My experience with collections

[Clintonista2]

I am a third year university student who is roughly 25,000$ in debt. Each month I have 4 payments to make, two interest payments (one for 28$, one for 50$), one on my computer for 68$ (purchased during much better times), and finally a visa payment for 40$. Now even working 35+ hours a week while going to school full time, I still almost never have enough to make every payment ontop of rent, food, transportation, books, etc. Now for the kicker... each time I miss a payment I get knocked with a 40$ overdraft fee because of insufficient funds.

Because my credit card and two of the student loans were issued from the bank I use, they have the power to lock my savings account when I miss a payment, and they don't miss an oppertunity to do this. I missed a lecture today because my savings account (which has a grand total of 31$ in it) has just been locked yet again, and so my 6$ purchase of bus tickets was declined. Now on Friday I spoke to a "collections officer" and explained that I wouldn't be able to make the payment until march the 6'th. She said no problem, and was very polite about it. They STILL decided to lock my account after this conversation, and it was only removed after I called them and pleaded for them to remove it.

I realize that they have every right to get their money back, but if feels so predatory.

[Oregone]

1. "they have every right to do what they can to get their money back"

Why? Property rights only exist within a society with a healthy and functioning social contract. In these times, those rights are null and void, and only a battered slave would still respect them

[Clintonista2]

2. Because I borrowed the money

And I have an obligation to pay it back.

[Oregone]

4. A personal obligation, but not a universally true one

As I was saying about that battered slave.....

Now, you may have a legal obligation, but that doesn't make it "right".

[Arctic Dave]

5. Then why are you bitching?

If feels predatory because more often then not it is. What are your fees for borrowing money?

[Clintonista2]

10. I'm bitching about it being predatory

I'm not bitching about having to pay the money back.

[4 t 4]

12. OMG , I totally get what he is saying

He is going to make everything right he just needs them to work with him. You know , kinda like the government worked with the banks. Why isn't anyone working with the people like they worked with the banks ???

[4 t 4]

16. You should be standing up for him

All bets are off at this point when it comes to rules and getting your money back. Tell me how ANY of the banks have followed the rules!! He has many good points I stand up for him, not the institutions. You should too.

[Oregone]

19. I don't think you understand. I am standing up for him

And for all workers. The social contract is null and void. Property rights are no longer to be respected in such conditions, whether it be debt or some rich mans factory

[Ozymanithrax]

3. So you have a student loan that must be paid before you graduate?

For many such loans, there is no payment until after Graduation, and then the hurtin' starts.

Credit cards for students are predatory lending at its most basic level. They know students do not have the money, and rarly have the judgement to say no.

[Clintonista2]

11. Interest payments only

Until 6 months after I graduate, which is when I need to start paying off the principle.

[Ozymanithrax]

15. Thanks. Now I understand.

[elehhhhna]

24. that's a sucky deal right there, they don't defer interest anymore?

[elehhhhna]

25. that's a sucky deal right there, they don't defer interest anymore?

[Gman]

6. Open a separate account at a credit union

and just pay your loans from that account. No more locked account. It's not like the bank needs to know about it. And besides, since the bank does sneaky crap like lock your account, why shouldn't you do what you have to do?

[gateley]

7. Are with you with a large bank? If so, seriously consider closing out your

account and moving to a regional bank or credit union who will treat you better.

The banks made BILLIONS on overdraft fees (they should be thanking you, not locking your account!) but I think there are some new regulations in place so they can't do that razzle dazzle any more.

Regardless, if you can, move your account. Good luck!

[sharp_stick]

9. I wouldn't close it

I'd just open up another account and pretend I'm still using Megabank for all my banking needs while actually leaving them the $31 they locked.

[gateley]

14. Delete -- posted in the wrong place. nt

[sharp_stick]

8. Personally I'd be looking at another bank

and I mean right now. Any bank that would lock a $31 account even after a phone call is populated by assholes.

