Sunrise Credit Solutions threatening lawsuit

[troubleintx]

I recently finished medical school in 2008. Instead of immediately going to work (residency), I took time off to help with family issues. Over the last year, I paid off 2 smaller private loans and worked things out with Sallie Mae via forbearance of my existing Stafford loans until I start working next Summer 2011.

As far as I knew, I only had 1 other private student loan that is currently being serviced by Sallie Mae. About 4-5 months ago, I started receiving letters from Sunrise Credit Services, Inc, representing Arrowood Indemnity/Tuitiongard, saying that they were trying to collect about $23,000 from a student loan from a university I attended in 2001-2002. I don't dispute attendance at that university, but I was surprised because I was unaware of this loan. I don't remember ever receiving any communications about this loan or attempts to collect on this loan. I don't even know who was the original provider of the loan. I thought all my loans were either paid off or in good standing with Sallie Mae. I'm guessing I never heard about this loan because my status was still "in school deferred" so no one was trying to collect on any loans.

Then, 2 weeks ago, Sunrise Credit Services sent me a letter stating that "Arrowood Indemnity/Tuitiongard intends to file a lawsuit in order to recover the outstanding monies" unless I pay the entire amount immediately. I used the last of my savings to pay off the 2 private loans, so I don't have any more savings to pay this off. I'm not currently working because I have to study for my medical board exams which are required for work. So, I won't be able to make any payments to these loans until, at least, later this fall or next spring. Any suggestions on how to handle Sunrise Credit Services/Arrowood Indemnity/Tuitiongard? Should I communicate this information with them, or not?

[chane]

I would find out where the loan is from and let them know of your situation. Tell them to call off the collection agencies. If you can't get them to do that, you should probably seek legal advice.

[troubleintx]

Thanks for the tip. I can't find the loan listed on any of the federal student loan locator sites. Should I send a debt validation letter (DVL), or something similar, to Sunrise?

[chane]

It's hard to say. It might piss them off even more and make their threats of suing you become reality. I don't want to give you bad advice.

[debtexecutioner]

Dear Trouble,

With so many people in debt these days, it's become like the wild-west with debt collection agencies (no pun intended!), some are no legit.

If you're getting a collection letter on a student loan you don't have or didn't think you have, send them a dispute letter and demand validation. It has to be done in writing in order to preserve your rights under the Fair Credit Billing Act.

Don't let the threats of "we're going to sue" freak you out. I see that garbage all the time and debt collectors do nothing. They're just trying to get $$. But are they legitimate? Are they trying to scam you? Did your bank/student loan company sell off the loan? These are things you need to find out. Know this, you cannot preserve your rights with a phone call, so if you call the debt collector, get information don't give it.

If they are a legitimate debt collector, they will be licensed and registered with the Department of Banking and/or Finance in the state where they are doing business. Google it - these records are normally online or you can call.
If you'll post their addresss/state of operations, I'll look it up myself and post the link here for other folks. If they're not legit, you can call them on it and file complaints with the debt collection "police".

Sara Goodman
DebtExecutioner:cool:

[troubleintx]

Originally Posted by debtexecutioner

Don't let the threats of "we're going to sue" freak you out. I see that garbage all the time and debt collectors do nothing. They're just trying to get $$. But are they legitimate? Are they trying to scam you? Did your bank/student loan company sell off the loan? These are things you need to find out. Know this, you cannot preserve your rights with a phone call, so if you call the debt collector, get information don't give it.

I guess some bank at some point may have sold off some loans of mine, but I don't remember getting notice of that. Well, I was tempted to send a letter of validation, but I didn't want to get them any more excited than they already are.

Originally Posted by debtexecutioner

If they are a legitimate debt collector, they will be licensed and registered with the Department of Banking and/or Finance in the state where they are doing business. Google it - these records are normally online or you can call.
If you'll post their addresss/state of operations, I'll look it up myself and post the link here for other folks. If they're not legit, you can call them on it and file complaints with the debt collection "police".

Sara Goodman
DebtExecutioner:cool:

I couldn't find anything on the Texas Department of Banking website; however, I did find Arrowood Indemnity Company listed here ...
h t t p s ://apps.tdi.state.tx.us/pcci/pcci_show_profile.jsp?tdiNum=93573

Here is the information you requested:
Sunrise Credit Services, Inc
PO Box 9100
Farmingdale, NY 11735
Creditor: Arrowood Indemnity/Tuitiongard

[debtexecutioner]

Hi Trouble,

Did some checking. Sunrise Credit Services is registered to do biz in NY, but not registered with Dept. of Banking.

(AAA Credit Forum wouldn't let me post links to Sites)

Arrowood Indemnity is a Casualty Insurance Company, specializing in accident and liability, although the link you sent shows "credit" and "fidelity". BUT Arrowood Indemnity would not have been the creditor on a student loan.
Found this info on Tuitiongard @ Bnet:
Fitch Rating for Brazos Student Finance Corp

The TUITIONGard student loans are insured by Landmark American Insurance Company and American and Foreign Insurance Company, both part of the Royal & SunAlliance USA Insurance Group. (Not Arrowood)

So whatever Sunrise is doing with you is questionable.
Plenty of really bad complaints against Sunrise on the web, check out Rip Off Report and the BBB in New York.

If the letter you received says: "You have 30 days to dispute this debt or it will be assumed to be valid", the debt collector has fulfilled part of his obligation under the Fair Debt Collection Practices Act. If you don't dispute the letter, it WILL be presumed to be valid, even if it isn't! The only way to protect your rights is to dispute.

Sara Goodman
Debt Executioner:cool:

[troubleintx]

Thank you for the research and detailed information. It's already past the 30 days stated in the letter (June 10, 2010). What do you suggest I do next? How exactly would I dispute the letter?

[debtexecutioner]

So the 30 day deadline was June 10? From the date of the letter or when it was received? Dispute it anyway so that the letter goes on file.

Haven't seen the letter to see if the debt collector has met all the FDCPA rules, but you can do something like this:

Name and
Address Certified Mail # ________

Reference: Your letter dated _____, your file # _________

Dear Sunrise,

I recently received a collection letter from your office, a copy is attached for reference.

After reviewing your letter, I dispute this debt entirely. To my knowledge I never had a loan, contract, or agreement with your company or Arrowood.
Someone may have used my identity or you have me confused with someone else altogether.

According to your letter I have 30 days to dispute this alleged debt, therefore please consider this my formal and legal dispute and place a copy of this letter in your files for reference. Thank you.

Sincerely,

___________________

Attachment: Letter

____________________________________________


Once disputed they have to provide validation and proof that this alleged debt is yours. If they can't validate it, then all collection activity stops
and the file is returned to the original creditor.

Sara Goodman
DebtExecutioner:cool:

[goljan]

I too receive very similar letter from Sunrise Credit threating to sue both me and my sister who happened to be my cosigner during my medical school career. the letter is threating to sue, garnish or placing a lean on my sister's house. The letter is indicating that they are debt collector for tuitiongard. I too never had any type of contract with Tuitiongard nor Sunrise Credit Services. So I am very scared to even talk to them as I have in the past because they are very nasty on the phone. I need advice in this regard as well.

Thank you