Selling off Loans and Perpetual Debt
GREENSVILLE, TEXAS -- The selling off student loans and the perpetual Debt Skam.
Is the American government at war with its own people? You might think so after this.
After not being contacted for over 10 years on student loans that I had believed were discharged in bankruptcy, I received a letter from NCO Financial, concerning the loans.
Naturally I demanded verification of a contract between myself and NCO Financial, but they have failed to respond within the 30 days as required by law. Then again, over the years, most 3rd party collections agencies fail to respond properly when faced with the situationt that they have to validate their claims.
Upon further research, it seems the US Department of Education has a habit of selling uncollected Government student loans to these 3rd party parasites. Yet no were in my original contract does it allow for this to happen. Therefore I believe we have a breach of contract.
Go back and re-read that. The US Dept of Ed, is selling your debt, to another party and is forcing people to deal with 3rd party collections agencies, (aka parasites) for whom the debtor has NO contract with, such as NCO Financial, whom has a VERY VERY bad reputation. The reports on this company that I am finding on the internet, cleary shows theya re one of the biggest violators of the Fair Credit and collections act. Not to mention the stress and out right rudeness of its workers when they call people on the phone.
The US dept of Ed's procedure of selling debt to 3rd party collections agencies, is, in my humble opinion, a clear violation and conflict with the fair credit and collections act.
Under this act, A debtor must deal with the original creditor, UNLESS the original contract contains a clause that allows the original creditor to transfer the debt/contract to a 3rd party. This happens in most home mortgages. However, with student loans, I am not sure.
I do know that the latest Paperwork sent to me from US Dept of Ed, contains NOTHING other than a written address where I can contact them. All phone numbers shown on the letters belong to a 3rd party collections agency that I refuse to do business with.
The crime here is that the US dept of Ed is violating the fair credit and collections act, by forcing people to deal with parties which whom they hold no contract. Not only is that a violation of law, but of the Constitution's 13th amendment of involuntary servitude.
The reason US dept of Ed is doing this, is because they refuse to deal with the fact that many people in the USA suffer financial hardship. And cannot pay their loans the way US Dept of Ed wants them to.
Any other loan, if filed on for bankruptcy can result in the debtor paying as little as 2 cents on the dollar, or having the contract declared void. But not so for debts owed to the government. Not unless you are totaly disabled and depend on others for your mere survival, I.E. they have to spoon feed you. Either that or you are dead. Only then will they eradicate their claim of indebtness against you.
And the whole time the interest keeps piling up. Soon your payments won't even cover the basic interest. And by that time, its too late. Unless they are willing to stop the interest, you will be forever paying it off. You cannot pay on the principal until you pay the interest. PERIOD. They won't allow it. You cannot even send in a conditional payment.
One of the questions I sent to US dept of ed over the years, concerned a fee that was listed on one of my applications. The fee was for insurance. What insurance, and who was the benificary of said insurance? I never got an answer from US Dept of Ed concerning this. It makes me believe that someone is involved in an insurance fraud, and it might be the US Dept of Ed.
But back on topic, Selling our contracts and debt to 3rd party collections agencies, that then tack on another 5 to 30 percent for collections fees.
Why should any of us, who are experiencing financial hardship have to deal with parasitic personages like NCO?
For example, I just got off the phone with a place called Costal Solutions Debt Consoldiation company. They proposed a 36 month settlement, at a cost of 500 per month for 36 months. For me, 500 is my home/rent payment, that representes 2/3rds of my take home pay!
Being a dead beat that is refusing to pay your debts is one thing. Being financially unable to, is another, and its these people that the 3rd party parasites attack the most.
Under the Fair credit and collections act, We are required to deal with the original creditor, NOT a 3rd party parasite like NCO.
I also found out that some of these loans are growing at a HIGHER rate than some people can afford to pay them back. Monies sent in, even if a small amount is NEVER paid on the principal, so one can get the amount of interest being accrued to be lower. Instead, they first apply the amount to cost of collection, then interest, THEN principal. So if you make 48 payments of 50 dollars a month and that doesn't even cover the cost of collection and interest, then all you end up paying over that 4 year period is interest! WHEN DOES IT END?! If you cannot discharge these in bankruptcy, you have become a FINANCIAL SLAVE to the government, who will hound you until you either disappear or die! How UN-American can this get?
If US Dept of Ed refuses to deal with us, it is the same (I believe) as refusing payment, and that invalidates their claim.
Its time we the people stop dancing to US Dept of Ed's sloppy Fox Trot, and make them start dancing to OUR Tune. After all, they work for us, and get their paychecks from OUR tax dollars.