Question

I found "filed claim with government" on my credit report: What does that mean?

I got a call a few weeks ago from a collection agency. They claimed I had defaulted on 5 private (AES) student loans, and I needed to pay them in full or they would take involuntary collection procedures against me. I had been under the impression that these loans were in deferrment, but the company claimed they left deferrment and the reason I received no paperwork on it was because they did not have an updated address for me. (This is untrue; and they did have my phone number, obviously). I offered payment arrangements, but the company refused and said they needed to be paid in full. When I asked what their "involuntary collections procedures" involved, they wouldn't tell me. I ordered a copy of my credit report, and under those 5 loans, they are listed as "transferred to recovery, claim filed with government." I have no idea what that last part means, and would like some help. I've tried calling the collections company several times, and I always get an answering machine, and nobody returns my calls. I called the original loan provider, and they let me put 2 other loans I have with them into a repayment plan and said to contact the collections agency to make payment arrangements on the other 5. Again, the collection agency won't work with me. I'm very confused and unsure what they can do. I am worried because of a situation that happened a few years ago. My father is the co-signer on these loans. We had a family falling out and about 2 years ago, he tried to say I forged his signature on all of the loans. A police officer interviewed me, but nothing ever came of the allegations (btw, they are NOT true). When I see the "claim filed with government" part, I worry that it has something to do with that.

5 years ago - 4 answers

Best Answer

Chosen by Asker

I have a friend in a similar situation. I believe when they say "claim filed with government" they are saying that if and when you file your income tax return, if you get any money back, you won't be getting it because the collection company will just take it as payment on your loan. My friend didn't get any of his $1,000.00 tax return this year because he defaulted as well. He's gotten the run-around but finally was able to talk to an understanding collection agent that helped him work out a plan for payment. It took about 3 months to get everything squared away so my suggestion is just be very persistent and harass the hell out of the collection agency and loan provider and ask to speak to supervisor's. Explain your situation and hopefully, with some luck, you'll get someone that will eventually help you out.

5 years ago

Other Answers

Claim filed with government means they are attempting to begin withholding your wages from your paycheck.

by K.p. - 5 years ago

It means that if you get any tax returns, the amount owed will be deducted for your student loans.

by justme - 5 years ago

No it has nothing to do with that. Student loans are secured by the Government. When you failed to make the payments the lenders applied to the Federal government for payment. The government in turn turns the accounts over to collections. You are solely responsible for this mess. Had you been current with repaying the money you borrowed none of this would have happened. Failure to repay and the government freezes your accounts, puts liens on your property and takes your tax returns.

by sassy2 - 5 years ago