Has any one heard of FMS Inc?

It may not be as big of a mess as you think it is, Luke. See what you get in response to the validation letter. As long as you keep in contact and prove to them that you want to work things out, everything will be fine. And you don't have to apologize, I understand, as does everyone else here, that you are upset. But please...Calm down. You will think so much clearer if you do. we will help you through the whole thing, and then you can help someone else.

Thanks fins, I will. What do you think, should I leave in the cease and desist part, or remove it like cajunbulldog adivesed?

Cajun is right. I think you need to talk to them, probably pretty often. I don't know the status of the account..Like Cajun said, they really could start garnishment..I don't think they would..yet...But they could, it is a significant federal debt. The way to avoid this is to keep in constant contact with them. Show them you want to work this out.

I agree, with you and cajun Fins. Thank you for being patient with me, sometimes this is all so overwhelming. Just when I thought it was all over, I stand here agian. But this time I am not alone, I have you and everyone here, thank God. Thanks Fins.

We are always being tested, Luke. I have faith that you will get through this. We will always be patient with you..Who knows, the time might come when I will need some advice and help too.

have you spoken to a lawyer about this yet? I am sure I heard somewhere that a CA can't start an automatic garnish unless they are colelcting for the feds, and from all I read it sounds like this is a debt being sold off over and over. Why I am so suspicious of this is if they could garnish, then why have they not done so in all these years? Makes me think that I am right and since they 'own' it, they cannot.

Seriously, I would include in the letter that you paid off most of this debt to the last CA and that is why you need the validation and thier right to collect. If they don't and do start a garnishment..take them to court and explain to the judge the situation..that you already paid most of it off so you requested validation of the added 5k in charges and thier response was to garnish...I bet that would solve the problem quickly.

This is a federal debt..But I still don't think they will start garnishment proceedings. If they do, you would have 28 days from your HR dept receiving it to go before a judge. Anyway, I truly believe that the steps that you are taking right now will prevent all that.

It was a federal debt..but now? What exactly is it now? That is why I say he should speak to a lawyer, or better yet, talk to the student loan people, they should definately know. If it is still controlled by them, you can take care of it with them and completely bypass the CA and all the added BS fees they are trying to impose.

This is tough..I handle garnishments for a living, and even when a student loan is with a CA it is still a federal debt. Any federal debt can send a writ at any time, although it has been my experience that they would set up arrangements first. I realize that this was with several companies, but I don't know if this was the company that he defaulted with several years ago. If it is, I can see where the fees came from, the fees and interest over several years on a federal debt can be astronomical. This is in the same ballpark as back taxes. As a matter of fact, at this point, I would bet my paycheck that Luke's state tax return will be taken, regardless of what arrangements are made.

And Luke..I don't think they will be able to take your federal return..Even though this debt is mandated through the dept of treasury, it is still a state loan.

thats good news. I do think that it has been out of the federals hands years, and years ago.

Luke, was this a sallie originally?

Or..was it for a specialty school in your area? For instance, a cooking or massage therapy school..Because if it's one of those, that could change things a lot...In your favor.

No, first it defaulted maybe a few years after I got it which was the later part of 1985. Then it went silent for years. Then a place somewhere down south picked it up called IDAP collected on it for a few years, that defaulted, then a law firm in chicago picked it up in the late 90' which I paid for 3 years, then in 2003 I went chapter 7, even though it was not included, my attorney sent them notice anyway, then I never heard anything since 2003 untill a few days ago. Almost 25 years for a 2,500 loan and I know I paid more than that, I need this to be over so bad.

It will be over..But Luke..Is this for a state funded university? A sallie loan?

Oh well, it doesn't matter, the end result is the same..Nothing you can do until you get validation. So sit tight and don't fret over it!

It was for Control Data Institute in Saint Louis, MO. It was a course for six months to get certified computer programming, and that was it.

gotcha.

I know this is going to be ok even though they are calling me at home now. I am not going to answer untill after I get a response from my validation letter I sent yesterday.

Im checking every day on the UPS delivery confirmation website to see if they recieved my Validation letter yet. They have called several times at home, but a computer leaves no answer. I will not talk to them untill I get a response from the letter.

This has been an update.

Update:
Nothing yet, still waiting for a response from FMS Inc. on my validation letter that they got about a week ago.

Ok...Remember, they have up to 30 days to validate it!

Thanks Fins, I just wanted to keep you all posted on my progress and thank you for being there.

We are always here!! Make sure you keep the updates coming, we are going to be with you every step of the way..We'll be with you so much you'll get sick of us! :D

:shock:

Ok....I have been reading thru this thread and I want to make several points.

1. Federally insured student loans are NEVER sold to attorneys or CA's. This loans are always worked on contingency.

2. When a borrowers files BK, even though the student loan is not dischargable, it has to be listed on the BK paperwork. It automatically goes into BK status and stays there until the BK is discharged. In the FFELP program, loans are often transfered to ECMC, a specialized guarantor that handles loans in BK.

3. Student loans are subject to federally mandated collection fees of up to 25%. However with the age of this loan, I would speculate that somewhere along the line with loan was subrogated by the USDOE...basically the FEDS take over the loan from the FFELP agency and then charge additional collection fee for this of up to 42.84%. FMS is a contractor for the USDOE which kind of supports my theory. Someone thru this thread stated that collection agencies tack on their own fees causing the balance to go up. This is simply FALSE. Collection fees are a flat fee.


4. This is an old GSL loan which has higher interest rate of up to 9%. When payments are made on student loans, it is applied to interest and fees first, then principal. Every so often, interest is capitalized into the principal balance.

5. Validating a student loan. They will send you a copy of your prom note and the claim paid information from the last transfer. It will not contain historical information from day one. If the borrower wished historical information, they have to track it down themselves. They will not send you information on SOL, placement information or anything else.

