New with a question

iVillage Member
Registered: 12-15-2004
New with a question
4
Fri, 12-31-2004 - 11:42am

Hi All,

I have a question about collection agencies. My husband and I are trying very hard to work with this particular agency (Pioneer) andit seems the more we try to work with them the less cooperative they become. They were threatening garnishment of my wages to repay my student loans so we agreed to a sum that is above what they would get from a garnishment but within our budget and this would put the loan on the recovery track and in a year I can start back to school and finish my degree. Then after thinking that we had it all settled they came back and said Nope, not enough...it's either garnishment or around $100.00 more each month (not do-able on our budget). We finally got them to agree to the original sum since it is more than the garnishment we are/were under the impression that they had to accept it. They have also withdrawn the $$ from our bank account (doesn't that mean that they have to accept the terms? I'm so clueless here.) But they keep calling back and telling us that there are paperwork issues and that the deal is off because we didn't fax back a mysterious letter we knew nothing about until they called...ARG!!! I am at my wits end with these jerks and ready to call a lawyer...what do you think?

iVillage Member
Registered: 05-30-2003
Fri, 12-31-2004 - 1:25pm

I'm not too sure about all of this, but I'd recommend a book called 'How to Get Out Of Debt, Stay Out Of Debt, and Live Prosperously' by Jerrold Mundis. In it, there's a section on how to deal with combative creditors.

I think that because it's student loans, they have more leeway than if it was for something like a credit card bill, but I'm not positive on this.

Good luck to you-maybe someone else will have a better idea for you.

Lisa

iVillage Member
Registered: 08-13-2003
Fri, 12-31-2004 - 2:18pm

I'm surprised your student loans went to a collection agency -- when my dh defaulted on his (long story) the government seized our tax returns every year 'til it was paid off. Along with the seizure letter, they forwarded me a form that I could file as an "injured spouse" to gain access to some of the funds they took, but since I wanted that puppy gone, I never filed.

Not sure what to tell you in your situation -- that's a new one on me!

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Fri, 12-31-2004 - 4:48pm

Welcome.

Sorry i don't have an answer to your question. I believe there a msg. board on student loan questions. Perhaps one of the cls would post with the link to it.

MYM

iVillage Member
Registered: 02-14-2004
Sat, 01-01-2005 - 10:42pm
Something here sounds very fishy. For one, no one can garnish your wages unless they have sued you in court and won. Second, there is a state-defined limit as to how much can be garnished per paycheck. And, some states (like Texas) do not allow garnishment of wages at all. If they have not sued and won, then I would report them pronto to the state atty general's office and the better business bureau.
Basically, the quicker the company collects the debt, the more payment they get to keep for themselves. That's how it works, if they collect in 90 days, they get to keep so much of it, and that amount falls as time goes on. So it makes sense for them to pressure you for more. The easiest thing right now is to clarify the legality of this, and don't give them a dime until it is on the terms you need. What more could happen to your credit at this point? Nothing, really. It may also help for you to contact a supervisor of this company, with a formal complaint of deceptive business practices, harassment, etc., to get them to back down. Except for a delay in going back to school, you have nothing to lose and they have the entire owed balance to lose.
Good luck!!