Please Help with DCS said I need $3,000 in 2 days!!

ok, wow....

first, there are fdcpa violations all over this phone call....unfortunately you dont have proof of any of them that would hold up in court. They cant force you to pay before the 30 day window is up--after initial notification to you, they are required by federal law to give you 30 days in which to dispute the debt. during that time they are not allowed to try to force you to pay right now--it is called overshadowing.

The second thing is this--you NEVER want to give this kind of info over the phone to any bill collector for any reason. Legitimate business is conducted every day in writing, and these clowns should have no problem putting everything in writing if they are legit. If they have a problem with that then something is wrong.

When it comes to lying to you, no, they arent allowed to do that--they cannot use any form of deception in the course of collection efforts. That wont stop most of them from doing it anyways, no....but it is against federal law--the law is known as the FDCPA.

The next time they call back, you should tell them that anything they wish to communicate to you must be done in writing, and that you have nothing to communicate with them until you have the chance to review the documentation they are required by federal law to send you within 5 days of initial communication. I would seriously leave it at that and wait for the letter to come. Then, you can dispute it or try to work something out, but more times than not, this tactic of threatening lawsuits when they first speak to you of the debt is a scare tactic.

DCS tried the same hardball tactics with me. Don't believe them. I told them I would call back with the references and then I never did because I didn't want them to stalk my friends and family. I owed $28,000 in a defaulted student loan and she said I had one week to pay the balance in full and that giving her the three credit references was the only way she would allow me to go on a payment plan. Three weeks later she called back and offered me a payment plan of $260 a month. I wish I only had to pay back $3000. Just ignore them until you can save up like $1000 and offer that to them is my suggestion. Keep my posted though as I'm trying to save up enough to make them go away as well.

Well for starters it is not necessary for you to disclose any of that information. It is none of their damn business. If another collector tries to do this to you don't disclose any of it other than you are unemployed and maybe that your husband pays the rent. Don't tell them you own a home or have a mortgage or what you pay a month for it. Don't tell them you own vehicles and how much they are worth. Don't disclose any info about your husbands income and assets because they are irrevelant.

Unfortunately this is a student loan so it will make it tougher to negotiate. Make sure you get their name and address and that you send a DV letter. If you did not get it then you will need to call them back and request it. Tell them you need the address they accept payments at. Do not tell them you are sending a DV letter or they might make it difficult for you to get the address. Do not tell them you are sending payment either just to insure there is no SOL issues.

They made initial contact via phone. They now have something like 10 days to follow up in writing or it is a violation of the fdcpa. Make sure you DV them CM RRR before 30 days after receiving that letter so they can not continue collection activities until they validate. Actually you don't even need to wait for that letter. Just customize the DV letter stating that it is a response to the phone conversation you had on 9-16-08 and you expect to receive written communication in the mail promptly. Also keep in all the other normal items.

Since you do not know anything about this company I would not make any payment arrangements until they validate the loan and validate that they have rights to collect on the loan. At that point I would offer them a payment plan based on what you can afford. Do not let them pressure you into anything. Frankly, they are kind of screwed right now because you are unemployed and basically have no assets. If they sue you then best case scenario for them is you will end up making small payments set by the court. It is kind of pointless for them to sue I think since you are already willing to settle for small payments. I don't think they will have any access to your husbands income or assets in his name.

Thanks so much for all the help. I knew something sounded wrong about telling me that my account is up for review 2 days after contacting me for the first time. I thought they had to give you 30 days to dispute the debt. I'm in Pennsylvania and I'm not sure about whether its legal to record calls or not. I'd love to because this lady was a real piece of work. After I calmed down I realized that they will probably be calling back and accepting smaller payments. The mortgage isn't in my name, it's in my husbands, the truck isn't in my name, it's in my husbands. Technically I own absolutely nothing, have no job and no assets. So I'm not sure what she can reasonably do other than accept smaller payments.

Unfortunately Pennsylvania is a 2 party state when it comes to recording calls. You can still record the call but you have to notify them at the beginning of the conversation. You can simply say "I am recording this call and if you do not comply then you need to hang up and contact me in writing at the address you have on file" or something along those lines.

Now, you can basically forget most of the information that has been stated in this thread. Studen loan collections are different from normal collection activities.

