Student loan

I just recently have been contacted by a collection company for an old student loan and they would like me to start a new repayment plan. I agreeded to all this and then they asked me for direct access to my checking account. When I asked about the paper work on the new payment plan they said that this company will only send it out after the first payment is collected. They wanted to set up an automatic withdraw monthly. I then asked about the terms of the amount they were to collect on the principal and interest and for how long. They did not have any specific answers and they said that due to the time constraints they could only send the paper work to me in the mail after the first payment was collected. I then asked them to fax or email me the information and they said that they were not "Customer Service".

My questions are, are they play ball according to what is allowed by banking and fair credit law? Don't they have to make clear to me in writing the terms of this new agreement? And because they are ammending the terms of the original debt that I have the right to first read and then sign the new agreement?

By their responses I feel skeptical about how they are doing business and have an instant dread about their tactics.

I am really looking forward to eary reply on my problem.

I would like to thank you in advance,

Gaters101

Something sounds fishy!!!

I hope you didn't give them your checking info!! Anyone who can't give you specific answers or anything in writing is definitely suspect in my book!

How old is your student loan? When's the last time you paid them? Might be important for statute of limitation (SOL) issues. If you're approaching the SOL, they might be trying to get a reaffirmation (right term?) of debt. Give them a single payment or written verification and the clock starts over...

You might want to do an archive search for "student loan". (Top of your screen there's a "search" button.) I can't give you specific or legal advice, but I have seen good advice here in the past...

Also, check out the collection forum. I've seen similar stories there too.

Good luck!!!

student loan

justathought,

I thank you for the information you posted for me and I reposted in "Collections" to see if I can get a a definite responce to my position and what is allowable.

I also did not give the collectors what they wanted.

Thank you again for you help,

Gates 101