Judgement/Freezing Bank Account

Have they got a judgement against you or you are just confirming the options?

Yes, the creditor would be able to freeze the account even when it is jointly hold by your parents and you. Also they can take the entire money out if your parents don???t prove their share in the account before the judge.

If there is still an option available, you must try to negotiate with the lenders before they file lawsuits.

No action has been taken. The account is still with the Collector, but they have just added $1600 to the balance and won't send me anything showing what the extra $1600 is. They just tell me that it is interest. The account was with another Collector that wasn't reflecting any interest in the balance. Now that it moved to a new Collector, they are trying to tell me that it has been accruing interest for the past two years. When I ask for documents that show this, they say they don't have any such documents. I don't want to stop paying on this, but I also don't want to be paying on a balance that I don't owe. I am just wondering what could happen with the account. They are impossible to work with...

Okay, you need to read your loan documents. Third party collectors are normally not allowed to add interest on collection accounts. Respond the collector with a DV and don't pay them before you receive a satisfactory reply to your validation letter. Send the mail through CMRRR and preserve the receipt for future references.