Dispute or ignore??
Posted by ok-401k@reddit | studentloandefaulters | View on Reddit | 24 comments
Hiya, quick question, couldn't find my answer by searching "dispute" in this sub. I've read the sub in the past and that is how I decided to strategically default.
I have over 20K in private student loan debt with Citizens. I began defaulting about eight months ago. I get the emails and mail from Citizens directly asking to settle for like 80% of the debt lol and i have just been ignoring those.
Today i got a letter from a debt collector on behalf of Citizens (appears the debt has not been sold). I have the option to dispute the debt by calling/writing back.
Do I dispute? Does that contact reset my statute of limitations? If yes should I still dispute anyway?
This is not a summons. No cosigner. Never made a payment. Made a few phone calls directly to Citizens before delinquency began. Their payment plan options were still far too expensive for my income. Already deferred payments once.
Thanks in advance. Sorry if this answer was easy to find by searching the sub.
BlarghALarghALargh@reddit
I literally have ignored and thrown letters in the trash for 5 years now, nothing has happened, and I work in the finance industry lmao.
ConsoleModded@reddit
When they asked to settle for 80% did they mean they’d forgive 80% of it if you paid the rest? Or that they’d only reduce the total balance to 80%?
My loans are also with Citizens which is why I ask. I cannot afford the monthly payment anymore and they’re completely unwilling to work with me or even give me a single month of forbearance, so I don’t really have a choice but to default at this point. Just curious what to expect.
morbie5@reddit
Do you have a cosigner on your loans?
ConsoleModded@reddit
Nope. Just me
morbie5@reddit
What is your income and do you have assets?
ConsoleModded@reddit
Assets wise other than my clothes I have my smartphone, my computer and a couple of game consoles. Other random junk like movie posters and stuff. Income I won’t give away fully but I’ll say it’s less than $70k a year.
morbie5@reddit
Well they have no assets that they can really take but they may be able to garnish your wages. I'd play hardball with them tho, I bet you can get the balance down to 50%. What state are you in?
ConsoleModded@reddit
Pennsylvania
morbie5@reddit
Lucky you! Texas, Pennsylvania, North Carolina, and South Carolina don't allow wage garnishment for most private debts.
What state did you live in when you took out the debt?
ConsoleModded@reddit
Pennsylvania lol. So what’s the worst they can do then?
ok-401k@reddit (OP)
Other way around, they wanted me to pay 80% of the debt to settle (so for me around 17k... lol)
I’m really sorry you're in this situation too. I let the phone rep know how much I could afford for a monthly minimum payment and they weren't interested.
I got a bunch of the "we want to work with you :( times are tough :(" form emails before my account went 90 days delinquent. After that the default began and it reflected on my credit report (dropped my score 250-300 pts). Then the form emails and letters from Citizens were all "let's settle!" I ignore those. Eight months in, this is the first time i've been contacted by a non-citizens debt collector.
ConsoleModded@reddit
Gotcha. Dang mine over $100k. 80% would do absolutely nothing for me lol. I appreciate the response though and good luck on your journey.
jonsonmac@reddit
You should always respond to collections notices, you are legally entitled to ask for validation. You have to send a certified letter to the debt collector within 30 days of the first letter, otherwise, the debt is considered valid. If they can’t validate the debt, they have to stop collecting.
ConsoleModded@reddit
Doesn’t this reset SOL though
jonsonmac@reddit
No, payments reset the SOL.
morbie5@reddit
Not just payments. But anything that can be perceived as acknowledging the debt can potentially reset the SOL
jonsonmac@reddit
Asking the collection agency for verification is not an admission to owing the debt, it’s more of a denial. You’re asking the collector to prove it. And if they can’t, they have to leave you alone.
morbie5@reddit
I didn't say it was. What I was saying is that anything that can be perceived as acknowledging the debt can potentially reset the SOL, it isn't as tho making a payment is the only thing that resets the SOL
jonsonmac@reddit
Requesting a debt validation is right under the Fair Debt Collection Practices Act, it will not reset the SOL. And legally, if you don’t request a DV within 30 days, the collector is allowed to assume the debt is valid and continue collection efforts.
https://www.nolo.com/legal-encyclopedia/debt-validation.html
morbie5@reddit
Where did I say it would?
ConsoleModded@reddit
Ah, I thought even so much as acknowledging the debt reset the SOL.
jonsonmac@reddit
You’re asking for proof that you owe the debt, so it’s more of a denial.
Equivalent-Watch9744@reddit
Second this, you have to keep disputing it or they will get a law firm involved. Disputing it will restart the clock on the court/garnishment push
ok-401k@reddit (OP)
Thank you!