 |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |
How to Fight a Creditor About an Illegal School?
Years ago in my youth… I went to a vocational school designed to teach the trade of Medical Assistance. Well I was passing and doing well until the last class, Medical Billing. The Medical Billing teacher quit and the school was unable to hire another teacher.
After making payments directly to the school I foolishly took out a student loan for the remaining $3400 and put a $400 cash payment down. Well after I took out the loan along with several other students the school closed down without notice!
I was out of the money, education and still responsible for paying back the loan even though I didn’t have atransfer transfer with transcripts for another school.
The original loan holder never came after me. I asked for a loan forgiveness considering what the school did and I believed they granted it. The original loan holder sold the debt to a collection agency and now ten years later the creditor is after me for over $4000! After contacting the state and Washington DC I found out the school never existed. The $4000 isn’t enough for a lawyer to fight. The department of education will not get involved because this was never listed as a school loan. After receiving a verification from the collection agency I saw the original contract was made under a retail loan installment with the school’s name on it. No one person’s name is legible on the contract and I have no one to complain to about a non-existant school or business (it was never registered). When I contacted the big credit agencies they verified the loan on my credit once they saw the original retail loan installment contract.
This was a fraud altogether! I have no other outstanding bills and yes I later enrolled in college and I’m almost finished paying off my Sallie Mae loan. However, I can’t get this removed or get the collection agency off my back. If I’d finished the school or dropped out I would pay it back but they closed without notice one morning out of the blue.
Any directions on how I can fight this? Where else can I try?
Thank you.. I welcome all answers!
The original debt began July 2000 so I’m just shy of 10 years.
This is definitely fraud. Contact your states Attorney General, they should be able to help you.
Let them take you to court then show up and explain to to Judge if they are not willing to listen.
DO not promise anything and DO not talk on the phone. It may be depending on the loan and even though it was for a student loan that is is not even collectible any longer.
How many years ago? That debt may be beyond the legal statute of limitations. Verify the S.O.L. for your state. If the debt is no longer legally collectable, tell the collection agency to go pound sand. They are notorious for trying this even though the SOL has lapsed.
Bad news. The lender is not responsible for the fact that you spent the money on something that turned out to be a rip off.
Good news. Ten years is beyond the statute of limitations in all states, so they can’t sue you. After this long it shouldn’t be on your credit report, either. They are allowed to ask you to pay, but they can’t do anything if you refuse. You can legally tell then not to contact you any more.
Derogatory items age off your credit report 7-1/2 years from the date of first deficiency. If this is still showing on your credit report, dispute it as being beyond the reporting period.
The Statute of Limitations (SOL), the timeframe to bring lawsuit, typically starts from the date of last activity or last payment. It is probably long past the SOL. Check your state: .
If it is beyond the SOL, send the collection agency a certified, return receipt letter telling them to cease and desist all contact as the debt is beyond the SOL. They will probably sell the debt off to another collection agency. You may have to send the next collector another cease and desist letter.