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  1. #1
    Join Date
    Sep 2007
    Posts
    4

    Question Student Loans in Collections

    I'm skipping the long detailed story and just getting to the question/point.

    My student loans are in collections with a company called ACT "account control technology". Anyone have any experience dealing with them?

    My loans have been broken down into a couple different lumps and rather than being handed over to the collection agency in whole so I would only incur penalties one time, I am receiving multiple penalties for each lump of loans that have been handed over....

    Well, in the mess of lumps the collection agency has recieved they have recently sent me a settlement letter. On the letter it clearly lists that by paying a certain $$ amount the ENTIRE (all lumps) account would be considered settled and closed. I sent in the amount and they cashed the check. Now they are saying that they made a mistake and are trying to collect again. Does my proof of the records I have kept do me any good, or am I forced to accept the fact they made a mistake on their offer letter and begin sending more payments?

    If I need to provide more detail I can, but wanted to see what kind of feedback I could generate first.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Student Loans in Collections

    How far off was their offer from the balance? Would it be obvious to somebody receiving the letter that they made a mistake? (Even that might not be enough to save them....) And in what state?

    Unilateral mistakes do not ordinarily provide a basis to escape a contract, in this case a settlement contract.

  3. #3
    Join Date
    Sep 2007
    Posts
    4

    Default Re: Student Loans in Collections

    Thanks for your feedback!

    The entire account shows a balance of 30k on the settlement letter. The settlement was for $800. I have to admit that when I saw it I felt it was too good to be true, however it was an offer I couldn't refuse. I've showed the letter to other people and it is clearly obvious to them also that the offer letter was for the entire account.

    What would be my next step from here?

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Student Loans in Collections

    That is "too good to be true", but you may nonetheless be able to hold them to the deal. Laws are different in each state, and you have declined repeated invitations to identify where this occurred, so you will have to investigate the contract laws of your state.

    You have the option of instructing the collection agency not to contact you, and seeing if they try to file a lawsuit against you. If they do file suit, you can use the letter and proof of payment as a defense - do not lose the letter.

  5. #5
    Join Date
    Sep 2007
    Posts
    4

    Default Re: Student Loans in Collections

    Sorry I forgot to mention the state. It's California

  6. #6
    Join Date
    Sep 2007
    Posts
    4

    Default Re: Student Loans in Collections

    To clarify...

    I live in California, I went to school in North Dakota.

    Anyone?

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