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how to sue debt collector


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16 replies to this topic

#1 joulian

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Posted 12 February 2017 - 01:16 AM

I got a call from a debt collector for my student loans last week. They said they had gotten my student loan contract on Jan 17 2017, and they told me I owed 90xxxx.00. I said how much was loan 2 months ago. He said MINUS 18,000.00. I asked him where did almost 20,000.00 come from? He said thats our fee. 

 

I asked him why he charged 18000.00 for late fees. He said because I was late. I told him he was working for a scam.

 

Btw this loan was for my MBA 8 yrs ago that was suppose to be 38,000.00 upon graduation. I had one class left and after a year and a half they told me that they didn't offer the class So here I am fighting them for 6 years ( Debt collectors ) I finally reached back out to the school and told them I am suing . THey then told me they will offier the class. SO I am almost done now. And plan to pay them back. 

 

I believe the fact they are doubling the cost in 8 yrs is wrong. How can I stop this?


Edited by joulian, 12 February 2017 - 01:19 AM.




#2 mendelssohn

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Posted 12 February 2017 - 10:06 AM

It's legal for them to add those fees on defaulted SL.

#3 joulian

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Posted 12 February 2017 - 11:32 AM

Thats what I m trying to find out. Where do I find that piece of legislation?



#4 mendelssohn

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Posted 12 February 2017 - 12:20 PM

You'll have to search, but it is legal. You have no grounds for a lawsuit.

Edit: here you go. This is just an overview though.

https://studentaid.e...y-loans/default

Edited by mendelssohn, 12 February 2017 - 12:22 PM.


#5 tmcgill

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Posted 12 February 2017 - 06:58 PM

If your loan has aged enough, you may be able to get a refi through the Department of Education (DOE).
The debt collector I was working with tacked on fees. When I went through the DOE, the amount I owed was lower and was the actual amount of the loan. They helped me refi through Mohela. I told the ombudsman the CA kept changing the amount and was difficult to work with. They insisted I had to pay a large down payment to refi, which did not sound right.

 

https://studentaid.e...-loans/disputes


Edited by tmcgill, 12 February 2017 - 06:59 PM.


#6 mendelssohn

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Posted 12 February 2017 - 09:27 PM

^ You got very lucky.  That's worth a shot for the OP.

 

There is still no grounds for a lawsuit though.



#7 tmcgill

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Posted 13 February 2017 - 08:17 AM

Yep, no lawsuit.



#8 joulian

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Posted 13 February 2017 - 11:37 PM

The problem with these loans is the laws they were born out of is not to the benefit of anyone other than the politician that got paid to make them. 

The next problem is that a judge that might not give a rip about all that and will lean to a little common sense would probably not give the CA the advantage 

 

especially in my case, where the school defunded my program and I had to start over when I was in my last semester of my 4 yr degree. Because they wouldn't fire the chair that was retiring in a year ( they kept it open and put everyone on hold ) 

So here I am paying for something I didn't get. I had to start over and stay in school ANOTHER 3 yrs.

 

I want them to sue so I can have a judge listen to the case  



#9 tmcgill

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Posted 14 February 2017 - 08:45 AM

With all those moving parts, review it with an attorney who has successfully won this type of case.

#10 mendelssohn

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Posted 14 February 2017 - 11:55 AM

The problem with these loans is the laws they were born out of is not to the benefit of anyone other than the politician that got paid to make them. 

The next problem is that a judge that might not give a rip about all that and will lean to a little common sense would probably not give the CA the advantage 

 

especially in my case, where the school defunded my program and I had to start over when I was in my last semester of my 4 yr degree. Because they wouldn't fire the chair that was retiring in a year ( they kept it open and put everyone on hold ) 

So here I am paying for something I didn't get. I had to start over and stay in school ANOTHER 3 yrs.

 

I want them to sue so I can have a judge listen to the case  

 

That is grounds to get those loans forgiven. 



#11 tiggerlgh

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Posted 14 February 2017 - 12:54 PM

The problem with these loans is the laws they were born out of is not to the benefit of anyone other than the politician that got paid to make them. 

The next problem is that a judge that might not give a rip about all that and will lean to a little common sense would probably not give the CA the advantage 

 

especially in my case, where the school defunded my program and I had to start over when I was in my last semester of my 4 yr degree. Because they wouldn't fire the chair that was retiring in a year ( they kept it open and put everyone on hold ) 

So here I am paying for something I didn't get. I had to start over and stay in school ANOTHER 3 yrs.

 

I want them to sue so I can have a judge listen to the case  

What school did you go t/Transfer to that  you had to start over vs. taking a couple more classes to get the degree?



#12 joulian

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Posted 16 February 2017 - 09:46 PM

Men and Tig

 

I went to the University of Southern MS

 

I did not have someone paying for my way, the cost of moving would have put me 2 to 3 years behind. 

Out of state tuition and living expense I calculated it both ways it was better for me to stay in the town I was in. I had a job etc.



