Legal Question in Credit and Debt Law in Illinois


I have a question about a private student loan. I had been making electronic payments for years, but apparently, it was sold to another company. I started to receive notices from this company (ACS). I didn't recognize this company, they didn't list a contact number, and when I dug around on the internet, their website required you to supply a social security number to speak to someone so I thought it was a scam. Blogs online said it was a scam company as well.

Anyway, long story short the company really did exist and did indeed buy my 10K private student loan, and then eventually sent me to an "in house" collection agency named NCO. Once I realized they did own my promissory note, I tried to set up a payment plan to pay 10K over 2 years, but they refused! They wanted a lump sum, but I didn't have a job at the time. I switched all correspondence to registered mail. They say I still owe the full 10k even though I sent electronic payments through the bank monthly for about 4 years. I asked them to show me the complete details of the original amount less the payments received so we could agree on a payout price, but they want me to supply a social security number and original account information to the company I made the payments to.

I am confused about why they need all this as I would assume the loan company that purchased the loan would have all that and have given it to them? Should I be supplying this information to them now? What are my rights? I have been very diligent about paying my debts on time, and I'm not looking to get out of anything I owe, but I'm truly baffled by this company's approach and don't know how to deal with this effectively. Should I get a lawyer? Thank you.

Asked on 5/19/13, 10:35 am

1 Answer from Attorneys

Michael R. Nack Michael R. Nack, Attorney at Law

Yes, hire an attorney. I have helped several clients with exactly the same situation and same companies on the collection side. I do require a modest retainer fee, but my clients come put ahead even after paying my fee. Please feel free to contact me!

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Answered on 5/19/13, 6:40 pm

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