Credit fix from college scholarship

[Conan the Librarian]

Hi guys. Long time lurker. First time poster.

I need help in the credit repair department. This is a first time thing for me.

I just got declined for a loan. Come to find out, something JUST showed up on my credit. It is $1500 from college, in the year 1999. Normally I would just pay it and get it over with, but this situation is "b.s.".

I started college in 1999. I had a 75% scholarship from the state. I paid for all of my junk with a personal check (which was discounted 75% from the scholarship).

I ended up dropping a few classes and not continuing. Apparently, they wanted their 75% of that discount, back from me cash. Well,they never told me this. Matter of fact, I started community college four or five years later and wrote my old college for my transcripts becuause I did pass some classes. They didnt send me transcripts. I dropped out of community college (yes im a loser x 2) and forgot/didnt care about the transcripts.

Here it is, 2009. They are saying that since it was reported in 2009, it will be on my credit until 2016.

I would pay it if I wasnt broke as a joke. Since they want to lie about **** though, I say, why dont I save 1500$? I only owed $900. The rest is interest.

Any help guys? I have no clue where to even start?!?! Any help would be GREATLY appreciated. Since they want to play games and jack me up for $600 interest while lying about the time it happened, I say that's MY money.

[Conan the Librarian]

Bump? Posted a while ago. I know it's a long, convoluted problem I should be able to fix on my own, but hey, you guys seem to know everything any help?

Pretty please?

[jendoe]

Hey Conan,

Yikes - sorry, I'm not sure what to say. I know it's a really long shot, but do you have any paperwork from back then? I'm not sure I understand how it is that they gave you a discount, but then decided to "take it back" since you didn't finish (it sounds like they're charging you an extra fee for not finishing, which sounds awful fishy to me). I'm just thinking if you had some paperwork, and could show that the chance of losing the discount wasn't disclosed, maybe it would give you a way to argue it?

I don't know if it would work, but the other option is to call them, tell them you have no money, and ask if they can "settle" with you. I've heard of people doing this with credit cards - not sure if it works here - but basically it's saying, "OK, I owe you $1500, but I can't pay that. Rather than me paying nothing, you having to send it to collections, where you certainly won't get the whole amount, can we agree to an amount that works for both of us?"

So you tell them, "hey, I understand I owe you the original $900, but the extra fees weren't disclosed to me, and it took you 10 years to even let me know I owed anything. Would it be possible for me to just pay the original amount, and call it even?" (You should obviously be nice during all this, since sometimes admin types will go out of their way to help you if they like you, and if you're clearing working with them - and not do a thing for you if they think you're a jerk!)

If you do settle - you need to insist on some sort of documentation that the amount is paid in full, and that you don't owe anything else. (I think you need a letter like this before you pay). That way they can't come back later and say, "oh no, you still owe us all this interest plus some new interest".

That's all I've got, and I'm going off what I've read online - no personal experience and I'm certainly not a lawyer or anything... but I hope it helps somehow!

Good luck...

[Conan the Librarian]

Hey, thank you so much for the response.

The only paperwork I have at this point is "proof of debt" where they show what I owe on a computer screenshot.........and it is dated 1999. I thought the whole 7 year thing, you know?

Oh, and my next question would be, how does it look on my credit to settle?

What would look best on my credit? Pay them everything, Settle, or fight it out to save my $1500, which by the way to my broke butt, is a kings ransom.

[jendoe]

Hi Conan...

Sorry - I wish I had better advice for you... it's just a bit far from my expertise. Since you're broke, I'm guessing a lawyer is out of the question...but maybe one of those free credit counseling places might be able to steer you in the right direction (the good ones, which are free - not the scammy ones that make you pay to supposedly "fix" your credit, which can't be done!)

That - or perhaps one of the financial boards? I like reading the fatwallet forums (though I've never posted there, it looks like there's a lot of great advice) and clarkhoward forums.

Fatwallet Forums - Hot deals, finance, freebies, more
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Hmm... do you get clarkhoward (on the radio, and I think he has some show once a week on CNN now) where you live? He's into consumer protection type stuff, you might be able to contact his folks for help...

Here's the page that has his phone numbers on it, but I'm not sure if you can only call during the show, or how that works:
About Us on clarkhoward.com
(Outside Atlanta = Toll-free: (877) 87-CLARK (25275))

I think it can be hard to get through, and I thought there used to be part of the website that told you when his "team" was available to help... I can't find it now, but maybe if you call, or poke around on the site a bit. They could at least give you some advice about the best way to handle it.

If you get to talk to them, DEFINITELY ask about the 7 years thing.

(BTW Clark used to work as a debt collector, at one point in his life, so he always seems pretty knowledgeable about they can/can't do.)

Good luck, I hope you're able to get it resolved!