Student loan collectors are required to demand balance in full on demand on first contact . You signed a prom note agreeing to pay the balance in full upon default. If you are unable to pay in full, all of the guarantors require full financial disclosure which includes all household income. Nothing wrong or illegal about that. It is also irrevelant as to whether the debt or the spouse came first....the point is that you owe it. And it is not asset discovery...so the collector did not lie to you.

Is this a federal or private student loan ? Citibank does both FFELP stafford loans and private loans Either way, they do not negoiate in writing. Cease a private student loan and they will take you to court for judgement immediately.

I really dont see any fdcpa violations . Notices with your rights would have been sent out prior to the first call being made . Are you actually disputing the debt?? Did you go to school?? Disputing a student loan will actually increase collection activities as they can easily prove the debt with a simple copy of your prom note.

If this is a federal loan, you have more issues to worry about. Student loans for staters are a double whammy on your credit report. State and federal income tax seizure. When you do return to work, they can garnish your wages without taking you to court.
If it is a private loan and they sue you,they will purse both wage and bank account garnishment.

Student loans are serious debts. Federal ones have no SOL...private one always sue before the SOL runs out. Neither are dischargable in BK. They will haunt you.

I'm not disputing that I owe the loan. I was more than happy to pay it. But demanding $3,000 in 2 days is a little ridiculous. She wouldn't even let me work out a payment plan without that much down. From my understanding Pennsylvania is a non-garnishment state unless it's a government debt. This is a private student loan.

Well dang it Soaplady. You basically destroyed most of my arguments. Kudos.

Anc526 you will have to weigh my post and Skydivr's post against Soaplady's post. Personally I wouldn't disclose any of that personal info no matter what the debt is for. I usually tell collectors I don't own any property and I have a really old car if they really press me. It is a lie but it is not easy for them to verify that info. In your case it would not even be a lie. It would be really difficult to verify because no property is held in your name including the vehicle. Also, I am pretty sure they will accept payments even if this thing ends up in court. That looks like the only option because you have no assets really even if you include your husband????????s items. I would probably offer them a payment plan until they accept it or sue. At that point I think a judge would set the plan. I think worse case scenario is your husband gets a 25% garnishment and you might get income taxes seized. This is not typical for credit loans but since this is a student loan it looks like it is possible according to Soaplady's post.

Husbands wages would not be garnished.

They will take out a judgement even if you are paying on the loan. They do this to protect their interests.

Quote:

Can they attack my husbands trust fund? He has a trust fund that was set up by his Grandparents that he gets a monthly check from. Can they go after that, even though the debt is only in my name and my name isn't anywhere on his trust fund?

My best guess is no but that is a guess. Maybe Soaplady will chime in. If it wasn't a student loan then the answer is no for sure as long as he is not on the credit account.

If pymt from his trust fund is deposited into a joint account, then yes, if they seize your assets/bank accounts.

I'll probably get him his own checking account to deposit that into then. I just wanted to make sure they can't go after the trust itself.

They can't go after your husbands assets period. Your husban has absolutely nothing to do with a loan in your loan. This includes his trust fund. Again they have absolutely nothing to do with his assets.

Keep in mind, any asset that has her name on it is fair game, so if there are joint accounts/assets, those items are subject to claim.

I just spoke with DCS Inc. Collection Agency for Citibank, today about my so called default student loan account balance of $1,500. I was told I needed to pay either 50%-$750 or 33%-$425 within 2 days. If I had that kind of money hanging around the house I would have pay my most important bills first. DCS Inc, never gave me the option to come up with money at all. I tried to explain what I can afford per month but was told that wouldn't be exceptable. I was threaten too that my loan was headed to the courts for further collection. I just read my rights as a consumer and I will definitely follow-up with my lawyer about this collection agency DCS Inc. I don't fell anyone at DCS Inc, has any sympathy or compassion to help those of us in need.

Guest....is this is for a private citibank loan or a federal loan?

If it is in fact a private loan, DCS is simply following the prom note that you signed, agreeing to pay your balance in full on demand. Technically they do not have to give you any opportunity to make payments. Plus private loans do follow up with law suits on a regular basis.

Even with a federally insured loan, you made an agreement to pay your loan in full on demand upon default. The biggest difference however between private loans and federal loans is that federal loan wont take you to court...they can garnish your wages without a court order. So wasting money on an attorney is kind of a waste of time and money....better pay it directly on your student loan.

i cosigned on my daughters student loan for 2000. she was out of work thought it was part of a hardship and ignored the harassing phone calls. long story short theyare suing hern and said it is now 18,000. I was had a bankruptcy and thought it was included. i recieved nothing by mail. Can they take my income tax return? before going to court?