#13 joulian

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Posted 16 February 2017 - 09:48 PM

The prob is after 15 yrs I still can't get an attorney to take it.

 

Here recently I have come to conclusion this is a civil rights matter. 

 

CAN ANY ONE HERE GUESS WHAT ITS CALLED WHEN YOU ARE HANDED A DEBT THAT YOU CAN"T PAY OFF?



#14 hodap2001

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Posted 17 February 2017 - 06:24 PM

The primary reason that you can't find an attorney to take your case is because no attorney is willing to take on the risk of going up against the U.S. Department of Education in Federal Court. According to 34 CFR 685.102 -- "The failure of a borrower and endorser, if any, to make an installment payment when due, or to meet other terms of the promissory note, if the Secretary finds it reasonable to conclude that the borrower and endorser, if any, no longer intend to honor the obligation to repay, provided that this failure persists for 270 days."...shall be placed into default and held to the terms and conditions outlined in your signed Master Promissory Note. Furthermore, the Secretary of the U.S. Department of Education does not recognize or endorse any post-secondary institution or the quality of instructions delivered or offered - the Secretary only recognizes the Accrediting Agency that oversees post-secondary institutions and it is the Accrediting Agency who enforces and set the standards for the quality of education.

 

​Your fight is misplaced and should've been taken up with the college and their accrediting agency and now its your fault for letting your student loans go into default. Federal Financial Aid is a financing tool to fund your education - just because you don't like your program of study doesn't mean that releases you of your liability. You signed a Master Promissory Note and took Federal Financial Aid dollars and you have to repay those dollars - it's not free money, anyone who was in an MBA program should know that.

 

​I also hate to burst your bubble, but Federal Financial Aid loans (i.e. FFEL and Direct Loans) are calculated at Simple Daily Interest (I think you know where I'm going with this) so let me do some calculations for you. Let's say you graduated in January 2008 and your first payment due date is July 1, 2008 - since you were in a Graduate Program, you would not have been eligible for Subsidized Loans, just Unsubsidized loans - so let's say your $38,000 is actually $43,168 (Simply daily interest for one year is $2584 X 2 for 2 year program). So from July 1, 2008 until today - your simple daily interest has accrued to a whopping $25,358 (rounded up) - so now we are at $68,526 on just accrued interest and that doesn't even include collection costs, late fees, etc. is limited to up to 25% set by ED so lets add on 25% and that's another $17,131 and that brings our total to $85,657 over the past 8 years that doesn't even include any capitalized interest if you took on any deferments or forbearances during the timeframe. So, yes - your student loan debt level over the past 8 years is very reasonable and convincible based upon my "rough calculation"

 

​So I hate to break it to you, but the consequences of default is clearly outlined in your Master Promissory Note.

 

​What I would recommend that you do, is finish your MBA program and then start the Rehabilitation process of paying back your legal obligation to the federal government and then get onto an Income Based Repayment program where it can be discharged after you make 120 monthly payments.

 

​AND YES, you can pay off this debt slowly and still have a normal productive life - trust me as I have witnessed it first-hand on this forum from other folks.

 

​Good Luck to you!


Edited by hodap2001, 17 February 2017 - 06:26 PM.


#15 IndyPoolPlayer

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Posted 17 February 2017 - 07:36 PM

First you claimed predatory lending -> https://creditboards...howtopic=561449

 

Now you claim civil rights.

 

As I stated in your other thread that school is no fly by night like ITT or Corinthian. It's a well established and fully accredited school. Your classes will transfer to another school and many programs are tele-education these days so you can take your classes online. 



#16 mendelssohn

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Posted 18 February 2017 - 10:32 AM

First you claimed predatory lending -> https://creditboards...howtopic=561449

 

Now you claim civil rights.

 

As I stated in your other thread that school is no fly by night like ITT or Corinthian. It's a well established and fully accredited school. Your classes will transfer to another school and many programs are tele-education these days so you can take your classes online. 

 

After reading that, you can disregard my comments about seeking loan forgiveness.

 

You need to rehab these loans and start paying on them.



#17 anon26

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Posted 18 February 2017 - 01:30 PM

You can't find an attorney to take it, because you have no grounds for a lawsuit. You're confused. Your issue is with the school themselves, not with the collection agency or the Dept of Ed. That is like buying a car and getting a loan from a bank to pay for it, then the car breaks down, and you want to sue the bank that lended you the money. Not logical. 

 

Any loan you take out is going to accrue interest over time. Also, with it being in default, collection fees get tacked on. The good news is that if you successfully complete the 9 month rehabilitation agreement, any remaining collection fees will be waived once you exit default status. Meaning that if you do 9 month rehabilitation, the collection fees go bye-bye at the end of the 9 months, and your loan balance will significantly drop.

 

You were not "handed a debt you cannot pay off".... You willingly signed and agreed to interest and possible collection fees when you signed the Promissory note to borrow the money. The collection agency can mail you a copy of your original Promissory note upon request.






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