My question involves collection proceedings in the State of: New York (current)/ California (2 years ago)
What is the name of your state (only U.S. law)? New York / California
Today I decided to get my free 12 month credit report from the government. I went to the website, put in my info, looked up my delinquencies, and saw that I had 6 complaints from Sally Mae, and 5 from California Student Aid Commission. Confused, I called Sally Mae, and was told that CSAC (insurer) had paid off my debt, and now was handling the money.
Now I remember I took out two private loans from Wells Fargo (on which I am currently making monthly payments), but I was under the impression that further money I received for school were grants from the state and federal government, not loans from Sally Mae. Since the day I graduated, I have heard nothing about this second loan, only from my original Wells Fargo private loan, which I have been responsible in paying back!
I called CSAC (eventually making my way to Ed-Fund), and found out over the last year and a half, I had defaulted on 4 loans, totaling $24,860!!! According to them, Sally Mae tried to contact me for a year, and eventually turned the amount over to Ed-Fund, who on June 29th called my loans in "default" and were about to put "attachments" on my taxes and income, had I not "decided to check my credit score" and call in!
I have had ZERO correspondence with Sally Mae, or Ed-Fund. They had my correct address, telephone number, even the number and address of my brother, and claim they have left messages, and called. Neither my brother (very responsible, family man who always answers his phone) nor I have ever received calls from either of these firms.
Ed-Fund gave me 3 options.
1) pay the ammount in full - which I just can't do
2) put a downpayment, and make monthly payments for 10 months, clearing my default status, and hopefully attracting a bank to buy the loan from them, restoring my credit - What I agreed to do
3) pay nothing and allow Ed-Fund to "attach" themselves to my livelihood. - I will not do this!
I'm assuming there is probably around 2-4 thousand dollars in this sum that is now late fees and interest.
My question is:
Can I do anything legally, to defend myself against this cloak and dagger collection?? If I had not called to investigate these delinquencies, my credit would continue to suffer, and I would be further in debt! If they can "attach" themselves to my wages, how can they not get a hold of me to tell them that I owed them money? I feel like I should be protected against interest I had no idea was accumulating. I called today, and immediately tried to setup payment methods to stop the downward trajectory of the situation. Obviously I would have taken the same measures if I knew I owed money sooner!
Can anyone shine some light on this issue from a legal standpoint? Can I settle? Are there options? Can I have the interest waived? Can I reverse the effect this has had on my credit? Please help, I'm having a bad day here!
Thank you!
Mike

