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  • Report: #311604

Complaint Review: Diversified Collection Services

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  • Submitted: Sun, February 24, 2008
  • Updated: Thu, April 03, 2008

  • Reported By:Upper Darby Pennsylvania
Diversified Collection Services
P.O. Box 9049 Pleasanton, California U.S.A.

Diversified Collection Services - Citibank - US Dept Of Education Have paid twice what was originally borrowed, still "in default" due to usury Pleasanton California

*Author of original report: DCS Refuses to process rehab paperwork

*Author of original report: They also refused to accept my payment arrangements

*Author of original report: They also refused to accept my payment arrangements

*Author of original report: They also refused to accept my payment arrangements

*Author of original report: They also refused to accept my payment arrangements

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I am a single, disabled mother who returned to school several years ago to better support my children. I had a total of 3 student loans for approximately $5,000 made through Citibank. When I graduated, Citibank sent me a single statement with a total of $105 per month due on all 3 disbursements, requesting a single monthly payment. I began paying between $140 and $200 per month. Citibank applied all this to a single loan payment, and caused 2 disbursements to go into default. I was forced to consolidate at a penalty of 25% due to their bookkeeping error. Unfortunately, they only consolidated 2 loans; I began paying the consolidated loan not realizing they had forced the original good loan into default through this.

Over the years, this has compounded to a total debt of $20,000, even though I began paying the loans right out of college. Last year, my total tax refund of $5,870 was kept as an offset, and my refund is scheduled to be kept this year even though I have now made 9 monthly payments and this loan is rehabilitated. Because DCS refuses to update my credit report, I am unable to obtain an FHA mortgage to replace my home, which burned down, causing me to lose everything I owned. I had asked for a forbearance/deferral when I was unemployed for 18 months, which was granted but was not reflected in how my loan was handled.

Sallie Mae worked with me and forgave two of the loans; I have a letter stating this, but DCS which is the collection agency, refuses to accept it. My current balance is still almost $7,000, with another $1,000 in penalties payable to DCS.

If a private company did this it would be considered usury; but because it is the federal government, it is allowed.

My credit report is ruined because of their errors. At one point I had over 20 loans with a balance of $50K due to these 3 small student loans. I am making regular payments; however, the practice is not to update the credit bureaus at all until a year has gone by. This is ridiculous as I am making regular monthly payments, over what was agreed to, in advance of the due date each month. DCS reports that I have not made a payment in over 5 years which is totally incorrect, and of course lenders look at this as though I am a deadbeat. By the time I am done, with interest and penalties, I will have paid $25,000 on $5,000 in student loans. They still threaten regularly to garnish my wages, even though I am paying under the rehab agreement.

The government refuses to do anything, as they say I have to work with the lender. Unfortunately, the lender is their assigned collection agency, and they are raking in the dough.

I wish this was a solitary story but I know way too many people in similar plights.

Collegegrad
Upper Darby, Pennsylvania
U.S.A.

This report was posted on Ripoff Report on 02/24/2008 01:43 PM and is a permanent record located here: http://www.ripoffreport.com/r/Diversified-Collection-Services/Pleasanton-California-94566-9049/Diversified-Collection-Services-Citibank-US-Dept-Of-Education-Have-paid-twice-what-was-311604. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Author of original report

DCS Refuses to process rehab paperwork

AUTHOR: Collegegrad - (U.S.A.)

As of 3/15/08, DCS has had certified funds for my ninth payment; my loan should now be officially rehabilitated. I never allowed them to remove funds from my checking account.

I have called 4 times to obtain info for sending my next payment only to be told each time they have not processed the rehab paperwork yet.

In one week, I must send my new payment - I have met all the rehab requirements but because this stupid collection agency won't process the paperwork they have had for 3 weeks, I may end up late again.

What a ripoff
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#2 Author of original report

They also refused to accept my payment arrangements

AUTHOR: Collegegrad - (U.S.A.)

I think that NCO Diversified may be related to Diversified DCS.

