Dept of Education/NCO Financial question

[Stressin']

I have my student loan with the U.S. Department of Education (federal loan). Typically, I started to make payments sometime after I graduated in '98. I've weathered a few ups and downs, payments.. non-payments. I've always dealt directly with the Dept of Ed whenever I was late, and I always took care of the problem.
I fell behind again and just last month I got a call from NCO Financial Systems telling me that my loan had gone into collections. She sounded very professional and someone I didn't mind talking to. She said if I didn't pay $1000 within 2 months that my wages would be garnished. Naturally I panicked.. big time. In stupid and scared mode, she talked me into making a $500 payment by check for last month and another $500 payment by check for this month. She also has a few more of my check numbers to make consecutive payments of $150 for the following few months. Reading these boards I'm finding out that is the worst thing I could have possibly done was to give my bank info out like that. Like I said, the idea of wage garnishment put me into serious panic mode!
I'm confused as to what I should do now. I'm learning that NCO Financial is one of the worst collection agencies to do business with. I wasn't harrassed, but now the idea of them having my banking acct makes me nervous. Also, I'm still getting collection bills from the Dept of Ed showing that I need to make payment to them as well. I'm confused, but will call them soon to figure out why.
Has anyone had to deal with issues like this?? What should I do about NCO and them having my bank info?
Thanks for reading this!

[nativechild48]

Hi;
You posted this in another forum and it was answered for you. Again CA's are not allowed to threaten you :!:

[vonniegirl]

...and if your bank is giving away your money without prior authorization from you they are in BIG trouble...so is NCO.

You might have to close your account so that NCO does not take any more of your $$.
NEVER TALK TO A COLLECTOR. Communicate via CMRR...always :!: :!:

[Stressin']

Native & Vonnie - Thanks for your advice!! Iappreciate you taking the time to read my post.

[nativechild48]

:lol: Anytime Stressin; You're welcome :!:
Native

[vonniegirl]

Sure thing :D Keep us informed of your progress :wink:

[Stressin']

Well I talked with the Dept. of Ed. and asked if I could deal with them instead of NCO. I told them that NCO has already violated me twice in regards to the FDCPA, and that I understand that they are the worst collectors to deal with. Also explained that I've already made a $500 payment which shows that I do want to get back on my payment track.
Unfortunately I was told that NCO took over in collections and was told I must now solely deal with them now. They honestly didn't care.

I have a $500 electronic check out with them (NCO) and quite a few others ($150 checks that is) to follow for the next few months. Yes, I was very naive and stupid enough to give them my checking acct. number.. really stupid!! xshotx I'm at a loss now because I don't know what will happen after that. I don't know if they'll start demanding higher payments than that, honestly that is the highest I could go. Is it typical that collection companies will accept long term payments? I owe about $12,000 so I'm looking at 6 years here. If they demand higher payments do you think garnishing my wage would be better? At least they would be allowed to only get about 10%.

Don't know what I should do next.. just suck it up and deal with NCO I guess...

[vonniegirl]

Well I talked with the Dept. of Ed. and asked if I could deal with them instead of NCO. I told them that NCO has already violated me twice in regards to the FDCPA, and that I understand that they are the worst collectors to deal with. Also explained that I've already made a $500 payment which shows that I do want to get back on my payment track.
Unfortunately I was told that NCO took over in collections and was told I must now solely deal with them now. They honestly didn't care.

I have a $500 electronic check out with them (NCO) and quite a few others ($150 checks that is) to follow for the next few months. Yes, I was very naive and stupid enough to give them my checking acct. number.. really stupid!! xshotx I'm at a loss now because I don't know what will happen after that. I don't know if they'll start demanding higher payments than that, honestly that is the highest I could go. Is it typical that collection companies will accept long term payments? I owe about $12,000 so I'm looking at 6 years here. If they demand higher payments do you think garnishing my wage would be better? At least they would be allowed to only get about 10%.

Don't know what I should do next.. just suck it up and deal with NCO I guess...

DEFEATIST ATTITUDE BE GONE :!:

Change your banking immediately so there won't be any other electronic transfers of your money

You have all that you need to deal with NCO right her on the board :D .
Have you sent them a DV...I know they are a federal loan, however, if they are acting as a collector..you treat them as a collector and let them work for you :x Take a deep breath and begin again ok :?: 8)

[Stressin']

:) You're so cool Vonnie!

No, I haven't sent a dv letter because quite honestly I know that the debt is mine. Won't just doing that delay inevitable payments I have to make? But, do collection agencies do long term payment plans? I'm just trying to be realistic on this. Dept of Ed said my wages could be garnished, so when NCO told me such I knew it wasn't a lie. Especially dealing with these Fed. Loans.

Ok.. 1) working on eliminating the defeatist attitude. 2) All the info I need here on the boards.. I'm looking.. I'm looking! XtypeX

Thanks again!

[vonniegirl]

Thanks for the compliment it's just payback because we have all been where you are :)

Your objective is to be able to do long term payments to the original creditor NOT a CA.

No, the debt is not yours unless it is properly validated. And you are entitled to discuss this debt with your original creditor not a ca :evil:

Therfore, you should send a dv as soon as possible and then dispute with the cras at CHOD time. Good Luck and keep the faith 8) .

[Stressin']

Ok, as much as I would like to go back and continue paying the Dept of Ed, they are basically saying it is out of their hands and now NCO is handling everything, EVEN after I told them they violated the FDCPA. I asked if there was anything I could do to go back to the Dept of Ed and they said no. I don't see a way around this. Am I missing a loophole somewhere?

And, being that they're going to take out of my bank acct. via electronic check tomorrow, do you think it'd be wise to do a stop payment on ALL of the electronic checks I approved to them? I can't close my acct. right now because I have automatic deposit through work.

I still need to check into processes of wage garnishment, but I can imagine it'll take time to go through that process and by then they will already have my dv letter and hopefully something worked out. So that actually is not a worry for me. It's just how to figure out how to get the OC to let me go back making payments to them!!

Thanks for the wise words Vonnie... :notworthy: