What Can and Can't a Collection Agency Do
hello,
I am in default of old student loan from 1985. I was in texas, but now I live in Nebraska. a year and a half ago my check started being garnished at 15%. It averages about 300 dollars a month. The original student loan was for $2623.00. The last "statement" I ever recieved was for $8115 in july of 07. this was principal, plus 3921 in interest, and 1570 for "fees & costs".
As of today I have been garnished for $7,330.
so therefore I figured I must be getting close to being paid off. I called the collection agency because like I said I've never recieved a statement, a new balance, or anything. The woman I talked to said I should have been recieving them. All I wanted to know was how much I still owed, and how much did I owe when they started garnishing me. She gave me a figure of 2400 dollars left. Huh? That would mean I'm paying over $9700??
Then she proceeded to make me all kinds of offers if I paid all right now, she could lower it to $1756, and if I didn't have that much I could make an extra $50 dollars a month for 9 months, and blah, blah, blah.
I read alot of bad things about this particular agency ( Pioneer Credit Recovery), so I was skeptical. My question, sorry to take so long....isn't there some rule or law regarding how much they can charge in interest, and fees? I thought I read the interest couldn't be more than the principal, and the fees couldn't be more than 50% of the interest. Is that correct, or not?
Oh, also she said he garnishment did'nt count as a 'payment' because it's not voluntary. Is that accurate?
thank you
Rxwoman.
|
Linear Mode
