school loan default

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l2marsh

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i have disputed a collection agency concerning a defaulted school loan on the grounds of the dates i attended and the amount of money. dates were crossed out and changed on the copies of the promissary notes the sent me. i am classified as living in the poverty bracket. i did some research on the internet at the dept. of education site. the collection agency won't accept what little i offered them monthly. according to what i researched, i would qualify for loan consolidation which would be based on my actual yearly income and living expenses. i filled out the form for my estimated amount i would be paying and the amount was $0.00. the collection agency for the dept. of ed. was supposed to suggest this to me but instead they are demanding over 10% of my take home pay and threatening me with wage garnishment. should i copy the papers from the site and send them to the agency or call them or seek legal counsel? they denied the certified letter of dispute i sent them and they don't show a payment of the tax retuern they took from me this year. they also did not send a copy of the disclosure papers. i need some help!
 
I am surprised that a collection agency would decline written communication from you -- you should clarify exactly what happened, e.g. you were returned certified mail due to refusal. Once there is a valid dispute to the debt, the collections agency must acknowledge this. However, you may not be disputing the fact that a debt does exist for a certain amount of money. This is completely different than denying the existance of a valid debt.

What was the response that the agency took with regard to your letters? Backing up a bit more, what did you tell them with regard to your financial situation? Have you ever spoken to someone on the phone or clearly explained the errors that you allege?

A collections agency must adhere to state and federal laws regarding collections, including the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. Violations can have severe repercussions, including fines.
 
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