If you cosigned it would be a private loan. Most private lenders do not offer much if any of a hardship...they are not obligated to.
You are aware that as the cosignor they will sue you too? Do they have your correct address and phone number?

Student loans havent been dischargeable in BK since 1989.

And no...they cannot take your tax return.

How can DSC consolidation students loan with you paying $55.00 before receiving application and $50.00 a month for 90 days? That is suppose to clear up your debt.

Guest ...is that a question??

Please be care-ful in regards to DCS. A-lot of the letters are scams.

I have defaulted loans and I was contacted by a DCS consolidation lady that said that if I paid $50.00 and signed a bunch of forms, that I'm staring at right now, that my credit would be in good standing again after a few months. This would put my loans in deferment for a few years until I am ready to make payments again.

I only came online to find the DCS number, and I found this thread, and not much information on DCS.

Is this a scam? I have read all the forms, but seriously, legal stuff just gives me a headache and I don't really understand it all.

Please help. Thanks.

Nope...not a scam. It is called rehab. 9 payments of $50 (if that is what you agreed to) and then your loan is purchased by a new lender. It will NOT automatically put your loan into deferment for a few years....you must apply and qualify for deferments and generally they are only done for 6-12 months at a time. Do a search on rehabiliation.

Thanks.

She didn't say that I had to make 9 payments of it. She said that I just have to make any payment, just to show them that I am trying to make payments. And that if I call a certain number, it will list the loans that I have to pay back, and I can put them all together and start paying them back all together.

Did she mention consolidation??

Maybe you should call them back for clarification.

I beg to differ! My student loan is in default and dcs has put my defaulted loan on a payment plan. The reason why you have to pay that much up front is bc you have to pay by direct debt or credit monthly. I will be starting school in the fall bc I have made 6 consecutive payments on time. I thought they were very helpful :o)

Concerned.....there is absolutely NO requirement to make any payment upfront to do a rehab or to qualify for financial aid. I just hope you understand that you cannot stop paying once you go back to school or until your loan is paid in full or rehabbed.

I use to work for dcs this company treat employees like crap they are so demeaning to the emploees its sad but i saw this if you do not collect you fired.. the employees have to stick to the script they are like puppets some oner should ho undercover and see how degrading the employees are treated and how the employees treat the public and the bounus scale in which the employees must reach or they are fired]

Has anyone had any success with DCS in negotiating acceptance of the original loan amount on a defaulted loan? I am prepared to pay the loan in full, but I'll be hogtied if I'm paying any interest or penalties. They can take the in full payment of the original balance, or they can call me back when they've had time to think it over.

I am assuming you are talking a federal loan?? Aint gonna happen. You agreed to all interest, fees and collection cost applicable by law when you signed the prom note. You do realize they can garnish you wages without taking you to court? And your social security?

You gave them all the info they need to call your husbands employer and hack into your bank accounts. Even the federal government loan people shouldn't be calling your husbands work. How does getting someone fired from work - help these people get any money? Obama can bail out citibank - who just wasted the money - but he can't help the citizens of these country during this time?

Please...get off the political agenda.

As a former student loan collector, we were required by our clients to obtain all financial information for the entire family unit. We would loose the account if we did not.

The government has made the Direct Loan Program available to those with current loans and those in default. You can consolidate and get an income contingent repayment plan based on the entire family income.

stand firm with them, make some kind of counter offer (usually 5% down) then the balance over 24 months and you should be able to get them to settle. they try to scare you but if you call them back within the time frame they ask you to after the initial offer, you should be able to get them to cave. they had me terrified but i stood firm and made it clear i wanted to make arrangements but that was the most i could do.
mine was on a past due tuition bill not a loan though. good luck. don't let them scare you.

Has anyone had any luck settling with this company without a "good faith payment"? I want to and am more than willing to make monthy payments in the range they specify, but I am absolutely unable to save up enough for larger sums they are asking for first even in the next 30 days. I was absolutely infuriated to hear that I have 30 days to dispute the loan rather than the 2 they claimed I had and I will be very upset (understatement) if I have to go into wage garnishment. As far as I was aware, my loans were in forebearance but now I find out that the ownership of my loan has changed (again) and that no longer applies.

ANY and ALL advice will be useful!!!

