A private student loan of mine went into default because I couldn't afford the payments. It was sent to collections. I called that agency to arrange payments, but they told me it was back with the original servicer. I called them, made a payment, was told it would stay with them, then a week later, it was with another collection agency. I called that agency to arrange payments, then found out the loan had been sold - neither my original creditor nor new owner informed me of this - and that the collection agency was servicing my new owner. They refuse to accept the payment plan I can afford. I've asked for documentation (complete promissory note, complete contract, statement of payments, etc) and have received an incomplete, scant few pages. I've researched, and this particular owner paid a $3.2 million settlement to the FTC in 2013 for illegal collection activities. Thusly, I keep asking for documentation before we proceed further. If they took me to court, I doubt they'd win because they obviously don't have documentation, but I don't want it to get that far. I want to pay off the loan, but they're not cooperating and have an illegal history. What to do?
"They refuse to accept the payment plan I can afford." Really? I was unaware that they HAD to do anything.
"If they took me to court, I doubt they'd win ..." I wouldn't put all my eggs i that basket if I were you.
The company's 'illegal' history does not come in to play unless the company is doing something improper in YOUR case.
I STRONGLY suggest that you enlist the services of an attorney who is well-versed student loan law.
This reply is made in response to a question posted on a public message board. This response is for general information only. This response does not create an attorney-client relationship. You have not hired the responding attorney and the responding attorney has not agreed to represent you.
You could sue them or defend the suit based on standing, fraud, or FDCPA grounds.
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You ave indicated that you want to pay off the loan but the purchaser of the debt is not cooperating with you. If you filed a chapter 13 plan, you can force the purchaser to accept payments over time. A chapter 13 plan can be a 3 or 5 year plan (36 or 60 payments). Consult with a very experienced debt and bankruptcy attorney who practices chapter 13 and is also a debt attorney. Otherwise, you can try to fight the lender in state court, by raising defenses such as standing, fraud, violations of the fair debt collections act, failure to state a claim, etc. Also, an experienced debt attorney. may also be able to negotiate a settlmenet for you outside of court. Best of luck ,Barbie D. LIeber
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