University tution debt

Submitted by Anonymous (not verified) on Mon, 07/19/2010 - 05:02
Forums

I have quite a few current debt issues

Last month I discovered that my due tuition debt has been forwarded to a collection agency. However, the the agency does not have the authority to settle the debt. The debt has not been sold.

The collection agency have added $2,220 in "reasonable collection fees" and have refused my request to negotiate their fee in exchange for immediate payment in full. In my last discussion with the University, where I was told that all transactions relating to the debt must be handled through the CA. I was told that by my act of registration I agreed to pay any collection costs incurred.

If I fail to satisfy this debt with the University within next year, they will not issue my degree.

What I need to know is can I send payment in full via CMRRR for past due balance directly to the University? hoping that they will accept the payment and I can skirt the CA's insane fees. My concern is that this payment will make its way to the CA rather than to the University, and the CA will be emboldened to insist on full 33% fee.

Or can I make minimum payments to the CA, and hope that the CA will settle later?

Can I sue, or credibly threaten suit for damages under FDCPA for unreasonable fee? However, I am unable to find any guidelines for what the "reasonable" is.

What should I do?

Hi Enit,

You have said

the agency does not have the authority to settle the debt. The debt has not been sold.

Later you have again mentioned

Or can I make minimum payments to the CA, and hope that the CA will settle later?

So, if the debt has not been sold, and the CA does not have the power to settle, then later too the circumstances will be the same with the CA.

What I need to know is can I send payment in full via CMRRR for past due balance directly to the University?

If only the university agrees to pull back the account from their collections department, and deal with you, can you make the payments to the University.

Can I sue, or credibly threaten suit for damages under FDCPA for unreasonable fee?

If you think that the CA have added unreasonable fees, you can send debt validation letter to them. If you want to file lawsuit against them on this ground, you will have to prove that. So, you need to have written proof of the unreasonable fees.

Thanks,

Aaron

Mon, 07/19/2010 - 10:42 Permalink