Allied interstate told me to stop sending the payment

Tylrsc, be careful of such scary collections from allied interstate. When the dept. of finance is getting money from you, why do you have to stop it and send money to Allied Interstate? Did they prove you that they are authorized for this collection?

I think you should call the Dept. of Finance and inquire about this. They will suggest you the right move.

I would do what ArDen said. allied interstate is in alot of trouble for their illegal collection activities. Contact the Dept. of Finance and tell Allied to take a hike. Only one that would get a garnishment without a court order is the Dept. of Education because it is a federal studen loan.If you are in default have you tried going into rehabilitation with the loan? Or are you already in the rehabilitation program.

This happen some months ago.when I started to send the payments to department of education. about 3months or so later. allied contacted me at work and told me that my default loan was turn over to them by the dept. of education for collection.That's when I ask them why when they have been accepting payments from me for 4 months now. Allied only reply was to pay them or they have the right garnish my check. So to keep them from doing this I started to pay them instead of the department of education.

I felt after reading your first post that you haven't sent money to allied interstate. You were just inquiring about it. But now, with this post, it sounds that you have already done the damage by sending money to Allied Interstate just because you were scared of their garnishment threats. Is that true?

Try calling this number and inquire about consolidating your student loans, you can do this even if you are in default, but you can't if you are in rehabilitation and then defaulted on that.
(800)557-7392
It doesn't hurt to ask and it could save you from garnishment.