West Virginia.
This is an odd situation,
I went to school here in WV at a tech school. I had three loans, two federal and a third one that was odd. It was called a STAR loan. For some reason, I was paying $50+ a month to them and they payed $7 to the school a month. I would get letters from the school asking for payment for the amount the STAR loan was set for. After about year and a half of payments I lost my job and was unable to pay. The STAR loan had no option for forebearance and after two missed payments they dropped me and I was reffered to a collection agency.
Around late 2003 I got regular and polite calls asking if I could pay. They where very supportive to my plight of being unemployed. At the turn of 2004 I stopped hearing from them. Two weeks ago I get a letter for the amount due from some company I never heard of. So, I assumed they bought the debt and I would have to deal with them. I just now got a new job (though I had a few between then and now, but no means to contact the original collections agency.) I called them today to try to set up some payment plans. They pressured me into beleiving the only option I had was to set up six payments of $580+ a month. I was told this would be the only way to "satisfy the client". I accepted the plan fearing I would be hounded by phone calls and letters. Then they pressured me saying that the only way to "satisfy the client" again was to give them a method of automatic debit by wither bank or credit card. I realize now I was an idiot for giving them that information. What I hope to do is send them this letter once I know for sure I cannot afford the amount they demanded.
START
Dear Sir or Madam,
This is in regards to an amount owed of 3530.87 on the account of XXX – XXXXXXX. In response to a letter received from you on May 12th, 2006, a phone call was made on May 30th, 2006 in attempt to negotiate a form of payment plan. The plan of $583.33 payments at the end of each month was agreed upon after being told that I had no other option.
After a period of unemployment, a new occupation was acquired which started on June 1st, 2006. At the time of the aforementioned agreement, I was not aware of the exact amount of compensation I would acquire from the new position. Upon realization of the amount I received, I regret to inform you that the amount of $583.33 is impossible to pay. I have made a good faith payment of $30.87 on June 5th, 2006 as a sign of my desire to settle this debt. I still wish to make payments on the amount, however, so I would like to make an arrangement of a monthly payment of $150 a month.
During the initial conversation I gave information on my debit card under the pressure of believing that I had no choice. It is my request that the plan to charge my card $583.33 at the end of each month be removed along with all records of the card information. I intend to make the payments mention before at the same schedule, however I do not wish for them to be automatic payments.
If an agreement can not be reached over this matter I will be forced to contact the bank in which the card belongs to and block payments. I do not wish to resort to this, however. I would have never given the information to set up an automatic debit had I not been pressured during the phone conversation under the pretense of not being able to set up monthly payments without the information.
I wish to convey my sincere desire to settle this debt. I hope an agreement can be made on this situation as I can assume that it is neither your, nor my desire to resort to litigation over this matter. As another sign of good faith, the first payment of the proposed amount has been included with this notice.
With regards,
END
It was suggested to me to start at $150 because they might be more willing if I can compromise to $200, which is doable. I've read that the best way to communicate with these people is through letters. Is there anything I should change about this letter? Is there any advice for my situation?
Thank you.
This is an odd situation,
I went to school here in WV at a tech school. I had three loans, two federal and a third one that was odd. It was called a STAR loan. For some reason, I was paying $50+ a month to them and they payed $7 to the school a month. I would get letters from the school asking for payment for the amount the STAR loan was set for. After about year and a half of payments I lost my job and was unable to pay. The STAR loan had no option for forebearance and after two missed payments they dropped me and I was reffered to a collection agency.
Around late 2003 I got regular and polite calls asking if I could pay. They where very supportive to my plight of being unemployed. At the turn of 2004 I stopped hearing from them. Two weeks ago I get a letter for the amount due from some company I never heard of. So, I assumed they bought the debt and I would have to deal with them. I just now got a new job (though I had a few between then and now, but no means to contact the original collections agency.) I called them today to try to set up some payment plans. They pressured me into beleiving the only option I had was to set up six payments of $580+ a month. I was told this would be the only way to "satisfy the client". I accepted the plan fearing I would be hounded by phone calls and letters. Then they pressured me saying that the only way to "satisfy the client" again was to give them a method of automatic debit by wither bank or credit card. I realize now I was an idiot for giving them that information. What I hope to do is send them this letter once I know for sure I cannot afford the amount they demanded.
START
Dear Sir or Madam,
This is in regards to an amount owed of 3530.87 on the account of XXX – XXXXXXX. In response to a letter received from you on May 12th, 2006, a phone call was made on May 30th, 2006 in attempt to negotiate a form of payment plan. The plan of $583.33 payments at the end of each month was agreed upon after being told that I had no other option.
After a period of unemployment, a new occupation was acquired which started on June 1st, 2006. At the time of the aforementioned agreement, I was not aware of the exact amount of compensation I would acquire from the new position. Upon realization of the amount I received, I regret to inform you that the amount of $583.33 is impossible to pay. I have made a good faith payment of $30.87 on June 5th, 2006 as a sign of my desire to settle this debt. I still wish to make payments on the amount, however, so I would like to make an arrangement of a monthly payment of $150 a month.
During the initial conversation I gave information on my debit card under the pressure of believing that I had no choice. It is my request that the plan to charge my card $583.33 at the end of each month be removed along with all records of the card information. I intend to make the payments mention before at the same schedule, however I do not wish for them to be automatic payments.
If an agreement can not be reached over this matter I will be forced to contact the bank in which the card belongs to and block payments. I do not wish to resort to this, however. I would have never given the information to set up an automatic debit had I not been pressured during the phone conversation under the pretense of not being able to set up monthly payments without the information.
I wish to convey my sincere desire to settle this debt. I hope an agreement can be made on this situation as I can assume that it is neither your, nor my desire to resort to litigation over this matter. As another sign of good faith, the first payment of the proposed amount has been included with this notice.
With regards,
END
It was suggested to me to start at $150 because they might be more willing if I can compromise to $200, which is doable. I've read that the best way to communicate with these people is through letters. Is there anything I should change about this letter? Is there any advice for my situation?
Thank you.