Author Topic: Dispute debt now or wait to be sued?  (Read 465 times)

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dsch190675

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Dispute debt now or wait to be sued?
« on: May 14, 2017 06:21:59 PM »
My situation: OC (university) is using a CA/JDB to attempt to collect 13k from me (which I have no intention of paying to a school who already bilked me out of 80k in student loans). I began receiving phone calls from the CA/JDB several months ago and recently received a letter informing me of the attempt to collect. Letter is brief, but does contain OC name, account number, balance (the 13K) and "other charges" exceeding 4k that the CA just made up to line their pockets.

Question: Should I respond to letter with a DV demand/cease a desist/dispute the debt/etc. and hope it scares them off by demonstrating I won't just cave to their demands/ignore them and allow them to collect default judgement OR would I be better off waiting for them to sue and demanding DV in the answer to the complaint, as well as disputing the debt, etc.?

I have a friend who used to work as a debt collector who informed me that at his company, the people who responded with threatening letters to the CA had their file "escalated" to the legal dept. whereas the ones who simply ignored the letters/phone calls for long enough were sometimes written off as uncollectable or transferred to other JDBs until the SOL expired.

Obviously, I don't want to draw negative attention to myself by coming out of the gate as a combative debtor which will require "special attention" from the legal dept, but I would also like to force them to put up or shut up - either sue me or leave me the alone.

Bruno the JDB Killer

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Re: Dispute debt now or wait to be sued?
« Reply #1 on: May 14, 2017 07:21:43 PM »
What is the balance on the last statement they sent you?

What is the balance they now seek to collect?

Are these private loans or in any way government backed?

What state is this?

Yes, you can request debt validation before they sue you. After they do, it is a waste of time and will be ignored. According to what you posted, they already satisfied the FDCPA requirement for DV.

How did they "bilk you" out of 80K? Did someone force you to take out these loans, or lie to you about the cost?

Did you complete your degree program? If not, why not?
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Clydesmom66

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Re: Dispute debt now or wait to be sued?
« Reply #2 on: May 14, 2017 07:42:54 PM »
Question: Should I respond to letter with a DV demand/cease a desist/dispute the debt/etc. and hope it scares them off by demonstrating I won't just cave to their demands/ignore them and allow them to collect default judgement OR would I be better off waiting for them to sue and demanding DV in the answer to the complaint, as well as disputing the debt, etc.?

WHEN did you quite school and end up owing the tuition and fees?  If the SOL for suing is still alive then sending a cease and desist could escalate this right to litigation.

As to the "default judgment", is this a public state run university?  If it is then as a state school they may not even have to sue you to seize your tax refunds, levy accounts or garnish wages.  State run public schools have a LOT more leeway to collect on these debts than private schools.

I have a friend who used to work as a debt collector who informed me that at his company, the people who responded with threatening letters to the CA had their file "escalated" to the legal dept. whereas the ones who simply ignored the letters/phone calls for long enough were sometimes written off as uncollectable or transferred to other JDBs until the SOL expired.

That is common with small collections or small debt collection agencies who don't want the hassle.  You owe five figures and that is worth pursuing to many collectors.  Add to what I said above about if they are a state institution they may have a LOT of remedies to collect without ever going to court and won't be frightened off by your limited posturing.

As for "bilking you out of 80k in student loans"  no one forced you to apply to that school, enroll in that major, or take out the loans.  If you owe the school a lot of money then it is likely because you dropped out and did not follow the procedures to discontinue enrollment leaving tuition and other fees owed.  Many schools also have in their policy that if they have to send you to collections that cost is passed on to you.  Even if the CA added on fees they are not legally entitled to their FDCPA violation of up to $1000 won't offset the large amount  you owe.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

dsch190675

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Re: Dispute debt now or wait to be sued?
« Reply #3 on: May 14, 2017 08:48:50 PM »
What is the balance on the last statement they sent you?

What is the balance they now seek to collect?

Are these private loans or in any way government backed?

What state is this?

Yes, you can request debt validation before they sue you. After they do, it is a waste of time and will be ignored. According to what you posted, they already satisfied the FDCPA requirement for DV.

How did they "bilk you" out of 80K? Did someone force you to take out these loans, or lie to you about the cost?

Did you complete your degree program? If not, why not?

The amount I actually owe the school is 13k. This does not include the CAs made up additional charges of 4k.

This is debt I owe the school, not the DOE or Sallie Mae, etc. I have my student loans under control and make monthly payments.

The school and CA are in NY. I do not currently live in NY however.

The question I'm asking is if it would benefit me in anyway to dispute the debt or request validation or just ignore them until they sue me and then answer the complaint.

