Topic: Sent to collections without notice (Missouri)

[fupm86]

I withdrew from school back in march and have been working\living in the same town. Back in june I decided to follow a co-worker of mine to the school's cashiers office, he went to make a payment, I went just to stretch my legs. Anyways while I was there I though I'd get a printout of the loan balances from my undergrad. When I did that they informed me that one of my balances had been sent to collections and that all correspondence on the matter had to go through the collection agency.

I had never gotten a bill or notice in the mail about this. Despite having my current address, phone numbers, e-mail, as well as my co-signer's info, they had managed to not tell me about this delinquency until I wandered in on my own.

I found out later that a letter was sent to my mother's house but there were no bills and the amount differed quite a bit from what the CA requested

Fast forward to today I payed off the amount back in september, the collections agent had told me that paying it off  35% upfront and then the rest, it would not be reported in my credit report. Imagine my shock when I obtained my credit report and saw it right there big as dallas!

My credit rating has also dropped significantly as a result of these shenanigans, Im wondering if there's anything I can do? I'm worried it's probably too late to do anything and I might have myself over by paying up immediately.

To summarize:
-  Account sent to collection without notice despite having my correct contact info on file
-  CA lied about collection action showing up on my credit report.
-  Amount in collections differed greatly from initial debt.
      - Letter says 1424.41 while I ended up paying over 4k
- Worried it's too late to do anything other than complain.

[CleaningUp]

-  Account sent to collection without notice despite having my correct contact info on file
-  CA lied about collection action showing up on my credit report.
-  Amount in collections differed greatly from initial debt.
      - Letter says 1424.41 while I ended up paying over 4k
- Worried it's too late to do anything other than complain.

Unless your state requires that debtors be notified that your account is going to collections, it is perfectly legal to place for collections without notice. Having correct contact information is irrelevant.

Unless you have it in writing or a telephone recording of the promise not to post on your CR, you're stuck with a you-said/they-said situation.  Really tough to prove anything.

If you paid, you agreed to the collected amount. Interest and collection fees are allowed if the underlying contract says they are. Most student loans have those provisions.  Also.  You have 1 year from the date of offense to file an FDCPA action, but only against a 3rd party collector.  Unfair and deceptive practices may have a longer SOL under your state laws, but your acceptance off the bill via payment runs against you.

Complaining isn't going to get you anywhere, unfortunately.  In a way you need to be happy that you've got the student loan paid because otherwise, they never die.

[fupm86]

Thanks for the reply. I figured about as much, at least they can't repo my education

[missmuffin]

Thanks for the reply. I figured about as much, at least they can't repo my education

So true, and a great attitude 

[Flyingifr]

Something to tattoo on your forehead (in reverse so you can read it while standing in front of a mirror):

NEVER PAY OFF A DEBT UNTIL YOU HAVE ALL AGREEMENTS IN WRITING.

[metalstorm]

NEVER PAY OFF A DEBT UNTIL YOU HAVE ALL AGREEMENTS IN WRITING.

And never take out a loan that cannot be discharged  "student loan"  It's just not worth it.

[Rottweiler]

Fast forward to today I payed off the amount back in september, the collections agent had told me that paying it off  35% upfront and then the rest, it would not be reported in my credit report. Imagine my shock when I obtained my credit report and saw it right there big as dallas!

My credit rating has also dropped significantly as a result of these shenanigans, Im wondering if there's anything I can do?

Well, the credit report entry is legal.  After all, you did NOT pay as agreed and there was nothing in writing from anyone in the position to make such an agreement (the collection agent on the other end of the phone almost never is authorized to structure a "custom" agreement with a debtor).  All you can do now is wait it out; the effect on the scores will go down over time.

And CU is right:  Student loans are "alive" forever if they are not paid in full.