student loan problem

[geronimotwo]

i took out a student loan to pay for my associates that i finished in '85.  around 2-3 years after that, as i was leaving arizona, i sold 2 vehicles and sent the balance (around $2500 in a money order) of what i owed to pay it off.  a while back i started to get calls from some collection company.  as i don't give out any info on the phone i told them to send me notice in the mail (i actually thought this was some kind of scam, but the local police said they were legit.).  a week later i receive a letter stating that i owed about $6500 on my loan .  i wrote them back to say that i didn't owe on a student loan, and that they didn't have my correct ss# (although it is close).   now the department of education has written me stating that i owe on this loan and that they will be taking money from my tax refunds.  when i wrote them back, telling them basically the same thing they wrote me again with more info, and it looks like it is my loan for sure, but with the wrong ss#. it is only off by one digit, so i am assuming there was a clerical error, and the mo that i sent them did not get into my account bacause of this.

what i want to do is give the doe all my info and get this straightened out, but i'm afraid that this will lead to me basically having to repay the loan plus interest and collection fees, if they cannot find proof of my mo. 

what really burns me up is that my original address for the loan is my parents current address.  if this had been brought to my attention before, i would have retained the proof of payment. i do not keep receipts for over 20 years! 

[Jamisjockey]

Gotta love the government....

[Northwoods]

You need to decide how much it's worth it to you to fight this.  Then hire a lawyer for up to that amount.  Realize that you may owe the lawyer whatever they charge on top of the $6500. 

In the mean time I would ask them for a full accounting of the loan including how they got from $2500 to $6500.  That's around 4% APR, so it's probably legit assuming you really owe the money.  But if they can't produce the full funding and repayment history dating back to the start of the original loan that might give you a legal leg to stand on to get the amount thrown out.

[mtnbkr]

Did you not get a letter saying the loan was paid in full?  I did when I paid off my student loan.  That letter is affirmative defense that your loan obligations are satisfied.

Chris

[geronimotwo]

^ i do not remember getting a letter that acknowledged payment.  at that time i was in the process of moving, and didn not give them a forwarding address as i thought it was all paid off.

[Ron]

Aren't they able to track the payment you did make via the correct SS#?

 

[geronimotwo]

Aren't they able to track the payment you did make via the correct SS#?

 

one part of me wants to believe that would be true.  the other part of me is thinking that if i give them my correct number then they are going to screw with my credit and federal refunds (with no faith that the gov would have the proper record keeping to help me).  i am sure that i put my correct ss# on the mo, and on the previous payments that did make it on my loan.  i am also thinking it shouldn't be any problem for them to "find" my correct ss# on their own, as they have my address and name and i have filed my returns from here for the past 9 years.

[Northwoods]

Wait until you file your taxes and receive any refund owed, then clue them in.  Meantime also set up your tax withholding to make sure you owe the .gov next time.  Especially in situations like this it's faaarrrr better to owe $100 than be due a refund of $1.

[geronimotwo]

i'm sure i could arrange it so they would never get a dime, i just don't like to have this crap hanging over me, and would like to have it wrapped up.

[Jamisjockey]

With the incorrect social, I'm not sure how they can force you to pay it.  But I'm also not sure how you can correct it without telling them your correct social..... 

[Bogie]

Something seems really, really hinky... Maybe they got a list somewhere of old student loans, they're doing a dyslexia with the numbers, and then hoping that enough people bite to make it worthwhile...

[MillCreek]

Back when I was a director at a large healthcare clinic, the number of incorrect billing issues that ensued because someone miskeyed a digit was quite large. I have no problems believing billing errors due to data entry issues.

[geronimotwo]

Something seems really, really hinky... Maybe they got a list somewhere of old student loans, they're doing a dyslexia with the numbers, and then hoping that enough people bite to make it worthwhile...

that was what i thought when i was first contacted.  which is why i called our local PD, and gave them the number of the collection agency.  but they said it was legit.  and now i am being contacted by the department of education themselves.

[geronimotwo]

In the mean time I would ask them for a full accounting of the loan including how they got from $2500 to $6500.  That's around 4% APR, so it's probably legit assuming you really owe the money.  But if they can't produce the full funding and repayment history dating back to the start of the original loan that might give you a legal leg to stand on to get the amount thrown out.

i was watching a show on foreclosures a while ago, and they said the keywords were "show me the note".  if the current bank that had purchased the mortgage did not have the proper paperwork, the foreclosure would be thrown out.  would that really work?   

