Legal Question in Credit and Debt Law in Virginia

Loan Rehab Program Errors
My student loans are in a debt rehab program. In March of last year, I made an agreement with a collection agency to pay a downpayment of $759.00 and to make payments of $100 once a month for a year. I was told after one year my loans would go back to the Debt. of Ed. and that all record of the defalt would be off my credit report. A caseworker just informed me that the payments I've been making are not big enough for me to end the program and mend my credit. She says I can start making larger payments and start my one year now. She said that the first caseworker was dismissed for incompetence within the first 30 days of working there. She also said that I hadn't had a caseworker assigned to me since that date. I have a contract which states I am to make payments of $100 for 12 months, but it makes no mention of my credit being repaired at the end of 12 months. I am about to buy a house and want this off my credit in April, just as I had been informed it would be. Do I have any legal recourse?

Asked on 12/16/03, 12:41 pm

Michael Hendrickson Law Office Michael E. Hendrickson

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Re: Loan Rehab Program Errors

Probably not, since the written contract makes no reference to the credit repair promise which

was allegedly made to you by the caseworker who is no longer employed with the agency.

Answered on 12/17/03, 4:13 pm

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