Results 1 to 3 of 3
  1. #1
    Join Date
    Aug 2011
    Posts
    4

    Unhappy Debt in Collection Where No Formal Agreement Was Made

    My question involves collection proceedings in the State of: Minnesota

    I am on my last leg here, hopefully someone can give me guidance. I have had one legal consultation before, but they said there was nothing I can do.

    I was attending a public university where I was then carjacked and robbed in late October 2005. I then, in haste, dropped my Spring 2006 classes and transferred to a private University, where I got help from an advisor getting registered for classes and starting in January 2006. In this time, I also moved, etc.

    I had Federal student grants and loans that I had been given for the Public School FOR SPRING 2006. When I switched to the Private school, I had a $5000 scholarship for the semester. I registered for $15,000 of classes (unbeknownst to me at the time).

    PROBLEM: Something went wrong with the verification process for my FAFSA once I got to this Private school. By the time I found out about it, classes were almost a month in, and there is little to no refund at that time. I also tried in the meantime to get private student loans, but without a co-signer at age 18, it was pretty much impossible (my parents had horrible credit after a bad lawsuit stemming from my dad's Sole Prop business a few years before). So I never ended up with ANY aid, and by the time I found out I couldn't qualify for any loans on my own (even asked relatives to co-sign, but as oldest grandkid and niece, etc, nobody wanted to set the precedent of signing onto student loan debt).

    It also doesn't help that at the time, I was going through severe depression and a physically violent relationship, for which I went to get treated at the school's nurses station.

    I withdrew from almost all of my classes, with the intention of switching back to the public school (which I did).

    I had been talking with an advisor at the Private school, who, from when I spoke to him, I had believed had reassured me that because I couldn't get aid + the drama + couldn't get any loans, he would see what he could do to just make the debt disappear, especially since I wasn't taking any credits with me back to my public school AND couldn't get loans on my own.

    TURNS OUT I WAS WRONG. Or at least, this is what a debt collector tells me, almost 5 years later. I got nasty letter after nasty letter, in big bold letters, telling me if I didn't pay on this $10,000+ balance I still owed to this school, my credit would be trashed and they would take me to court.

    I had had correspondence with a dean in the business office trying to resolve this.... however, he then retired on me!!!! When I didn't hear back after a few months, I tried to contact the private school again to try and resolve this WITHOUT a debt collector, but the new lady said there was nothing she could do, after reviewing my case.

    The debt collector said he'd report me to the credit bureau immediately, when he finally found my phone number (which had never changed in the 5+ years). Over the phone, he said if I didn't pay, I'd be ruined. I gave him my checking account number over the phone for a mere $100, but told him I couldn't afford $250/month on top of all my other student loan debt and bills and rent. He didn't care. He said I had two months before the $100 goes up to $250. I then closed that checking account and began submitting $100 cashiers checks.

    I was then told by a legal counsel that statute of limitations was 6 years!! I was only a few months away from this being noncollectable.


    SO MY QUESTION IS THIS..... I was never contacted by the school after I left there. I never knew they were collecting. I tried to resolve it. Then I also realized that I never had a formal agreement to pay. Apparently another agency "tried" to collect this debt before (never saw any letters, nor phone calls and address and phone never changed)

    Does the University have to be able to reproduce documentation that says I agreed to pay them??

    I am just at a loss right now and obviously student debt doesn't go away in bankruptcy. The school was unwilling to work with me and these debt collectors keep sending me letters and harrassing me. What happens if I just stop sending letters? What can they do then, legally?

    Is there any way I can make this go away?? I am actually now back in school and TRYING to finish my degree, but this debt is burying me and I got NOTHING out of it!

    Please help.

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Debt in Collection Where No Formal Agreement Was Made

    When you registered, you enacted a formal agreement to pay. When you made a payment, prior to the statute of limitations, you likely reaffirmed the debt, even if it would not ave expired from lack of collection attempts. It is a valid debt.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Debt in Collection Where No Formal Agreement Was Made

    You admit that you enrolled in the school, signed up for classes, did not withdraw from classes until "", and despite your assumption that somebody else might make your debt go away, did not follow through to determine if that was possible or if it happened. I expect that if you ask for some type of accounting of your debt, you may be able to get such an accounting, but there's no reason based upon what you've told us to expect that the debt will magically go away if you demand documentation. You're past the thirty day window for verification. If they sue you they will have the burden of proving the debt in court, assuming you don't admit the debt, and you would be able to obtain documentation through discovery, but they're not presently suing you.

    If you are considering bankruptcy, you should be talking to a bankruptcy lawyer. From what you've written you appear to be talking about an overdue tuition bill, not a student loan - there's a big difference. If you did not sign a promissory note in association with the tuition debt, odds are it's dischargeable.

    1. Sponsored Links
       

Similar Threads

  1. Student Loans: Multiple Debt Collection Letters from the Same Collection Agency
    By dmez01 in forum Debts and Collections
    Replies: 2
    Last Post: 07-12-2011, 08:29 PM
  2. Never Had a Formal Visitation Agreement - What Now
    By LetsGoDodgers in forum Child Custody, Support and Visitation
    Replies: 11
    Last Post: 05-04-2011, 05:16 PM
  3. Foreclosure: Collection on a Foreclosed Junior Loan from Debt Collection Company
    By cocoa in forum Buying, Selling and Conveying Real Estate
    Replies: 4
    Last Post: 03-31-2011, 06:44 PM
  4. Drunk and Impaired Driving: Can an Agreement Be Made with the Prosecutor
    By tmn in forum Drunk and Impaired Driving Charges
    Replies: 5
    Last Post: 09-03-2009, 11:09 AM
  5. Eviction Process: Must You Evict, With No Lease Agreement or Formal Payment Record
    By maddyatl in forum Landlord-Tenant Law
    Replies: 1
    Last Post: 06-01-2007, 09:19 AM
 
 
Sponsored Links

Legal Help, Information and Resources