Complaint / Review
United States Department Of Education
Selling contracts without authorization to 3rd party collections, such as NCO Financial Texas

After not being contacted for over 10 years on student loans that I had believed were discharged in bankruptcy, I received a letter from NCO Financial, concerning the loans.

Naturally I demanded verification of a contract between myself and NCO Financial, but they have failed to respond within the 30 days as required by law.

Upon further research, it seems the US Department of Education has a habit of selling uncollected Government student loans to these 3rd party parasites. Yet no were in my original contract does it allow for this to happen. Therefore I believe we have a breach of contract.

One of the questions I sent to US dept of ed over the years, concerned a fee that was listed on one of my applications. The fee was for insurance. What insurance, and who was the benificary of said insurance? I never got an answer from US Dept of Ed concerning this. It makes me believe that someone is involved in an insurance fraud, and it might be the US Dept of Ed.

But back on topic, Selling our contracts and debt to 3rd party collections agencies, that then tack on another 5 to 30 percent for collections fees.

Why should any of us, who are experiancing financial hardship have to deal with parasitic personages like NCO?

Under the Fair credit and collections act, We are required to deal with the original creditor, NOT a 3rd party parasite like NCO.

I also found out that some of these loans are growing at a HIGHER rate than some people can afford to pay them back. Monies sent in, even if a small amount is NEVER paid on the principal, so one can get the amount of interest being accrued to be lower.instead, they first apply the amount to cost of collection, then interest, THEN principal. So if you make 48 payments of 50 dollars a month and that doesn't even cover the cost of collection and interest, then all you end up paying over that 4 year period is interest! When does it end?! If you cannot discharge these in bankruptcy, you have become a FINANCIAL SLAVE to the government, who will hound you until you either disappear or die! How UN-American can this get?

If US Dept of Ed refuses to deal with us, it is the same (I believe) as refusing payment, and that invalidates their claim.

Its time we the people stop dancing to US Dept of Ed's sloppy Fox Trot, and make them start dancing to OUR Tune. After all, they work for us, and get their paychecks from OUR tax dollars.