NCO and Department of ED

[blkmw]

Hello all..

Need some help...NCO is threatening to start garnishment proceedings on me on dec 02 2005, less I send them a payment 399.99. This is the monthly payment they have calculated. When I went into bankruptcy last year, I did a hardship deferment with all of my loans, us dept of ED, didnt get any paperwork, so now I am in default.. need to start payments. This lady from NCO is telling me I need to send 399 monthly for 12 months, Itell her I cant afford it. so she tells me she needs to do a full financial assesment. which I thought they did in order to get the 399.00. evidently they took the loan balance and divided it by 12 and got thier payment. not taking into fact other bills and student loans I am paying. now she is saying they need to a real financial assesment, I thought the first one was? So she asks me, "what is your rent per month?", I tell her my mortgage is.... , why did I do that??? all of sudden the financial assesment means nothing and she wants me to refiance my mortgage to pay the lstudent loan. I tell her that I filed for chapter 7 last year and it would be hard...she says she knows someone who could help me. I tell he I dont think so, my credit is very bad...she insist I contact novastar mortgage..
sounds like a racket..

[Genenco]

Well, unless they get a judgement against you (And they have to go through court, notify you and other stuff) they cannot garnish anything.

However, I'd get ahold of the lawyer and see what you can do to deflect them...There was a post a little while agio regarding NCO which they are VERY nasty.

[SleeplessInMI]

Garnish threats are a common scare tactic used. I mean if you are already having financial problems the last thing you want to hear is that someone is going to take part of your paycheck. I don't think it is right that they act like if you don't send a payment today then they will start garnishing your check next Friday.

Back when I had problems with creditors threatening me with garnishments I told them to put it in writing and mail it to me explaining how they are going to garnish my paycheck. This made alot of them stop the garnishment threats... don't know for sure, but I think they can get into hot water for making those claims (giving you the impression that they can garnish your wages whenever they feel like it).

[Minnymouth]

Garnishing wages will not get you in trouble - THREATING WILL...... thats why they back off......

They have to get a court order and that cost money...

Minny

[tracy1878]

we've been in your boat before, we had defaulted student loans, or I should say hubby did. NCO did garnish us, until we reached a settlement payment plan. Then after a year, they claimed that the payment plan was only good for 3 months and they filed to take 20% of hubbys paycheck. That was when we contacted directloans, if you google it you should be able to find it. We refi'd all 4 loans with them, stopped all threats of garnishment, and the payments are based on your income.

this worked for us, hopefully it will for you too.

If you don't do something, they WILL file to garnish your wages, it's not an empty threat. the first time they took 15%, then when they refiled the garnishment order, they were asking for 20%, the maxium allowed by law.

[tracy1878]

should have added this... we refi'd before our bankruptcy, when our credit was really really bad, you should be able to qualify, especially if you can prove their actions will cause you a hardship

[tinroofrusted]

Garnishing wages will not get you in trouble - THREATING WILL...... thats why they back off......

They have to get a court order and that cost money...

Minny

You say that, and I automatically think of American General Finance. They start a garnishment procedure three months after you stop paying. Where are they getting all the money for all of these lawsuits?

It's crazy!

[SleeplessInMI]

Where are they getting all the money for all of these lawsuits?

Just seen on the news the other day that CC and Finance companies make an average of $14 Million per year on just interest, late fees, over the limit fees, and all whatever fees... alone. This is not including the regular principal payments.

So they make their money and then some.