CA claiming to have a student loan I already paid off

Submitted by Anonymous (not verified) on Thu, 06/18/2009 - 10:22

I have read through the Forum. You people have useful information out here. But my problem is different from others. I am not in debt and don't have any default accounts. I had few student loans from a creditor and I have paid them by debt consolidation. My creditor has also listed individual loans as paid off. But now I have 1 loan which I thought was included in the consolidation program, and a collection agency is calling me to pay off the loan. Now my question is I had about 8 student loans owned by original creditor, so is there any chance that he sold off 1 loan to a collection agency? Sounds ridiculous to me. They also say they can garnish my wages to pay off the loan. Is it true?

Thanks in advance for any help :D

Hi Sallie,

Do you have the loan account (for the one you received a collection call) listed on your credit report as being delinquent? It is unlikely that your creditor charged-off one loan, while accepting payments (through a consolidation program) for the other ones. Is the student loan in question older than the other loans? May be your creditor had already sold off that particular loan, before you entered into the consolidation program.

Whatever the case maybe, you should send a "Debt Validation Letter" to the CA without delay. In reply to your "Debt Validation Letter" the CA will have to provide you with all records of the loan account (including the amount he claims is outstanding). This will prove whether the CA actually owns the debt account.

They also say they can garnish my wages to pay off the loan. Is it true?

The CA cannot garnish your wages without a court order. You will receive the court summons, if the CA brings judgment against you.

Thu, 06/18/2009 - 10:46 Permalink
mmejia (not verified)

I recieved a letter in 2009 saying i have to repay a student that I paid by wage garnishment in 1999. I told them that and they said a new company came in and bought out that company and I am still liable to repay it again. Who do I call?

Tue, 12/15/2009 - 19:24 Permalink

Do you have proof that it was getting paid from your wages? ..and you said it was paid off? Well.........i would ask who this new company is and send them a Certified Letter with your proof of the loan being PIF.

Wed, 12/16/2009 - 21:26 Permalink