Account Control Technology, Inc. Debt Collection Complaint

Account Control Technology, Inc. Debt collection department,

Federal student loan False statements or representation Attempted to collect wrong amount Colorado

After leaving school & subsequently defaulting on my student loans 10 years ago, I recently sought to begin repaying my student debt. Per ed.gov website instructions I contacted student loan manager at the school holding the debt on my Federal Perkins Loan, who then referred me to the collection agency now responsible for resolving the [ - - ] debt. The collection agency in charge of my Perkins Loan insisted that in order to resolve the Perkins Loan [ $7600.00 ] debt I must " Consolidate '' all of my [ other ] outstanding defaulted student loans with them. I declined and specifically requested to " Rehabilitate '' only my defaulted Perkins Loan with this agency now in charge of the Perkins Loan debt. The collection agency refused to offer me " Rehabilitation '' on my Perkins Loan at all, and again insisted that my only option was to " Consolidate '' the debt. I declined, and that was the end of the conversation.


Rehab '' the loan, the agency was trustworthy. One day later the collection agency called me back and I was advised that in order to " Rehab '' my Perkins Loan I must accept a minimum payment of $ -/month. I declined again as I simply can not afford that payment. Again I immediately contacted ( by email ) the student loan manager at the school explaining that I have been out of work for an extended period of time and I can not afford such a high payment, and requested an appeal or other process to reduce what I am being told is a mandatory minimum payment to " Rehabilitate '' the Loan. The student loan manager emailed me back stating that the collection agency is correct, the minimum payment possible in order to " Rehab '' my Perkins Loan is $ -/mo. I researched the issue of repaying defaulted Perkins Loans on the Dept. of Education website here : - ( page -- ) and found that the DOE requires schools to offer repayment of defaulted Perkins Loans " sufficient to satisfy the outstanding balance on the loan within a 10-year repayment period. '' This was directly contradicted to me several times in email & phone conversations that I had with both the collection agency and the university student loan manager. Further more, on the Consumer Financial Protection Bureau website " Repay Student Debt '' page here : - it states that defaulted Federal Student Loan borrowers `` have the right to set your payments based on how much money you make. Your payments can be as low as $5.00 per month if you are unemployed or have very little income. Your debt collector is required by law to offer you this income-driven rehabilitation payment plan. '' I realize this ( $ -/month ) policy may not be specific to Perkins Loans. My complaint is that a ) the collection agency has been intentionally dishonest regarding my repayment options ; b ) both the collection agency and the university 's student loan manager continue to insist to me, on the phone & by email, that my minimum " Rehabilitation '' payment must be significantly larger than that indicated by the DOE 's published regulations regarding defaulted Perkins Loans, despite knowing that such payments would cause significant " hardship for the borrower '' [ me ], and in direct contravention of the DOE guidelines ( see - page -- ).