Question:
I took out stafford federal loans when I was an undergrad(1990-94) that were
subsidized. All of the loans were through citizens bank. I then went on to
graduate school and sent in a defferment paper when I entered graduate
school as well as my address at the new school. I graduated in Dec 1998
thinking I would have 9 months to begin making payments. I actually planned
on paying the entire 18000 or as much as possible to avoid interest.
Well, I called citizens bank after getting a job and they informed me my
loan had been sold to EFS services. So I called EFS services and I was told
they had no record what so ever of my loan. I scratched my head and didn't
know where to go. Then in may 1999, I applied for a corporate card for my
job and was rejected. I got a copy of my credit report and wham, I had a
claim against me (apparantly filed with the IRS as well) for 18667 (667 I
guess for fees). This company was called USA Funds. I called them and
explained my situation and what happened and offered to pay. They told me I
was now in the hands of a collection agency they turned me over to and they
wouldn't deal with me any furthur. I then wrote them a letter clearly
stating what had happened and that I should be deferred until August of this
year. They sent me a letter stating to contact the collection agency again!
So I called the agency. They told me I now owe 27500 or so. Ouch!!! I
explained to them and a manager there. They told me pretty well to screw
off and pay the money. I've been in contact with them several times since
to no avail. One guy told me to take them to court if I don't like it but
they'll garnish my tax return for the rest of my life if they have to.
Anyways, My first job is now gone as it relied on me getting a corporate
card (a travelling job). This new job requires a security clearance that I
may not get because of my poor credit.
What can I do? Is a settlement for a lower agreed amount possible? I could
probably pay the entire 18667 if given the chance to settle.
Help and I may hire you to help me out of this or would appreciate any
referrals in the tucson AZ area!!
Answer:
It sounds like you definite need the help of a competent attorney. I
think that the area of practice that you need may be called consumer law
(knowledge in the areas of the Fair Debt Collection Practices Act,
Unfair and Deceptive Acts and Practices, etc). I'm not an attorney, so
I'm not sure. Maybe some of the attorneys who read your posting could
suggest how to locate the right type of attorney for your situation.
Another place to try looking is: http://www.consumerlaw.org since they
sell professional consumer law practice books and software for use by
attorneys. Maybe they can point you to some attorneys in your area.
