In 1995 I co-signed for an education computer loan through IBM. 2 yrs later the person I co-signed for defaulted on the loan. When he defaulted, I started making payments and had to pay collection charges. Soon after, he started making payments again then in 1998 he filed chapter 13. At that time I was told by his lawyer, loan company & collections that I would no longer be contacted or billed for the account. That it was to be paid off through his Chapter 13. His lawyer sent copies of the bankruptcy paperwork to keep on file. This paperwork states that he is responsible to make payment 100% to the loan and that the co-debtor is responsible for 0%. It also states that any balance due on student loans/financial aid after the bankruptcy completed shall be paid in full.
Now, after 9 years, I receive notice from NCO Financial for $2300 to be paid immediately as a settlement. I contacted the loan company & they said the account has been sold to NCO. I spoke to a cust. service rep & their supervisor, but no one could give me any info on the account or it's standing when it was closed. I then contacted NCO and they say the last payment to the account was 8/2001. I explained the situation in 1998 and that I hadn't received any billing or phone calls regarding this account for 9 years. NCO says according to their records, I am now the ONLY debtor listed on the loan and that they will not attempt to collect from the person I co-signed for.
I'm not sure what to do at this point. I've tried contacting the person I co-signed for, but I doubt I will get a response. Is NCO legally able to collect this debt after so long (I live in CA, the collection agency is in PA)? Also, is it legal for them to only collect debt from me?
Any advice would be greatly appreciated. Thank you.
Now, after 9 years, I receive notice from NCO Financial for $2300 to be paid immediately as a settlement. I contacted the loan company & they said the account has been sold to NCO. I spoke to a cust. service rep & their supervisor, but no one could give me any info on the account or it's standing when it was closed. I then contacted NCO and they say the last payment to the account was 8/2001. I explained the situation in 1998 and that I hadn't received any billing or phone calls regarding this account for 9 years. NCO says according to their records, I am now the ONLY debtor listed on the loan and that they will not attempt to collect from the person I co-signed for.
I'm not sure what to do at this point. I've tried contacting the person I co-signed for, but I doubt I will get a response. Is NCO legally able to collect this debt after so long (I live in CA, the collection agency is in PA)? Also, is it legal for them to only collect debt from me?
Any advice would be greatly appreciated. Thank you.
