sent her a letter telling exactly how much was owed. Her aunt claims she didn't get one, either. If FF isn't able to come up with certified receipts showing what they mailed or when, will we have a shot at delaying the foreclosure?

I'll try to make this short: my grandfather died w/a reverse mortgage. We had no idea about it until he died. His sister is over his estate, and she planned for the house to go into foreclosure. For nine months, this woman did not take care of business. My mother just learned in July that we only needed $36,000 to save the freaking house! Now we're scrambling like mad...been denied by every bank, credit union and relative you can imagine. My dad even offered to put his Kentucky home up for collateral (the house is worth 3x what this one is worth) and was shot down. The foreclosure is supposed to go down on October 1. Financial Freedom is the mortgage holder, I think, but I don't think that they are the actual bank. We live in Texas. My question is this: is there any way we can speak directly to the bank? Would a bank want to work it out with my family, rather than have the house go to to auction? It looks like the bank is One West Bank. I've never owned a home, so all this mortgage talk is flying over my head.

That's what I assumed, and I don't doubt that the agreement says this. I've been writing and bugging these people all this time for a copy of something, but they kept telling me to contact the collection agency, even though they've had the account since 2010. I'm going to request a copy in the morning. I'm particularly interested in whether they're allowed to collect so much interest. I also wonder if the school can be held accountable be held accountable under TFC §392.306, which states: A creditor may not use an independent debt collector if the creditor has actual knowledge that the independent debt collector repeatedly or continuously engages in acts or practices that are prohibited by this chapter. Seeing that NCO had to pay $1.5m in 2004 and had to pay Texas hundreds of thousands in 2008, I'm hard pressed to believe they don't know about the shadiness of NCO.

The account was "closed", but not until June of 2010, a full year after this letter was written. I just found this out today. Yeah...needless to say, I'm pretty gobsmacked. Not to be sarcastic, but...how? I thought CAs throwing interest on was a common thing.

I wish I knew! The OC continually refused to speak to me at all, telling me as recently as two or three weeks ago that the account was in collections and to speak to the CA, not to them. But the alleged debt was accrued in 2005. Yes, I specifically quoted the TFC, and asked that if the account couldn't verified within the 30-day period, that the account not be sent back to the original creditor, nor to another collection agency. *headdesk* Yes, I am. I'm talking about a collection agency. I wrote the CA requesting validation in May 2009. They wrote back in June 2009 saying they may not be able to adhere to state laws. I never heard from them again, not even when I followed up requesting in writing verification of the closed account. Just last week, I got the letter that it had indeed been closed, but not until June of 2010.

Story: disputed a charge w/a CRA in May 2009. Get a letter back (last week) that the account was closed & sent back to the original creditor, even though my letter clearly stated that if the debt couldn't be verified, it was NOT to be sent back to the original creditor, nor sold to another agency. (I'm not sure if I was legally entitled to that.) Today, the OC informs me that the account was indeed sent back to them - in June of 2010. Neither the OC nor the CRA contacted me to let me know this. I'm under the impression that they never conducted an investigation at all (although I got a letter saying they would get back to me, they never did), and the fact that they didn't close the account until a full year later makes me wonder if they are in violation of any laws. I was under the impression that if they couldn't verify in 30 days, they had to, at the very least, close the account. Also, I'm wondering if the OC be held accountable under TFC §392.306, which states: A creditor may not use an independent debt collector if the creditor has actual knowledge that the independent debt collector repeatedly or continuously engages in acts or practices that are prohibited by this chapter. This is a typical JDB with a mile-long history of tomfoolery; in fact, they had to pay the state of Texas hundreds of thousands of dollars after Greg Abbott got in their behinds.

Okay, I take that back. It IS the university holding the account hostage. Called the CA (I know, but I'm desperate!), and they informed me that they DID close the original account and sent it back to the collector! They said they will fax me a letter w/i 24 hours verifying this. (Not holding my breath here.) I actually requested (per TFC) that the account be closed and neither sent back to the OC nor sold, but I don't know if that was a legal request. ARRRRGGH, back to the drawing board. (PS: Sorry for all the posts; I wish I could just edit!!!)

I bungled this thread up somewhat, so I'll try to do a more accurate job describing the problem. University sent my account to collections. (This wasn't a student loan; it's a bill.) I disputed the account citing the Texas Finance Code, specifically in regards to the amount of interest being charged ($600 on a $2,100 debt). They sent me back a letter saying the following: This wasn't what I asked for; I asked for either validation, or a statement in writing that the account couldn't be validated in time and was now closed. Speaking of validation, it never came at all. CA also stated: Again, they never sent me back anything, so that's moot. My question is, is this legal? And if so, what is a reasonable length of time to expect a response back?

A little update - I think my university is in the right - the account now belongs to NCO Financial, and my beef is basically with them. If I could, I'd change the title to "NCO Financial holding my transcripts hostage." Since they were unable to verify the debt in time (actually, they never verified it at all), is the debt even valid at this point? Do I have a shot at sending them a letter in hopes that they'll kill the debt and turn my transcripts over? My fear is that they'll just send it back to the school, which wouldn't be too bad. I just don't like the idea of paying NCO a penny. *edit* Mods, can we close this thread since I know now that the problem is NCO, not my school? I feel like I'm misrepresenting the problem. I'll try again.

Neither; it's money I owe directly to the school. Clarification: I wrote that they "never responded" and that's not correct (I can't edit). What I meant is that they sent me a letter with the $600 in interest (the money owed is only $2,000), and never responded to my followup letter. (It never wound up on my credit report, either.) That was two years ago. In their letter, they wrote: I never heard from them again, not even when I wrote them back 30 days later. I'm lost as to how they could collect on the account when, by their own admission, they didn't have enough in their own offices to validate the account in the first place. They also wrote: Maybe, but it's been two years now and I haven't gotten jack from them. Isn't that long enough?

I can do that. Seriously, after being with my job a full year and putting back money so I can clear my student account, they're treating me like this? And I really wanted to get back in by July, too. And because I can't edit my first post, the CA is NCO Financial, not NRA. I disputed this with them TWO YEARS ago, and yet every time I try to talk to my school, they tell me to call NCO Financial. ARGH!!!

Here it is in a nutshell: old university sent my student account to collections. Disputed w/NRA; they never responded. Now the school won't speak with me until I "clear things up" with NRA. NRA refuses to answer any letters. I can't get my transcripts! I don't mind paying the university, but NRA slapped nearly $600 extra fees and can't verify jack. Any advice?

I got it. Small price to pay for their service.