Bilked because of the racket higher ed has become - you're forced to go to school to get any job above burger flipper and the tuition is exorbitant because the fed gov decided to enter the student loan business, extending hundreds of thousands of dollars in tax-payer backed money to 18 year olds. No private lender in the right mind would take on that kind of  risk, and indeed, they don't.

Not much support from a site that's presumably designed to help debtors fend off creditors...

BellEbutton

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Re: Dispute debt now or wait to be sued?
« Reply #4 on: May 14, 2017 08:59:21 PM »
The amount I actually owe the school is 13k. This does not include the CAs made up additional charges of 4k.

This is debt I owe the school, not the DOE or Sallie Mae, etc. I have my student loans under control and make monthly payments.

The school and CA are in NY. I do not currently live in NY however.

The question I'm asking is if it would benefit me in anyway to dispute the debt or request validation or just ignore them until they sue me and then answer the complaint.

Bilked because of the racket higher ed has become - you're forced to go to school to get any job above burger flipper and the tuition is exorbitant because the fed gov decided to enter the student loan business, extending hundreds of thousands of dollars in tax-payer backed money to 18 year olds. No private lender in the right mind would take on that kind of  risk, and indeed, they don't.

Not much support from a site that's presumably designed to help debtors fend off creditors...

No one is forced to go to college to get a higher paying job.  It is a choice.  There are those who don't have a college degree but have good paying jobs simply because they took the time to learn a skill.   There are also those with associate degrees who do very well.

A college degree does not guarantee a high paying job.  Just ask the college graduates still living with Mom and Dad.

Yes, we help debtors, but it doesn't mean that the help will always include sympathy.

CleaningUp

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Re: Dispute debt now or wait to be sued?
« Reply #5 on: May 14, 2017 10:27:10 PM »
There is no law in any state in the nation or at the federal level that REQUIRES or even RECOMMENDS anyone to go to college...

Now, if you are up to date on your college loans, then for what exactly was the $13K loan?  What does the contractual agreement say about default, interest, and collection costs?

Does the contract include an arbitration clause?

Now to the question of being an eighteen-year-old...The laws of EVERY STATE hold that once a person turns 18, he is entitled to sign contracts for anything that he and a creditor might consider.  It's been that way for centuries.

That you, as an 18-year-old, consider yourself incompetent to enter into binding contracts, then why did you sign on the dotted line?  Did your parents ever talk to you about financial obligations?  Did they advise for or against your signing those loan papers?  Were they co-signers on the loan documents?

Unfortunately for you, your only relief on this score is to be able to prove that at 18 you weren't intelligent enough to read and to understand that to which you put your name. 

I don't think you really want to go down that route.  Your life for the next few years isn't going to be as rosey as you would like it to be.  You're not going to want to put that out on the public record and guarantee yourself decades of scrutiny and a host of rejections.

Give us some of the details of what that loan is all about, and give us an outline of what it is that you actually signed.  Then, maybe, we can help you get through this...

But you need to understand and accept that you are going to have to go THROUGH this as there are very few ways open to you to get around it, and if you do get around it, there will likely be a new set of consequences that may or may not be as daunting as what you have now.









Bruno the JDB Killer

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Re: Dispute debt now or wait to be sued?
« Reply #6 on: May 14, 2017 11:02:43 PM »
Bilked because of the racket higher ed has become - you're forced to go to school to get any job above burger flipper and the tuition is exorbitant because the fed gov decided to enter the student loan business, extending hundreds of thousands of dollars in tax-payer backed money to 18 year olds.


Boo hoo. Stop whining and face reality. Your party lost, there is no free ticket to anything you want at somebody else's expense. The sooner you learn that the better. CleaningUp exposed you to the cold hard truth, which you obviously do not want to face. Good luck yo you.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

chester474

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Re: Dispute debt now or wait to be sued?
« Reply #7 on: June 05, 2017 06:01:33 AM »
Requesting a validation will not prejiduce you.

Speculating on what the reaction of any specific debt collector will do is really a waste of time.

Your wages cannot be garnished or your non-exempt assets seised by an unsecured creditor until a judgment is obtained against you.

To obtain a judgment they will have to sue you.

Bruno the JDB Killer

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Re: Dispute debt now or wait to be sued?
« Reply #8 on: June 05, 2017 01:49:26 PM »
I think he's in the wind. He didn't like our advice.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

1965Comet

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Re: Dispute debt now or wait to be sued?
« Reply #9 on: June 07, 2017 12:47:50 PM »
I think he's in the wind. He didn't like our advice.

At least he got some advice, beyond the usual "why did you sign up for [x major] and not engineering"? 

 

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