5. The CA can and will start an Administrative Wage Garnishment if you do not contact them and set up a repayment. No court order required. I used to handle them...easy peasy.

6. Unless you have rock solid proof that a student loan is paid in full, you really have no ability to dispute. Tons of information applicable to both FFELP and Direct Loans can be found at http://www.ed.gov/offices/OSFAP/DCS/disputes.html

7. Federally insured student loans (Staffords, GSL's, Perkins and PLUS loans) and public school debts operate on a completely different platform. Credit reporting on loans is governed by the HEA, Higher Education Act and it overides to FRCA. You never CEASE a student loan collection agency without sufficient cause (fdcpa violations...fully documented or recorded.) Not wanting to work with a CA is not an option. 99% of the time the holding agency will not speak with you. Also, student loans do not negotiate via mail. You must call in as they will not put payment arrangements in writing.

Student loans are very complicated and forever changing. I worked as a student loan collector for a decade and then switched fences by going to work as a financial aid officer at a very large university. I left the industry over 5 years ago to run my own business but I advise on several boards just in case I ever need to return to the field.

thank you soaplady. It is very hard for me to accept the fact that I still have to pay, agian, on this $2,500 loan that I got in 1985 and have been paying on it on and off through IDAP, attorneys, and now a collection who wants over $6,000. Why, I have paid enough, let them gather all that info. for me and see how much I have paid over 23 years, and who knows, maybe they will do the right thing and send me a refund. Your help is very much needed at this time Soaplady, and I hope you do not mind if I tug on your ear throughout this ordeal of mine. Thank you.

I learned something new there too..I did not know that collection fees are a flat fee..

I don't really know how this site works, but we've just experienced a similar experience. A lawyer's office in GA contacted us regarding a 2500.00 student loan from 1987 which my husband insists was paid in full! (Of course now the total is up to $7000.00 with interest and fees!) Somewhere in the conversation "Accord One" was mentioned. Who are the? What are they?
Why has it taken 20 years for someone to follow up? Why hasn't this already gone on my husband's credit record. This just does not make sense? Who on earth maintains financial records from over 20 years ago?How are we going to prove this one? If you get this message, I want to know if your case was resolved and how.

Hello Mevillar.

First I must tell you that our forum prohibits us from posting personal information on the forums (including email addresses) so please refrain from doing so in the future. To answer your question the reason that it has not been posted to your husband's credit report is because the Fair Credit Reporting Act allows creditors to report to consumer reporting agencies for a maximum of 7 years + 180 days from the date of first delinquency or when it is paid off. After this point the trade line from both the original creditor and any collection trade lines must be removed after this period. As to how to fight this, I would suggest sending them a debt validation letter, you can find a good template for it here:

http://www.debtconsolidationcare.com/collection-agencies/better-structure.html#318981

Be sure to send the enclosure in the link following the letter, certified mail, return receipt requested. This will give you proof that they have received it and that you have sent it. Also since this debt is at least 23 years old I'm pretty sure that it is beyond the statutes of limitations which means that it is a time barred debt and if they were to try to sue your husband you could use the SOL as a affirmative defense and motion for it to be dismissed with prejudice.

If you need any further assistance please feel free to ask

I want to say this doesn't make any sense. I have filed bankruptcy in the past and I have had student loans. They have it on my credit report, but you cannot have them listed as included in your bankruptcy. The student loan creditor-then transfers your student loan to your state that you live in the Higher Education Department and they send you defaulted paperwork and that you must start repaying this loan back and/or they will take your refund checks federally and state refunds until such debt is paid off as well-during a defaulted state-I remember not even after my bankruptcy was 4 months discharged I was due back both federal and state and both were taken. If you default on paying back the Higher Education Department they can garnish your wages so quickly. Once you have successfully made consecutive payments they sale your loan to a company. If I was you I would have your husband call your state Higher Education Department. There are a few debts that you cannot ignore for too long and they are taxes, student loans and child support. So if I am missing something here I would think that the original creditor that the student loan was given by is the one that had sold your loan to a CA. I would find out with your state Education department and see if they have record of your husband defaulting on a loan and explain to them he has paid this in full.

wow, this thread is active again after this long. I sent a validation letter to FMS Inc and I had to call a month later to see what there response was. Very rude lady there said "oh, we gave it to Endeavor (?)" I said gave what, what do you mean? She said we gave your account to Endeaver. That was all I got out of her and that was about 6 months ago and nothing. I do check the inquires on my credit reports and I do see that Endeaver is checking up on me. I am not sure what to do either. I know that over since 1985 on a 2,500 loan that I had paid this off at least maybe twice and I am done with it. They will or whoever will have to take me to court, I keep very good records.


Luke

Have problems with them as well in regard to student loan, my only way out was total and permanant disability form which was accepted. Had it not been the interest alone was enough to set me back a few months. Hang in there.

DO NOT VALIDATE THE DEBT. He is obviously a collector that willl stop at nothing to take your last social security check! Can you people not see a con when you read it??? These collectors troll these sites giving information to trap you!! These devils will stop at nothing! Do not fall for it!

Send a letter denying its your debt and then tell them to get lost. They bought an outdated portfolio and they are hoping someone will pay something. I had these bastards try that on me for a loan they claimed I cosigned, although they never did produce a document with my signature on it. The record should all be in your debt consolidation or whatever your lawyer did for you. I am not sure why the chapter 7 did not include this debt but I bet it did and this old account got passed to FMS with a pile of legitamatly uncollected debts. These collection agencies really don't follow up to see if these accounts are legitimate they just mail out these letters and if you don't write back in 30 days to deny the debt they make your life hell if they can, and they will include your children and your work in the harassment.