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Hi,

Okay, I have a question regarding collection agencies and credit reports.

Scenerio: In August of 2006, I enrolled in classes with a private college in Ohio. At that time, I was told that the tution would be paid by student loans, but one week into the classes the Financial Aid Director called me and said the student loans had fallen through and I would need to pay $3,100 for the tution. I told the guy that I did not have that much money and could not afford the classes, but he said that I still had to pay the tution. Basically, he said the school would be loaning me the money and I would have to reimburse them through future payments. Well many years past and on occassion, I would get a phone call from different collection agencies wanting me to pay them for the tution charges, but I always refused because I truly feel that I was misled. On most occassions, they would threaten me with a lawsuit and garnishments, but they never filed. In 2009, I moved from Ohio to Florida, and started a new job with better pay. Keep in mind outside of the collection agencies calls, I never had any other issue with this debt. I the spring of 2012, I decided to purchase a home in Florida, my credit scores were all in the high 600's, so everything looked good for a loan. At th every last minute, I gota surprise, the collection from the school popped up on my credit report nearly 6 years later out of the blue. It's almost like they knew I was trying to buy a house.

Question 1: On the credit report it states that the original start of the debt was August 2006, so will it then fall off my credit report in Aug 2013?

Question 2: The original debt was for $3100, but now they have jacked it up to be about $7500, so is there anything I can do to fight this extortion?

Question 3: I really do not want to pay this debt, as I feel they misled me about the tution and they handle this in a very unprofessional way, so is there anything I can do to fight back?

I have challenged the debt with the credit reporting company and they said that it is valid, but all I got was a summation of al lthe charges with no proof of my liability. I would really like to buy a house, but if I pay $7500 to clear this debt my downpayment is trashed. Anyone have any ideas on what I can do?




1. Yes, it should drop off from your credit report by August next year or at least by the end of the year.

2. This is not extortion. Its just 5 years worth of interest tacked on to the loan principal.

3. There is really now way to fight this conclusively. At one point some collector or the other is going to take the pain and sue you. In 5 years 3.1K became 7.5K. Imagine what you would have to pay 10 years from now if you get sued.

Sub: #1 posted on Thu, 10/11/2012 - 00:56

Steve Barris Steve Barris

(Posts: 1045 | Credits: )

You owe the debt...when you enrolled in the school in the school you signed a financial responsiblity contract. There is nothing in that contract that states "I will not have to pay if my student loans dont come thru". Since it was only one week in, did you officially withdraw that day???? What school was this?? I need to look thru their withdrawal policy.

Sub: #2 posted on Thu, 10/11/2012 - 03:42

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17310 | Credits: )


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