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    captain1's Avatar
    captain1 Posts: 12, Reputation: 2
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    #1

    Sep 25, 2008, 10:22 AM
    Collection Agency for Student Loan
    I have received a debt collection notice against a student loan I took out on my daughter. I do intend to pay it when I am able, but in the meantime, the debt collector - General Revenue Corporation is hassling me about starting a payment plan with them that goes on for about a year, then they turn the remainder back to a loan where I can pay it off over a long period like any other student loan. They took some quick info about me over the phone and came up with a random and large amount for me to pay monthly and I am to give them my check information. They claim that if I don't arrange something today, that they will start the procedure to garnish my wages. I am self-employed and do not get "wages". I am not W-2 or 1099; instead I get paid via an invoice to my customer.
    What are my rights here? What can I ask of this collection agency before I give them any information? Obviously they can't garnish my wages, but can they levy my bank account?
    What stage am I in with them? The collection letter looks like any other standard collection agency letter. Please advise me on my next steps.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Sep 25, 2008, 10:25 AM

    If you do not arrive at a payment plan with them, then they will have to file suit and get a judgement against you. Once they do that they can attach your assets.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Sep 25, 2008, 10:29 AM

    But do not, ever, never ever give them your check info over the phone, instead of that 80 dollars there is nothing to stop them from taking 800 if there is that much in there.

    Also don't pay anything unless you get that agreement in writing from them. Pay them with money orders if you are going to pay something before you have a written plan in place.
    captain1's Avatar
    captain1 Posts: 12, Reputation: 2
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    #4

    Sep 25, 2008, 12:35 PM

    Thank you both for your replies. I have not given them my check info and I don't plan to until I do reach an agreement in writing with them. I also re-read the letter they sent. It was dated 9/15 and it gave me 30 days to respond..

    ScottGem - you say that they can't attach any of my assets or levy my bank account until they file suit, then win the judgement?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #5

    Sep 25, 2008, 12:39 PM

    Correct. They have to win the judgement, then obtain a writ of attachment from the court.
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