College Tuition collections - HELP!

[java2king]

What is the name of your state? texas

I studied in Iowa, and paid off the tution loan with the bank. The university came back to me and asked me to pay them back $2000 in excess tuition credit. I agreed to pay them (my mistake), missed a couple of payments and the univ. sent the balance to collections.

I sent the university one more instalment, which they accepted and that brought the balance down to $1500. The university then advised me that I should send the rest to the collection agency which I refused to do.

I sent the university the balance $1500, which they say have sent to the agency to process. Is that legal? They accepted they payment and then forwarded it to collections?

As far as I have read, the university cannot accept even partial payments after they have sent the debt to collections and by accepting it, they have agreed to the direct payment arrangement.

Please help..they will destroy my credit!!!!

"...TI sent the university the balance $1500, which they say have sent to the agency to process. Is that legal? They accepted they payment and then forwarded it to collections?...."

After you did not fulfill your part of the agreement, the university sold your loan to a collection agency. After they did that, they would not be able to take any money from you.

[java2king]

part of the payment earlier, didn't that mean that they should accept the remaining too?

Originally Posted by java2king

part of the payment earlier, didn't that mean that they should accept the remaining too?

They cannot accept payment from you once the loan has been sold.

It doesn't make any difference who you owe the money TO, just that you pay it.

[MellowCat]

He can pay it to the original creditor if he wants. The collection agency may not like it, but the law allows this. Nothing illegal about what they've done.

Originally Posted by MellowCat

...The collection agency may not like it, but the law allows this....

Cite please.

[MellowCat]

Cite please.


I learned this at a collections workshop I attended.

Can you cite where it is against the law? It may go against the OC's contract with the CA, but the OC isn't doing anything illegal by accepting the debtor's pmt according to what I've been told. The OC would have an obligation to notify the CA that the pmt was received, however. This is where it is in the best interest of the debtor to just pay the CA. Many folks refuse to do this, for some reason.

Originally Posted by MellowCat

...Can you cite where it is against the law?...

As I have said repeatedly on this forum, I am NOT a debtor-creditor attorney. You made a statement about the law. You cannot cite an authority for your statement.

All I am wanting is a cite for your assertion: "He can pay it to the original creditor if he wants. The collection agency may not like it, but the law allows this. Nothing illegal about what they've done."

If you don't know, just say so.

[djohnson]

Originally Posted by seniorjudge

As I have said repeatedly on this forum, I am NOT a debtor-creditor attorney. You made a statement about the law. You cannot cite an authority for your statement.

All I am wanting is a cite for your assertion: "He can pay it to the original creditor if he wants. The collection agency may not like it, but the law allows this. Nothing illegal about what they've done."

If you don't know, just say so.

It's common knowledge. The debt obviously wasn't sold, it was sent to a collection agency. The original creditor still holds the debt and can collect payments. As a first party creditor I do it all the time and I do work with the law.

[MellowCat]

Originally Posted by djohnson

It's common knowledge. The debt obviously wasn't sold, it was sent to a collection agency. The original creditor still holds the debt and can collect payments. As a first party creditor I do it all the time and I do work with the law.

There ya go.