elton_brand
New Member
Hello,
I took out an private educational loan from Wells Fargo that was charged off in 12/2004. I do realize it would have been ideal to have paid this off, but due to unemployment, I was not able to. The debt was sold to a collection agency.
The agency offers to match the debt dollar-for-dollar as I paid it off. So essentially, I guess they are asking for 50% of the balance owed on the loan. I have yet to respond because it appears that the statute of limitations has expired on the loan (I live in Pennsylvania). I do know that contacting them will reset this loan, so I haven't. I have two questions:
1) What truly happens to a private loan once the SOL expires. I do know that I cannot be sued and it will sit on the credit report for a while, but past that, what happens? I know that Wells Fargo cannot come back for this money, but after the SOL expires, isn't the collection agency no longer able to get this balance also?
2) Let's say that theoretically, I contacted the company and agreed to start paying the loan back slowly. Couldn't they apply a high interest rate to the balance, making it virtually impossible for me to pay back anytime soon. On the offer, they made no mention of an interest rate, but how can I be assured they will not apply one to the balance once I started paying on it...if I did.
Any accurate feedback would be helpful.
Thanks alot.
I took out an private educational loan from Wells Fargo that was charged off in 12/2004. I do realize it would have been ideal to have paid this off, but due to unemployment, I was not able to. The debt was sold to a collection agency.
The agency offers to match the debt dollar-for-dollar as I paid it off. So essentially, I guess they are asking for 50% of the balance owed on the loan. I have yet to respond because it appears that the statute of limitations has expired on the loan (I live in Pennsylvania). I do know that contacting them will reset this loan, so I haven't. I have two questions:
1) What truly happens to a private loan once the SOL expires. I do know that I cannot be sued and it will sit on the credit report for a while, but past that, what happens? I know that Wells Fargo cannot come back for this money, but after the SOL expires, isn't the collection agency no longer able to get this balance also?
2) Let's say that theoretically, I contacted the company and agreed to start paying the loan back slowly. Couldn't they apply a high interest rate to the balance, making it virtually impossible for me to pay back anytime soon. On the offer, they made no mention of an interest rate, but how can I be assured they will not apply one to the balance once I started paying on it...if I did.
Any accurate feedback would be helpful.
Thanks alot.
