Student loan Collection after 24 years - HELP

[JohnWilkers]

Today I received a letter from Allied trying to collect on a student loan original amount $5000. I know there isn't a SOL on student loans. However, they mentioned if it is not resolved, they can do 1. Wage Garnishment by ED 2. Fed tax refund to ED 3. Negative reporting MAY be posted by ED. They provided a 2 line very generic original amount, interest and collection fees. totaling $19,000.

 

Here is a background:

Another collection agency during the past 24 years including ED tried to collect this, they have put it on the credit report various time. It has all disappeared many years back from credit report.

 

In the past I disputed them with another collection agency and after repeated attempt they provided me document which showed I went to University in TEXAS, I have never set a foot on the campus nor enrolled in any classes. However, it maybe for another university, and they cant produce the document.

 

Can they report this on my credit report? I read from nolo law they can report it for 7 or 10 years, is this correct?

 

Please help, I have worked very hard to clean my credit and now this.

 

Thank you in advance.

 

[casemodgod]

Was this a Sallie Mae loan, or a private bank loan?

 

That matters, but even still, bad accounts cannot report past 7.5 years.

Except BK

 

https://www.mint.com/blog/goals/credit-report-statute-of-limitations-05022011/

 

Reference for you

[capya]

Was this a Sallie Mae loan, or a private bank loan?

 

That matters, but even still, bad accounts cannot report past 7.5 years.

Except BK

 

https://www.mint.com/blog/goals/credit-report-statute-of-limitations-05022011/

 

Reference for you

 

 

Unfortunately, defaulted federal student loans can remain on your report forever. They can also garnish your wages and tax returns. Hopefully, if they don't have proper documentation on the loan(s), you may have some recourse.

[BeachDweller]

They cannot report beyond the 7.5 years. When did you receive the notification from the collection agency? If it was within the last 30 days send a debt validation request immediately. As far as I know the Department of Education only has others service their accounts, they don't sell them when in default. Thus, the FDCPA will not apply to the Department of Education as an original creditor if they are the ones seeking to collect. If they are using a collection agency, the FDCPA will apply to that collection agency. Thus, until the collection agency provides validation (if you are within the initial 30-day dunning period) the collection agency must stop all attempts until they can provide valuation. How they may recover their money depends on state laws as well as federal. In all cases they can take federal tax returns, but some states limit garnishment abilities depending on state statutes. ICAN knows quite a bit about state laws and garnishments.

[mendelssohn]

They cannot report beyond the 7.5 years. When did you receive the notification from the collection agency? If it was within the last 30 days send a debt validation request immediately. As far as I know the Department of Education only has others service their accounts, they don't sell them when in default. Thus, the FDCPA will not apply to the Department of Education as an original creditor if they are the ones seeking to collect. If they are using a collection agency, the FDCPA will apply to that collection agency. Thus, until the collection agency provides validation (if you are within the initial 30-day dunning period) the collection agency must stop all attempts until they can provide valuation. How they may recover their money depends on state laws as well as federal. In all cases they can take federal tax returns, but some states limit garnishment abilities depending on state statutes. ICAN knows quite a bit about state laws and garnishments.

If they are still in default, they can still report. Even in the most consumer friendly states, they can garnish wages for student loans. They never go away.

[gmsgvs]

Not quit sure if I can post links but I wanted to post this information which I hope may be helpful to you.
http://www.gpo.gov

Direct and FFEL loans:

http://www.gpo.gov/fdsys/pkg/USCODE-2013-title20/pdf/USCODE-2013-title20-chap28-subchapIV-partB-sec1080a.pdf

 

(f) Duration of authority
Notwithstanding paragraphs (4) and (5) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c (a)(4), (a)(5)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

Perkins Loans

http://www.gpo.gov/fdsys/pkg/USCODE-2013-title20/pdf/USCODE-2013-title20-chap28-subchapIV-partD-sec1087cc.pdf

© Cooperative agreements with consumer reporting agencies

(3) Notwithstanding paragraphs (4) and (5) of subsection (a) ofsection 1681c of title 15, a consumer reporting agency may make a report containing information received from the Secretary or an institution regarding the status of a borrower’s account on a loan made under this part until the loan is paid in full.

[Why Chat]

Try this:

http://www.whychat.5u.com/GUIDEBOOK.html

 

http://www.whychat.5u.com/SOL%20PROGRAM%20GUIDE.html

 

If it is NOT reporting. send the CA this:

 

http://www.whychat.5u.com/nottoca.html

 

( Obviously do NOT include the underlined phrases)

Edited October 4, 2014 by Why Chat

[JohnWilkers]

It has been been pursued for the approximately 24 years ago, no idea, If I recall vaguely it was something along the line GSL.

Was this a Sallie Mae loan, or a private bank loan?

 

That matters, but even still, bad accounts cannot report past 7.5 years.

Except BK

 

https://www.mint.com/blog/goals/credit-report-statute-of-limitations-05022011/

 

Reference for you

 

I have been receiving collection notices for many years, sometime directly from ED and sometime through collection agency. The last notice I received dated last week, HOWEVER, they wrote to me they sent a letter April of this year. I dont recall getting April letter, not sure. The notice received is from Allied collection agency.

They cannot report beyond the 7.5 years. When did you receive the notification from the collection agency? If it was within the last 30 days send a debt validation request immediately. As far as I know the Department of Education only has others service their accounts, they don't sell them when in default. Thus, the FDCPA will not apply to the Department of Education as an original creditor if they are the ones seeking to collect. If they are using a collection agency, the FDCPA will apply to that collection agency. Thus, until the collection agency provides validation (if you are within the initial 30-day dunning period) the collection agency must stop all attempts until they can provide valuation. How they may recover their money depends on state laws as well as federal. In all cases they can take federal tax returns, but some states limit garnishment abilities depending on state statutes. ICAN knows quite a bit about state laws and garnishments.

Edited October 4, 2014 by JohnWilkers

[timfreeman864]

No matter how many letters you send they are not going to stop. They don't have the proper documentation and they know it. They just want to get some money from you to settle. It Could be $800 to $2,500. Don't send anything or talk to them on the phone. Block there number because once you call they can say you worked out an agreement and the credit time-table starts over. HEAR ME NOW...lol. Find a cheap attorney in town (I got one that charges $125 every time he sends out a letter) requesting documentation proving that its your debt giving them 30 days respond. They won't respond or will send some bullcrap like your original loan agreement but know record of default. Then the attorney needs to send a certified letter to the credit bureaus demanding that this be removed as it is fictitious and fraudulent information. Happy Hunting