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Charging Interest on loan in collections

Submitted by on Sat, 04/27/2013 - 08:29
Posts: 202330

I co-signed for a student loan for my son. I have since gone bankrupt - chapter 7 - bankruptcy has been discharged. The loan was not in the bankruptcy. The day after my bankruptcy discharge they turned this loan over to a collection company. The collection company is charging interest. (How do I find out what interest rate they are allowed to charge or if they are allowed to charge interest) I have made payments as well as tried to come to an agreement for a lump sum settlement. They will not accept what I have offered. It is now with a 3rd collection company. I am dizzy trying to figure this out. The 3rd company stated the 2nd company reported I did not make any payments. I have all documentation of the payments I have made. I was told I had the right to send a letter to the collection company requesting I wanted to deal with the Investor directly - Is this possible? Seems to me I need an Attorney, however I can't afford one. I am physically and mentally exhausted dealing with the phone calls and letters. Thank for any help or direction.

The collection agency is not charging interest....the loan holder is. They report the interest to the CA. Your son will need to call to find out what the interest rate is....will be the same as what you originally signed for. And no, you cannot deal with the hold owner/holder....they have a contract with the CA for them to collect.

Your loan is in default...payments are not report like a current account...the balance may go down (if you are actually paying enough to cover the interest) but payments are not reported posititively.

Really there is not much an attorney can do for you. Private loans will settle but it is up to them for as to how much. Most lenders would rather sue the borrower and cosignor to cover the entire amount.

Why is your son not dealing with this??? It is his loan and credit being destroyed too.

Submitted by SOAPLADY on Sat, 04/27/2013 - 15:52


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