Legal Question in Credit and Debt Law in New Jersey

I "electronicallY' signed a master promissory note...had to drop out of the online college after about 6 months as my home went in to foreclosure and I could no longer afford anyting. I explained to the counselor that I had to quite and I would be unable to pay for the entire class...then forgot about it--it was about 3 years ago...I printed my credit report and the amount that I am behind is no where near what the counselor told me I would owe...how do I get out of this? The bank, Wachovia, said my balance was zero and they had a master promissory note on file but no amount was listed...the company responsible for collecting the money, ACS, said they only have the master promissory note...the University of Phoenix can't seem to provide the electrnic signature of the amount I agreed to--yet my credit report shows a seriouly deliquent amount of almost $5000.00. A collection agency called and said I needed to make a payment or the gov't would take my income tax refund (if I get one) and they would garnish my wages. I paid half of the over-due balance because I don't want my wages garnished but ASC put me in collections anyhow...please help!


Asked on 1/25/10, 3:20 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Never, never, never pay anything on a debt unless you know the amount due and the basis for it. If you dropped out of school more than six years ago, you may have just started the limitations period running again by making a payment. See http://info.corbettlaw.net/olddebts.htm. Moreover, it sounds as if you have no idea where the money went or whether the collection agent had the authority to collect the debt. Some of these "collectors" are outright scam artists and have no connection with the original creditor. A tip-off may have been the bit about the IRS - no private party can levy on a bank account, asset, or garnish your wages without a judgment and a court order or other legal authority. You would have been notified of a suit against you and of any judgment. Always ask a collector for verification of the debt to which you are entitled under the FDCPA. Be sure that amounts that you have paid have been properly creditied. If there are interest or collections costs added, check the agreement to be sure that these charges are part of the agreement. Get a copy of the assignment of the debt to the collector or the other authority that the collector has. Then, send that copy to the original creditor and ask that they check to ensure that it is legitmate. If the collector is not a law firm, check to be sure that they are authorized to do business in your State. Then, if the debt is sizeable, have your lawyer review the matter and draw up the appropriate papers to be sure that you will not be charged twice.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 1/31/10, 7:33 am


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