VICTIMized!

[Haley3]

I am a resident of Florida.

I read an article recently that stated "The law prohibits collection agencies from collecting any amount other than the obligation stated."

ok, back in 1998 I defaulted on my Student Loan and it was sent to a collection agency in Rochester, NY. I received an itemization from the agency which stated the following:
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Amount Referred: $1389.96
Principal Balance: $1389.96
Accumulated Interest: $13.56
Other Charges: $598.74

Account Balance: $2002.26
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I remember asking the agency what the "Other Charges" were for and I was told they were "Collection Costs". I have since paid this debt in full, including the "Collection Costs".

Can I take this collection agency to Small Claims Court to get back the $598.74 that I paid for the "Collection Costs"?
Per the law - I should not be responsible for that amount?


Thanks for the help!

 

[I AM ALWAYS LIABLE]

My response:

Hello again, Haley !

Hey, did you settle your auto accident case ? Was it for more than $12,000.00 ? You never did let me know the final outcome of the settlement.

Anyway, with regard to your school loan question, you should take a look at this site, and read each word very carefully :

http://www.carreonandassociates.com/sl.htm

Good luck to you,

IAAL

 

[Haley3]

Hi IAAL,

Thanks for the information:
"When a person defaults on a student loan, a guaranty agency immediately charges 18.5% for collection costs. The guaranty agency pays a collection agency 2.5% - 3% to collect on the defaulted loan.

When the person enters loan rehabilitation by loan consolidation, the guaranty agency collects that 18.5% on the new note. 20 U.S.C. 1091 requires that the defaulting borrower be charged "reasonable collection costs". There are 57 guaranty agencies and millions of people paid that 18.5%. Do you see a class action to recover unjust enrichment?- End quote-"
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I was NOT "charged reasonable collection costs" I was charged 42% for my collection costs by the collection agency!

Can I still take them to small claims court and recoup some of that money?
as always, thanks for your help!
-Haley

p.s. My settlement was for $5000.00 (please see my posting dated 9-15-00)

 

[Haley3]

IAAL or anyone else, I would really appreciate any help that you can give me with this...
Thanks!

 

[I AM ALWAYS LIABLE]

My response:

Well, I don't practice this area of law (Student Loans), but you're still within your Statute of Limitations on this matter (with one year left).

If the above law is applicable to you, then I would say "Go for it."

You've got nothing to lose by litigating the issue in Small Claims court, and you have everything to gain.

Good luck Haley.

IAAL