Can internal collections refuse to make payment arrangements?

Question

I graduated from University of Phoenix last year.They say I owe them 3k - I disagree but just want to pay and be done. I have tried to make payment arrangements (with UOP internal collections) for $150 a month until paid off and have paid on time since I made the arrangements but now they are telling me that if I don't pay in full they will send me to an outside collection agency. Can they do this?

Answer 1

Yes, the amount you owe is past due and they do not have to accept payment arrangements. As a practical matter, most will because if they go to court and get a judgment the court will just garnish which amounts to a payment arrangement anyway.

Good luck.

Answer 2

What everyone is saying is essentially true, but I'm surprised that they have been accepting payments, but now suddenly want to change. A collection agency will also agree to payments since their main purpose is to collect in whatever way is successful. Even if they sued you in court for the full amount, if you testified that you'd been making payments and were willing to continue doing so, a judge is most likely to order that as judgement.

Sounds like an employee is trying to flex their "power" to show who's boss. Maybe thinks it will get him brownie points in his office. It won't. Take it up with a higher supervisor and get it restored to the payment arrangements.

A damned good one, I'd think, since it settles the debt in about a year and half. If they try refusing access to a supervisor, then it really is a a personal power issue with them.

Answer 3

Yes, they consider you in default, which means the total amount is due and payable. They will continue to accept your payments but can sell off your debt to a third party collection agency.

They probably don't want to carry the past due account for almost two years and want you to make bigger payments.

Answer 4

Yes. But rather than just "disagree" with them, I'd ask for a statement of account showing all charges to and credits to your account so you can see how they arrive at their figures and if there is any mistake. You need to get the facts.

If you believe there is an error you should file a complaint with your state's consumer protection agency or whoever regulates "higher education" in your state.

Answer 5

They can NOT send you to a collection agency as long as you are paying your debt. Even if it is $1.00 a month.
If you disagree with the amount owed, you can request in writing proof of the debt. They have so many days to respond and if they do not, you could take them to court. A lot of things have to do with this situation to include was it federal student loans etc in which case, they have differant rules. But...here is a link so you can look up laws yourself.
http://www.fair-debt-collection.com/fair-debt-act.html

Section 809(a) requires a collector, within 5 days of the first communication, to provide the consumer a written notice (if not provided in that communication) containing

(1) the amount of the debt and

(2) the name of the creditor, along with a statement that he will

(3) assume the debt's validity unless the consumer disputes it within 30 days,

(4) send a verification or copy of the judgment if the consumer timely disputes the debt, and

(5) identify the original creditor upon written request.

Section 809(b) requires that, if the consumer disputes the debt or requests identification of the original creditor in writing, the collector must cease collection efforts until he verifies the debt and mails a response.

The law prohibits the collection of more than the authorized amount, certain uses of post-dated checks, sending post-cards, and certain envelopes. Violators can be personally sued in civil court up to $500,000!

Collectors are calling about a debt that you believe belongs to someone else or the amount they claim you owe is wrong.
http://www.fair-debt-collection.com/Disputing_Collections/initial-dispute-letter.html

Student loans in default can usually be combined into one low-cost loan with low interest rates and flexible repayment options.
http://www.fair-debt-collection.com/searches/defaulted-student-loans.html

Hope all this helps.

Answer 6

Yes, they can say whatever they want. HOWEVER, since you offered payment arrangements and they refused the payment arrangements, you dont have to pay them a dime. Get a good laywer and take them to court.

Answer 7

"They can NOT send you to a collection agency as long as you are paying your debt. Even if it is $1.00 a month."

Perhaps mrslucke, you can provide us with a link to the appropriate rule, regulation or agency in support of your above claim.

Answer 8

If you didn't have any written agreement with them, they can pretty much do whatever they want. good luck.