Taxes and the CA
Date: Sat, 03/17/2007 - 15:40
Allied sent me a billing statement and a form requesting personal information such as SS# and employment and banking info. Allied insisted this info was required to complete the validation process. I never filled out the form and some 7-8 months later, Allied has yet to validate my defaulted loan.
Since August of 06, I have made voluntary monthly payments to the US Dept of ED. In Febuary, I received a letter stating the amount of Student Loan interest that should be reported to the IRS.
I disclosed the SL interest information to my tax preparer but she insisted there was one more piece of information that was necessary.
She informed me that a similiar letter must be provided by the Collection Agency. She explained that even though I never dealt with Allied, an account interest statement must be provided by Allied to complete the tax filing process.
I absolutely dread the thought of dealing with these shake-down-artists. They never complied with my requests before, what makes me think they'll do it now.
Could anybody please provide some helpful advice before I deal with these scoundrels again? Thanks.
Fire your tax preparer and use online companies listed on the IR
Fire your tax preparer and use online companies listed on the IRS website. They don't require nonexistent forms. allied interstate does not own the account. Their lawyer told me they are strictly a third-party debt collector; they never buy the debts. That is why they never actually initiate lawsuits. Without recovering interest payments from you, AI will have nothing to report.
Interest paid statements come directly from the US Department of
Interest paid statements come directly from the US Department of Education.
Keep in mind that if you do not have an approved payment plan with the CA, they can still garnish your wages. All payment plans on defaulted student loans require that the plan be agreed upon by both parties. With a C&D on your account, that is more likely to happen.
Thanks you!
Thank you Texaslawyer and SoapLady for your responses. I wasn't sure if I had any options to other than dealing with the CA.
Your comments will help me make an informed decision. Thanks again.
Another thing.....you could have had your account out of default
Another thing.....you could have had your account out of default by as early as next month had you talked to the CA. There are options for defaults that you have to work with the CA on like rehabilitation and consolidation.
It has always been my opinion that you NEVER C&D a student loan CA....they have too many options at their disposal. They can garnish and the guarantor can offset your tax return if you did not meet the conditions set forth for getting off that list. Normally guarantors set requirements in late summer and inform their vendors usually in September. The CA's will then call and inform borrowers. Same goes for admin wage garnishment...since you don't have agreed upon payment plan and their is a C&D on the account, there only option now is to send a notice of garnishment directly to your employer. Student loan collections is NOT like normal collections and open lines of communication is of huge importance.
They should already have your ss#
Any bill collecter that calls you and ask for your social is b.s.They called you that means they have all your info in front of them.
Quote:Any bill collecter that calls you and ask for your social
Quote:
Any bill collecter that calls you and ask for your social is b.s.They called you that means they have all your info in front of them. |
Brenda....this is not BS with student loans. These are federal defaults that go by SS#. A collector is not suppose to state the SS# they have on file for security purposes. The borrowers is expected to repeat it.