Dispute Over Amount of Tuition Refund

[manhat10023]

My question involves collection proceedings in the State of: New Jersey

In 2005 my son (then 18 Yrs) enrolled in state college, moved into the dorm and started classes in early Sept. By mid Oct, just 5 or 6 weeks later, he withdrew. I petitioned the school for a pro-rated refund and received a refund check for $4,700.00. This was approximately 50% of the paid in full first semester cost. I cashed and deposited the check and never really thought about it again. When my son filed his 2011 tax return this past month, his refund was witheld by the state due to the refund check. I called the school and they said they made a mistake and the $4,700.00 was owed back to them. After much back and forth, they said that was a mistake as well and they only wanted $2,700.00 back. They refuse to send me any kind of documentation or written refund policy, will not release the lien on his tax refund and have put a black mark on his credit report. Any thoughts? Seven years later seems like a very long time to try to collect money. It seems like they are not really clear on anything, and quit honestly after seven years i don't know who I spoke to at that time. Should i flat out refuse to pay? Try to settle on a lesser amount? Small claims? Thanks in advance for your opinions

[Mr. Knowitall]

If his credit report reflects a $4,700 debt when in fact your son only owed $2,700, he can dispute the error with the credit reporting agency.

If you refuse to return the money the college mistakenly refunded to you, they will continue to accurately report that it is owed (until the debt ages off of his credit report) and will presumably continue to try to collect the debt from your son.

This is your son's account with the college, so perhaps he'll have more luck than you when it comes to getting an accounting.

[manhat10023]

Thanks for the quick response. Yes this is his account, I intervened on his behalf as he was getting nowhere with getting an accurate accounting. Still not sure how to proceed. Seven years is a long time and I don't feel comfortable writing a check with no explanation, accounting, paper work etc.