Perhaps a nice credit union would take your paycheck and your current bank would never need to know. I'd just leave the $31 in there and pretend that everything's the same.

[704wipes]

13. Yeah they are trying to make you leave so,

leave, but don't tell them. Come back way later and pick up the $31....

[Juneboarder]

17. I'm a big fan of the Credit Unions, but...

I have also been burned by a local CU in the past. Look for a CU that is smaller and more customer oriented. The one I had issues with was San Diego County Credit Union, and it just happens to be the biggest CU in San Diego County. I am much happier with my new credit union.

If your bank is BofA, Wells Fargo, Chase, Citi, or any of those other big players, then I would get out while you can.

[Juneboarder]

18. I was a collector for 6 years

and am so glad I'm out of that line of work now!! I dreaded going to work and making those calls each and every day. Let me know if you have any Q's... I know a lot of information pertaining to collections and FDCPA (Fair Debt Collections Practices Act)

[Boudica the Lyoness]

20. I knew someone who worked for Bank of America

in customer service for business accounts. She told me if someone missed payments they would take the money out of the business owners personal savings to make the payments. It seemed like they took a lot of money out of the savings account because she had to take calls from crying or angry people saying BOA had taken the money they were going to use for payroll and now they couldn't pay their employees. She warned me to not have a savings account at a bank where you have a credit card.

[gleaner]

21. You seem to be between a rock and ...

a hard place. I don't think what your bank is doing is strictly legal. I have a mortgage with Chase and my accounts were there. They took over WAMU which was the bank I had chosen to do business with. Once when my savings account was nearly empty they took money from my checking account to cover the new fees they were charging on savings accounts that went below a certain balance. They did not notify me and my checking account tipped into overdraft amassing a grand total of check charges at $35 dollars a pop. When I contacted them they told me it was their "right of impound." It was not legal, and they but they did it. I asked when they had notified me because I had never seen anything about it. They told me it was in a booklet they had sent. I had read the booklet and read it again. It wasn't there. I told them to tell me where it was. They couldn't. I have since moved my account to a credit union. I am much happier there. I want to move my mortgage but my house is underwater and I can't, so I am trying to renegotiate under the federally mandated stimulus plan a reduction of the payments. I meet all of the criteria but Chase is sitting on it and stalling even though that is against the law.

My Congressman gave me a number of a person at HUD who is helping me through a local agency. There is a lot of abuse in this program, but the administration did not mandate any kind of oversight until this year. Now I wait and hope I can keep it current.

Please move your money out of that bank. They have no legal way to force you to keep your funds thee. Go to a credit union. They might be able to help you with your loan situation by giving you information on what your bank can and cannot do. Call the house Banking Committee and talk to them. They might have someone to refer you to for help. They or your congressman can give you information on collections of student loans. YOu are working, trying to get an education so that you can be a better citizen and you don't need this nonsense to support the greed of your bank. Please get out of there and see what can be done to help your situation.

[Skink]

22. After moving the account if they ever unlock the funds get a tank of gas.

[create.peace]

23. Are you originally from another country? just curious because of the dollar sign after the amount.

Do you have to pay the principle down after graduation, or after leaving school? What kind of degree and in what field will you be graduating? I ask because you may be better of working for awhile instead of graduating. My son graduated with debt, but knew we had bought a house cash in the 80s we could sell and pay off his debt. I don't know how people pencil out the payback on borrowing for college. Just be glad that you only had $31 in your account.

[deaniac21]

26. Is the senior year when they teach putting the $ before the number?

[Clintonista2]

28. I'm not American

And in my country we put the dollar sign in front of the number. So keep your snarkyness to yourself.

[deaniac21]

29. You didn't answer the question.

[Clintonista2]

30. No, senior year is where they teach you how to deal with E-douchebags

:rofl:

[anonymous171]

27. Moneychangers are scum. Sorry to hear about your predicament.