When I wanted to make repayment arrangements, these people refused to accept them, wanting to go through automatic debits on my checking account. Because I was the victim of identity theft from Commerce Bank 3 times in one year, I refuse to allow anyone to make withdrawals from my account.

The official student loan site edu.gov states that payments must be made within 20 days of the due date for 9 consecutive months, in order to rehabilitate a loan. I sent certified funds via wire, contacted the omnubudsman at the edu.gov site, and continued to make my payments. I also filed a report with the FTC on them. At this point, the government is recognizing my payments. For NCO stating that the payments have to go to them, this is a bunch of malarky because if you look at the official government web site for the address, and the NCO address for payments, it is the same PO Box, and you still make payable to US Dept of Ed if you are paying NCO.

The government does not require that a downpayment be made to enter a repayment agreement. I have heard many people state that the collection agencies try to force this.
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#3 Author of original report

They also refused to accept my payment arrangements

AUTHOR: Collegegrad - (U.S.A.)

I think that NCO Diversified may be related to Diversified DCS.

When I wanted to make repayment arrangements, these people refused to accept them, wanting to go through automatic debits on my checking account. Because I was the victim of identity theft from Commerce Bank 3 times in one year, I refuse to allow anyone to make withdrawals from my account.

The official student loan site edu.gov states that payments must be made within 20 days of the due date for 9 consecutive months, in order to rehabilitate a loan. I sent certified funds via wire, contacted the omnubudsman at the edu.gov site, and continued to make my payments. I also filed a report with the FTC on them. At this point, the government is recognizing my payments. For NCO stating that the payments have to go to them, this is a bunch of malarky because if you look at the official government web site for the address, and the NCO address for payments, it is the same PO Box, and you still make payable to US Dept of Ed if you are paying NCO.

The government does not require that a downpayment be made to enter a repayment agreement. I have heard many people state that the collection agencies try to force this.
Respond to this report!
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#4 Author of original report

They also refused to accept my payment arrangements

AUTHOR: Collegegrad - (U.S.A.)

I think that NCO Diversified may be related to Diversified DCS.

When I wanted to make repayment arrangements, these people refused to accept them, wanting to go through automatic debits on my checking account. Because I was the victim of identity theft from Commerce Bank 3 times in one year, I refuse to allow anyone to make withdrawals from my account.

The official student loan site edu.gov states that payments must be made within 20 days of the due date for 9 consecutive months, in order to rehabilitate a loan. I sent certified funds via wire, contacted the omnubudsman at the edu.gov site, and continued to make my payments. I also filed a report with the FTC on them. At this point, the government is recognizing my payments. For NCO stating that the payments have to go to them, this is a bunch of malarky because if you look at the official government web site for the address, and the NCO address for payments, it is the same PO Box, and you still make payable to US Dept of Ed if you are paying NCO.

The government does not require that a downpayment be made to enter a repayment agreement. I have heard many people state that the collection agencies try to force this.
Respond to this report!
What's this?

#5 Author of original report

They also refused to accept my payment arrangements

AUTHOR: Collegegrad - (U.S.A.)

I think that NCO Diversified may be related to Diversified DCS.

When I wanted to make repayment arrangements, these people refused to accept them, wanting to go through automatic debits on my checking account. Because I was the victim of identity theft from Commerce Bank 3 times in one year, I refuse to allow anyone to make withdrawals from my account.

The official student loan site edu.gov states that payments must be made within 20 days of the due date for 9 consecutive months, in order to rehabilitate a loan. I sent certified funds via wire, contacted the omnubudsman at the edu.gov site, and continued to make my payments. I also filed a report with the FTC on them. At this point, the government is recognizing my payments. For NCO stating that the payments have to go to them, this is a bunch of malarky because if you look at the official government web site for the address, and the NCO address for payments, it is the same PO Box, and you still make payable to US Dept of Ed if you are paying NCO.

The government does not require that a downpayment be made to enter a repayment agreement. I have heard many people state that the collection agencies try to force this.
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