[Northwoods]

i was watching a show on foreclosures a while ago, and they said the keywords were "show me the note".  if the current bank that had purchased the mortgage did not have the proper paperwork, the foreclosure would be thrown out.  would that really work?   

More or less.  If they can't prove that the debt is legit, and that you actually owe the money (IOW produce the original paperwork with your signature stating a promise to pay to the agreed terms) then you can't be compelled to pay it back.  That said IANAL, and different states may have different levels of proof required for cases like this.

If it were me I'd probably push a few of these sorts of simple things for a while.  If that doesn't make them go away, then I'd start looking into a lawyer.  Don't mess with this for too long however before calling in the tile crawlers.  Student loans, at least the .gov backed ones, have collections powers similar to the IRS.  They don't need a court order to garnish bank accounts and paychecks like any other debt would require. 

[RoadKingLarry]

I'd be tempted to tell them they have the wrong SS# so they must be after someone else.
Show me something with MY SS# on it and I'll be interested in talking with you.

[AZRedhawk44]

that was what i thought when i was first contacted.  which is why i called our local PD, and gave them the number of the collection agency.  but they said it was legit.  and now i am being contacted by the department of education themselves.

That's the hinky part to me.

DOE doesn't do loans. They do assign pools of money to sub-agencies, such as Sallie Mae, who then makes a federally guaranteed loan. They certainly don't have a collections department.  They do contract with other companies for their collections oriented work, though.

http://www2.ed.gov/offices/OSFAP/DCS/contact.us.html

I'd suggest directly contacting DOE themselves and asking for a current balance based on your true factual SSN.

When you contact DOE, be sure to use a contact method independent from whatever you've been given so far.  The phone numbers and email address on the page above might be a good starting point.

[Doggy Daddy]

I would think that if this were a legit claim, you could pull a free credit report and see what it says.  That would be one of my first moves.

DD

[geronimotwo]

That's the hinky part to me.

DOE doesn't do loans. They do assign pools of money to sub-agencies, such as Sallie Mae, who then makes a federally guaranteed loan. They certainly don't have a collections department.  They do contract with other companies for their collections oriented work, though.

http://www2.ed.gov/offices/OSFAP/DCS/contact.us.html

I'd suggest directly contacting DOE themselves and asking for a current balance based on your true factual SSN.

When you contact DOE, be sure to use a contact method independent from whatever you've been given so far.  The phone numbers and email address on the page above might be a good starting point.

good advice,  i'll write them a letter.

 

I would think that if this were a legit claim, you could pull a free credit report and see what it says.  That would be one of my first moves.

DD

my credit score was perfect as of 6 months ago.  i would imagine this would have been on the report long before then.

[geronimotwo]

here is a copy of the letter i am sending.  

"To Whom It May Concern,

I am contesting the validity of this debt (reference no. xxxxx).  Please send me verification of the debt(s), and copies of any judgment(s) obtained.  Verification of the debt(s) shall include, but not be limited to, a copy of all original loan paperwork, as well as a complete and detailed funding and repayment history including a breakdown of the additional fees incurred.

sincerely,"



should i add anything else?   (and no, i am not going to mention that i will be buying one of those bullpup shotties!)

[Brad Johnson]

I wasn't aware the DOE sold uncollected debts.  Presuming they don't it sounds like you may be the victim of an attempted debt collection fraud scheme. 

Make a big show of protesting the letter and proving your innocence by filing complaints/reports with the following:

1) The police (which it sounds like you have already contacted them, but you need to actually FILE a report and get their investigative division involved).

The US Postal Service (mail fraud as the letter was sent to you via USPS)

The FBI (as a potential large-scale fraud scheme)

Your state Attorney General (they will, or should, directly contact the business and request supporting documentation)

I had a problem with a debt collector who was going after me for a debt in a state that I never even visited simply because my name matched.  Repeated calls and letters did no good, but doing the above had a resolution in under a month.

*edit to add* GTwo, I was writing this as you were posting about writing the protest.  I would add to the above letter the following line.

"In addition to this written protest I feel this is a malicious and fraudulent attempt to collect on a nonexisting debt.  As a result I am contacting the following about this matter:

1) My local police department fraud investigation division.
2) The United States Postal Service
3) The Federal Burea of Investigation fraud investigation services
4) The (insert your state here) Attorney General's Office"

Brad

[geronimotwo]

thanks brad, that sounds like a good idea!

[Scout26]

And sign Brad's name to the letter !!!