Im 21yrs old college student and need some help/advice!

First you should make sure they can legally collect from you! You can check to see if they are licensed/bonded in your state, also send them a validation letter to make sure they either own the debt or are acting on behalf of the original creditor. Also ask for a breakdown of the interest and such, then check with your state to see if it is legal.

Alot of the time the threat of court is just that, a threat. You need to deal with this company in writing, always send cmrr so you have proof. Whatever settlement or payment schedule you make, be sure to get it in writing!

how do i find out if they are licensed/bonded in my state? whats cmrr?

cmrr= certified mail return receipt. Secretary of state I think is where you look (at least for me in Texas), your states finance and credit laws should also say if a debt collect must be licensed.

Send them a validation letter, by law you have the right to request this.

ok i have found and edited a pretty good attempt to validate debt letter that i am going to mail in.

1. They could sue you in small claims court but it will not help them much. As a college student you probably have no assets unless someone left you a large sum of money in a will or something. The problem is when the sue you they will win a judgment if this debt is legit but that does not change the fact that you do not have $2,000 in cash laying around. So if they get a judgment they will still be forced into taking payments assuming a judge grants that. If you have no job then a judge would not even force that on you. The only benefit they get with the judgment is that it extends the time period that they have to collect this debt and that varies from state to state.

2. If you decide to pay them you need to first validate the debt and then get what ever arrangement you make in writing. Do not comit to something you can not afford. Make sure that the agreement states paid in full. I would off $100 per month for 10 months starting xxx date upon completion the debt is "paid in full" and the debt entry will be fully deleted and removed from your credit report. This offer or whatever you agree to has to be signed by them. Do not give them access to your bank account ever and do not give them post dated checks. I would pay with a cashiers check or money order and keep record of each payment. You need to keep this documentation forever stapled to your signed agreement. They will try to screw you over eventually by refiling for the debt and this is proof that it was settled and proof that it is to be deleted from your credit report.

3. Again I would try to settle for $1000 paid at $100 per month for 10 months. You will probably have to keep pushing them hard to get this. Keep telling them over and over that you have no money or assets and you can not pay lump sum. If they try to get you to borrow money tell them you have no relatives that will loan money to you and your credit is too poor to borrow money from banks with this on your credit report. I would also send the agreement in writing with your signature and a spot for them to sign and see if they accept it in that form. They need to return the agreement before any payment is made.

In response to goldenbast, my state of Kentucky does not require a collector to be licensed in my state to collect in my state but they do have to be licensed in at least one state. Check your state laws to see what they require unless you live in Kentucky as well.

ok thanks. i just received a call from the guy and he said he would fax me a verification letter and wanted me to go to kinkos or something right now to get it. of course i cannot and he is going to fax me something tomorrow morning at work. he then proceeded with this crap about how he is helping me and how the attorney couldn't care less about me and that he should just send it to county clerk and have the sheriff come after me. he also stated that he couldn't care if i payed him back or not and he is using his valuable time to help me.

when i told him i had already sent a DV letter he asked what that was. when i explained it to him he said he wasn't going to sit around and wait for a letter that it would just be shredded up soon as he got it.

is any of this possible?

I highly bout the collector will even see the letter unless their mail rooms scaned all incoming mail to be viewable on your account.

The only way the sherrif will come after you is to serve you will court papers.

If they wanted or are going to sue you a debt validation/verification letter won't stop them.