student loan default penalties?

[norsewarrior]

Back about 1989 I defaulted on my student loan,which was about $3500, my loan was picked up by a collection agency,about 1994,at that time I owed around $4500.They informed me that they had the right to add an 100% penalty and collection fee,and that I owed them 9000 dollars.I made a repayment plant with interest.The company then sold the loan to Sallie Mae.I have two years left on payments.Now I am wondering if all this is legal?

Originally Posted by norsewarrior

Back about 1989 I defaulted on my student loan,which was about $3500, my loan was picked up by a collection agency,about 1994,at that time I owed around $4500.They informed me that they had the right to add an 100% penalty and collection fee,and that I owed them 9000 dollars.I made a repayment plant with interest.The company then sold the loan to Sallie Mae.I have two years left on payments.Now I am wondering if all this is legal?

Get a validation in writing:

Standard answer on expired SOL and/or validation and/or dispute letters.

SOL
[url]http://www.bcsalliance.com/y_debt_sol.html[/url]

[url]http://www.fair-debt-collection.com/Disputing_Collections/SoL-dispute-letter.html[/url]


Validation letter samples you can get at :
[url]www.creditinfocenter.com[/url]
and [url]www.creditboards.com[/url]


Disputes: You can write a letter of dispute to the three credit reporting agencies.

Go this website to find instructions and samples for how to dispute: [url]http://www.creditinfocenter.com/creditreports/[/url]

Sometimes errors are easy to remove and sometimes they stick like glue. It is inexpensive to try and not difficult.

I am NOT a creditor-debtor lawyer; stand by for further help.

I am NOT vouching for the accuracy of these websites!