Please Help, CA threatening call today!!!-long post

[gobears_126]

Hello all, I first want to say thank you for all of you help, I don't post on here, but I read this site all the time and has really helped in out in the past.
I am hoping that someone can help me with some good advice.

Here is the situation. I searched the forums at length and didn't really find a similar one.
My wife attended a vocational school in Arizona from June 2003 to Jan 2005. This school was ridiculously expensive and in order for her to attend, the school decided to give her a 8,000+ loan (on top of the normal government student loans that she needed) that was to be paid back after graduation. This is not a student loan from the govenment, or any bank, instead by the school itself. Well, since then my wife graduated the school has been trying to collect on the 8,000 dollars. About 2 or 3 years ago with help for the credit repair forums we successfully had a tradeline removed from a collection agency because the amount on the letter was different that what we had owed. They never verified it and it fell of the credit report. Fast forward to present and a new collector is calling demanding we pay them a crazy amount of money now. They did not report this on her credit, so there really isn't a way to have it disputed again, but they are threatening to take us to court if we don't call back asap.

My question is this... I live in AZ currently and the school is located here. When does the statute of limitations expire on a loan like this? #2) We are avoiding the calls now, but about 3 weeks ago my wife accidently picked up the phone when they called, she didn't really admit that she owes the debt and pretty much told them she will look into it, and told them we can't afford the crazy amount of money they were demanding. Does this restart the statute of limitations? Also I want to call the school and tell them that all these companies are calling with different amounts that we owe and want to verify it that way, will that restart statute of limitations? Also, lastly, since one company deleted the trade line, another must have purchased the debt, can they re-report it again. What are my options to fight this?

Sorry about the extremely long post, but I have no idea how to handle this, our credit is slowly but surely getting better and a judgement of this size will kill us, esp if they start garnishing wages.

I look forward to hearing from someone soon, Thanks again.

[Trish]

Welcome gobears,

Well, one thing I want to mention is that student loans do not have an SOL as far as I know. Since this was a private loan, I'm not sure if that still applies so I can try to check into that (I don't know too much about SLs but I will try to help).

Regardless... a CA still has to abide by the law.. Do you know what CA this is?
If they are being threatening or rude in any way, you need to document it.
Have you rec'd any letters on this? Because once they have had "initial communication" (answering machine messages don't count) then by law they have to send you written communication within 5 days. You need to send them a DV w/limited C&D (there are samples in the beginner's section). That will at least stop the calls and force them to prove that the debt is yours and they have the right to collect on it. Keep a good paper trail and notes on EVERYTHING. If they are being extremely rude then you may want to go and get a cheap recording device to have proof (be sure to check AZ's tape recording laws)

Contacting the school would be a good idea as they can tell you who currently holds the debt and whether it has been assigned or sold. If it has been sold, you will have to deal directly with the CA. If it has only been assigned, then see if you can make some arrangements with the OC. Ask them to recall the debt from the CA and you will work with them directly.

The only way a CA will be able to garnish wages is if they were to take you to court and then awarded a judgment against you (assuming AZ allows garnishment - you would need to check that to make sure).

I hope that at least helps you on your first step.
You definitely need to get out a DV letter to the CA quickly. They can't attempt to file a lawsuit until they validate that debt..... so that will at least buy you some time.

[gobears_126]

Thank you for the response! I am not sure about the student loan SOL either, but I am not even sure this is considered a student loan, but instead just a regular loan. If it were a regular loan does that constitute a written or open contract? I think the difference in AZ is 3 to 5 years. Is that something I could ask the school too, to show me proof of contract that my wife signed. (rumor online through some of the ripoff.com sites and such, is the school doesn't keep records and such on file for whatever reason)

FYI- I used to be an admissions rep for this school, its where I actually met my wife. I quit that job because it was so unethical. Our big "tactic" was whenever we got an out of state student we would tell them that all the finances were complete, they would then move here and we would tell them "oops some of the financial aid fell through" and force them to take out the school "loan." we knew that once they moved all of there stuff out here that they wouldn't want to move back. Also FYI this school has about 30 pages worth of similar stories on ripoff.com.
I am starting to vent sorry, the CA is Avanta USA, I am looking through papers now to see if they sent us anything. If they didn't, what can I do? I will send out a DV letter ASAP and my wife just called the school and left a message.

Thanks again for the response and I look forward to talking to you again soon regarding this and other credit issues.

[Trish]

After looking around a bit, I'm finding private SLs do have an SOL.... it's the federal backed ones (like Sallie Mae) that have no SOL. So that may be a good thing in your wife's case.

How crooked of the school!! Not sure if having that knowledge first hand can help you fight this.....but wow... it may be a card you can play later on if you have to.

I looked and it appears that you can record in AZ w/o the other person's consent...
Also AZ state follows federal wage garnishment..... so that's something you might want to look up when you get a chance.

Definitely send out the DV. Start looking up AZ state laws and the FDCPA regarding the CA. You also need to see if they are licensed to collect in AZ.
If you don't have any letters from them within 5 days of them speaking with your wife, then that's one violation already (just keep track for now).

I will look a little more into SLs and see if I can find out anything else.

ETA: OH and if it's a regular loan, that should fall under written contract.

[gobears_126]

Thanks Trish, you are awesome!!!

I am glad that there is an SOL, however since its up this year, I am expecting some aggresive tactics from the CAs.

Any further info you can give will be greatly appreciated, I am trying to stay out of court for now, so hopefully the DV letter will buy some time, I am truly hoping the school didn't sell the debt. I know for a fact they would settle for extremely cheap and just be greatful that someone is actually going to pay them back!

I will keep you posted as well. Thanks again

Opps one other question... How do I check if CA is licensed to collect in the state. I tried googling it but it didn't say anything like that. Thanks again!

[Trish]

They did not make it very easy to find......but look here:

AzDFI: Collection Agencies

In AZ, a CA has to be licensed and bonded.
Unless Avante goes by a different name (which is possible)......they're not listed in the above link. Hmmmm.....
May want to call up the licensing dept on Monday to see what they say.

Is this the CA? (just want to make sure)
Avanteusa.com

[Trish]

Wow... keep GOOD records on these guys. I have read nothing but bad things about them. Violating laws left and right..... they are not even bonded in their own state.

[gobears_126]

We just recently moved from Wisconsin, I wonder if they thought we still live there, which would explain why we haven't received anything in writing. So if they are not licensed here does that mean they cannot collect on this account, that would be awesome!

I just printed out the DV letter from the link you provided, should I wait until I can figure if they are licensed here?

Wow I am glad I posted this today, I feel some hope!!! thanks Trish

[Trish]

Well, I'm glad you posted too.. Knowledge is power......and sometimes your best weapon against scumbags like these.

You used a DV letter from the beginner's section? Good deal.
Don't forget to send it CMRR and DO NOT sign it. You don't have to wait to see about the license, just get it out on Monday. Watch it online at USPS to see when they receive it and then be prepared if they call AFTER they have received the letter.
Take pictures of your caller ID, record the conversations if you can and/or take notes......keep a log of the time line.

I read a post on another board that these guys kept calling after receiving a DV. So I wouldn't put it past them.