I'm being ripped off!! i owed 4,500 on tuiton. I just received a collection letter for $19,000. What can I do?

Question

I owed $4,500 in tuition. Because of late payments, my account was charged off to a collection agency. The agency letter charged me $12,000 +in tuition and $6,000+ in collections fees to give me a total of little over $19,000. What can I do? This isn't fair. Plus being that this has been reported to the collection agency, this will appear on my credit report which is already in bad shape? Help!!!! I'm desperate.

Answer 1

A lot of the times the collection agency is actually partners to the loan agency. Check the addresses of the bank that gave you the loan and the collection agency. There is a good chance they are in the same building. My girlfriend defaulted on her loan of 10k and it went to a collection agency. She dug her way out of collections to be rewarded with an even better offer. For the 10k loan she will end up paying over $25,000.00. Either way you look at it, you are screwed. If you say screw them, they will garnish your wages. This is a lose/lose situation for you. Our educational system blows.

Good luck, my gf is dealing with the same bull.

Answer 2

Something doesn't sound right. What "agency"? You need to give us more facts.

But to insinuate it will be their "fault" if your credit is further effected is ridiculous. Have you been in touch with the agency from day one when you were late with the payments?
Communication is the best way to handle credit problems.
Did you read your loan papers? Nothing here should be a surprise to you. If it's not spelled out in the loan forms you have a case. if it is.... you didn't do your job to read the contract.

Answer 3

Ask them to provide details of each charge.

Dispute the fees and surcharges.

Work with them to reconcile the issue - many times they will settle at 10 - 35% of the actual charges.

The key here is to COMMUNICATE COMMUNICATE COMMUNICATE with this collector.