What is the name of your state (only U.S. law)? Michigan
My husband and I got married in 2013 and when we went to file our taxes in April 2014, we received notification that our Michigan state tax refund was being held to pay a debt. We had no idea what this was about and upon investigation found out that there was apparently a student loan in his name from about 8 years prior. We had been completely unaware of this debt and thought it was a mistake so we wrote a letter asking for verification that this was actually a loan that he had taken. We were also told that since we were disputing the loan, we would not accrue interest in the interim while the matter was being investigated. The loan was apparently through a MI loans or MI Loans-backed program and I believe the collections agency is called Michigan Guaranty Agency. I called to follow up on the matter and was told I would have to wait to receive notification and that it could take up to a year.
This week, a year and a half later, I received another call saying that my husband needed to set up a payment plan for this debt (or wages will be garnished). They indicated to me that they sent notification of the original promissory notes, but we never received those either. As I spoke with the lady on the phone, I was able to get some information from the original loan documents. It sounds as though the address they had on file and had sent correspondence to over the last 8 years were my husband's parent's old house. They also had an extended family member's name on the loan documents. At this point, we think his parents or another family member took the loan out in his name and he probably signed not understanding what they were. Our issue is that he never once in 8 years received notification that this debt was owed until our taxes were withheld. They did have his phone number on record but have never called. We only began getting correspondence after the 2014 taxes were taken and I updated contact information with them and have been trying to resolve the matter. In the last year and a half alone an additional $2000 of interest accrued; that is not to mention whatever amount has accrued over the last several years that we did not know this thing existed. The amount they say we now owe is over $18,000!
My question is whether we have any recourse for the interest that has accrued on this debt and the fact that it is now on my husband's credit report (which I still haven't checked). The debt apparently went to collections in 2012 which is why it then showed up on our 2013 taxes. Can we fight the interest? Can a loan like this that is federally granted/backed be settled? Can we get this removed from his credit report? Shouldn't the agency have attempted to call the number on file? How can we pay a debt we don't know about? It seems like there has to be a way for us to settle this thing, but I have no idea how we go about this. Any help would be greatly appreciated!
My husband and I got married in 2013 and when we went to file our taxes in April 2014, we received notification that our Michigan state tax refund was being held to pay a debt. We had no idea what this was about and upon investigation found out that there was apparently a student loan in his name from about 8 years prior. We had been completely unaware of this debt and thought it was a mistake so we wrote a letter asking for verification that this was actually a loan that he had taken. We were also told that since we were disputing the loan, we would not accrue interest in the interim while the matter was being investigated. The loan was apparently through a MI loans or MI Loans-backed program and I believe the collections agency is called Michigan Guaranty Agency. I called to follow up on the matter and was told I would have to wait to receive notification and that it could take up to a year.
This week, a year and a half later, I received another call saying that my husband needed to set up a payment plan for this debt (or wages will be garnished). They indicated to me that they sent notification of the original promissory notes, but we never received those either. As I spoke with the lady on the phone, I was able to get some information from the original loan documents. It sounds as though the address they had on file and had sent correspondence to over the last 8 years were my husband's parent's old house. They also had an extended family member's name on the loan documents. At this point, we think his parents or another family member took the loan out in his name and he probably signed not understanding what they were. Our issue is that he never once in 8 years received notification that this debt was owed until our taxes were withheld. They did have his phone number on record but have never called. We only began getting correspondence after the 2014 taxes were taken and I updated contact information with them and have been trying to resolve the matter. In the last year and a half alone an additional $2000 of interest accrued; that is not to mention whatever amount has accrued over the last several years that we did not know this thing existed. The amount they say we now owe is over $18,000!
My question is whether we have any recourse for the interest that has accrued on this debt and the fact that it is now on my husband's credit report (which I still haven't checked). The debt apparently went to collections in 2012 which is why it then showed up on our 2013 taxes. Can we fight the interest? Can a loan like this that is federally granted/backed be settled? Can we get this removed from his credit report? Shouldn't the agency have attempted to call the number on file? How can we pay a debt we don't know about? It seems like there has to be a way for us to settle this thing, but I have no idea how we go about this. Any help would be greatly appreciated!