There is a big difference between forebearance and default. With federal loans, your guarantor pays a claim. This sometimes happens with private loans too. If you apply for forebearance, you must qualify for it and your lender/servicer will confirm that it has been granted. Sometimes this takes some follow up. Now that you are in default, you are no longr eligible for deferment or forebearnace.

Why would you dispute the loan? Student loans can be easily very verified and DV'ing can actually cause a garnishment to start quicker or even a lawsuit started.....you are telling the CA basically that you plan on being difficult.

Ask for rehab....there is nothing in the Higher Education Act that requires that you make a down payment....sure they can ask but they cannot demand.

what is the SOL on private student loans?

I got a thing from these DCS people and they are threatening me that they are going to garnish my wages even though she wouldn't deny the fact that since I do not have a full time job and my husband is not working and is also not collecting unemployment they say that they can take the 15% of my check which would be taking my whole check due to not working full time which for me is less than 22 hours a week. I dont even bring in more than 800 per month. What should I do? or What is she suppose to be doing? She says I can make 50 dollar payments a month and she wants it to start now, but I dont have that kind of money since I am working. I asked if she could just take what I owe out of my federal taxes and she denied that she can even do that when a letter they sent of a Warning Note said something about taking it out of my federal return.

Input Needed NOW!

They would not be taking your whole check...only 15% which would be $120 per month. It really doesnt matter if you work part time, your wages are garnishable. To avoid garnishment you MUST enter into voluntary repayment. If they have sent you the pre garnishment 30 day notice, you must respond within that 30 days.

If you are not in repayment, your taxes will be taken. Taxes being taken are not considered being in repayment but a federal seizure. They can still garnish you and take your taxes. Did the CA send a warning notice on behalf of the guarantor or was the letter directly from your guarantor?

Sounds like the collector was doing exactly what she was suppose to be doing.

so your saying that even though she only brings home before taxes 120 they still can take it i don't think so that is a crock of grap

As long as they earn over$675 per month they can be garnished. She can avoid it by entering voluntary repayment.

Well as I see it right now I had my employer calculate up how much I am currently earning right now and i bring in about 550 a month, which is stupid of course that is why im telling you they can not garnish my wages. Honestly, as my dad would put it....I can not afford 50 a month, but I can afford 25 as long as i dont buy diapers, wipes, formula, etc... if they say that they can't take that low amount screw them because that is their problem then... On another note, I can just do what my mother stated... just not work period... lol as usually haven't been off maternity leave that long in the first place. Guess that is what I will have to do... go figure. Why don't they just take out of my OWF (ohio works first cash assistance that I am getting. On another note again. I did fax a Economic Hardship form the Great Lakes, as the site said even though my loan is at a creditor to go ahead and send it there, because that does state on there that they can not and will not take my wages if i am not full time and full time it said by federal standards is getting 30 hours per week and i only get less than 22 hours a week and i am considered part time. So this is bullshit. This government is going down hill and going down hill fast.

I also agree with dustin because he is my husband and as im seeing it i only bring home about 550 or maybe even less so NO THEY CAN'T GARNISH MY WAGES!

Soap Lady Soap Lady Soap Lady. I neeeeeedd your help. I have two private loans totaling 53,000. I just started a new job and can pay the outrageous 600 a month dcs is asking. Both of the loans are private. can I rehab Them? do I qualify for that 50 a month thing I keep hearing them talk about on this thread? I agreed to give 4,000 down payment. Can I get it lower. What can I do? Please Soap Lady! help me!

Private loans do not qualify for any rehab program since they are not federally backed. For $53k, $600 per month is actually pretty low.

Why don't you go directly to your lender of the loan to pay them and not deal with dcs. My dealings with them are scam.

Guest...you do NOT have that option. The guarantor is the holder of the loan after default, not the lender. The guarantor HIRES the CA under contract to collect on the account. You must work the the CA you are assigned to.

I recieved a call from DCS....it was regarding my student loans. I advised them that I was out of work since June of 2009. I asked them if they would please keep in touch with me and as soon as I had a job I would be glad to get on the rehabilitation program. Well, I filed my taxes and every bit of it was taken....I only had to make payments of 120/mo for 9 months. That is like 1088.00. My tax return was well over that amount. How can they do that? Arent they only supposed to collect on what is owed or in default at the time? And i have not been able to get in touch with them since my tax return was taken. What can I do?

DCS is not a scam...they are a dept of education collection agency. Once you default you no longer have the option to work with the lender...they defaulted you. And your guarantor is the one hiring the CA.