Unfair monthly payments
Date: Thu, 07/20/2006 - 14:54
He denied me the opportunity to make flexible payments by monthly intervals. He also insisted on automatic withdrawals with my checking account.
I refused his requests until today when I requested my debt information from the creditor in full along with a written payment agreement.
He said he would send me the debt information. However, when we negotiated the payment agreement, He insisted on me paying the accumulated interest in full before I make monthly payments. He demanded I pay $300.00 this month and $500.00 the next month.
When I explained that the payment was too high too soon, he explained the interest must be paid in full before I make flexible monthly payments. Is this valid? Are there consumer laws in place that protect my rights. Any advice would be much appreciated. Thanks all.
You will have to prepare your payment plans as per the creditor
You will have to prepare your payment plans as per the creditor offers you. The consumer laws of your state will keep the interest charges on the principal amount within the legal tags. But there are no such rules on the negotiations you finalize with your creditors.
I can say that creditors are much easier to deal with than collection agencies like allied interstate that mostly have disputed accounts. If you can arrange a deal directly with the loan company, things will shape in a better way.
I think Polly can answer you in a better direction.
Also there is an entire forum on this board that is devoted to s
Also there is an entire forum on this board that is devoted to student loans, check it out.
If you haven't gone into the rehabilitation program with the stu
If you haven't gone into the rehabilitation program with the student loan (is there more than one?) You can consolidate them, I have the contact info. to do that if you would like I can pm it to you.
Here is some information that might help
The Income-Sensitive Repayment Plan allows you the flexibility to indicate a monthly payment amount that is based upon your gross monthly income. Payments are adjusted up or down annually as your income rises or falls.
Plan Details
Although the total amount you would repay under this option is generally more than the total amount you would pay under the Level Repayment Plan or the Graduated Repayment Plan, this plan may be right for you.
Under the Income-Sensitive Plan, your monthly payment is equal to the amount of interest due on your loans for the month or 1.00% of your gross monthly income, whichever is greater. Should you indicate a payment amount that is less than the minimum allowed, your lender will give you the lowest payment amount possible.
When you choose this option, you will need to send proof of your current gross monthly income from all sources (i.e., copies of your pay stubs or checks) for income verification.
Payment schedules for this plan are in effect for 12 months at a time. All loan payments are due on the same day of each month.
When your 12-month period is coming to an end, your lender will notify you. At that time, you should review your repayment options and choose the plan that best suits your situation.
If you're thinking about switching your repayment choice to the Income-Sensitive Plan, you may want to review the following resources:
Level Repayment Chart for a general estimate of what your repayments may look like if you left them under the Level Repayment Plan, or the
Repayment Calculator for a more detailed estimate of what your repayments may look like if you switched.
Contact your education loan lender to see if this repayment plan is right for you.
For more valuable information:
Explore the Level, Graduated and Income-Sensitive Repayment Plans.
Learn more about the advantages of Loan Consolidation.
Find out if your circumstances qualify you for Deferments and Forbearances.
Before choosing a repayment plan, read the Repayment Frequently Asked Questions for important details.