Apr 21, 2015
Firstly, let it be known that Account Control Technology (ACT), Inc., is a for-profit company that can't [legally] do "more" than a debtor can on their own to reconcile a federal debt/federal student loan.
Secondly, ACT is trolling potential debtors who have disposable money to spend, but are unaware of how to spend it effectively. Hence, they want to help a debtor spend their money, but it will cost the debtor a hefty fee for the help.
Thirdly, ACT uses multiple phone numbers to cold-call potential debtors. They've used 325-224-3992 and 325-224-3998; I've posted a comment under both numbers on this site.
What to know. ACT does not display it's name on caller-ID...it provides "Account Control", which is deceptive. ACT does not leave a message or explain the purpose of their call, which is deceptive. They do this on purpose.
If a debtor answers the phone and "positively" identifies themselves as someone ACT believes owes a legitimate debt (based on some arbitrary listing ACT produces), then ACT can legally harass a debtor by calling their home land line, cell-phone, work, etc.
http://www.nolo.com/legal-encyclopedia/can-creditor-me-work-collect-debt.html
ACT has nothing to lose by harassing a debtor, they have a financial incentive (profit) to do so. Thus, for ACT it's not harassment, it's merely business. The point, is to never answer the phone or arbitrarily give out personally identifiable information to a stranger, even if the stranger has a company name and insists they have an offer a debtor just can't refuse!"
Yes, take care of debt...no doubt...but, don't go through a mediator or middle-man for federal debt, because a federal debt can be paid directly to the government without the need of a third-party that charges outrageous fees. The government isn't going to "refuse" to accept a payment on a federal debt--that's legally ridiculous.
Now, if someone has a "private" student loan, from a "private lender", and they're in default, then a debtor may have no choice but to go through a collection agency outside the original loan company. As well, a debtor may have to deal with a completely different company if the debt is "sold" to another business. Know the limits of private debt.
http://www.nolo.com/legal-encyclopedia/time-b ... tors-29805.html
A major difference between a federal debt and a private debt is that a federal student loan can't be discharged/forgiven except in rare cases (debtor dies, debtor pays off the loan, or debtor is considered permanently and totally disabled). A federal loan can't be discharged by bankruptcy...a private loan can.
Beyond this, here's a copy of a ripoff report article surveying ACT's competence to handle an "account" they "control".
http://www.ripoffreport.com/r/account-control-technology-act/bakersfield-california-/account-control-technology-act-these-people-are-beyond-mornic-bakersfield-california-569276#comment_1
Account Control Technology, Inc.'s Purpose Statement: "With our consultative approach, ACT fosters respectful communications, carefully preserving the relationship between your institution and your students and alumni. Whether it’s efficiently reaching students while still in school or working through the intricacies of the student loan life cycle, ACT adheres to strict standards and is always mindful of protecting your reputation.
ACT has operated as a licensed third-party collection agency in educational loans and receivables since 1990. We are trusted by colleges and universities across the nation to serve their financial needs and retain positive relationships with students. We service all types of campus-based debt and offer additional solutions to help your school improve its finances and strengthen its reputation:"
http://accountcontrol.com/Industries/Education
ACT is out to profit from schools, government, and the debtor--that is their gig. ACT does not consider what is in the best interest of the debtor, they ACT according to their own financial interest, which is at odds with the interest of a debtor.
ACT drag-nets credit-reports, the Department of Education, etc., to get potential targets for their business.
My advice, if the debt is too old to collect on, don't reactivate the debt by talking to a debt-collector. If the debt is private and you can't pay the debt, and have other outstanding debt, consider bankruptcy and pay what you can (chapter-13) or dismiss all the debt entirely (chapter-7), as opposed to "giving" money to ACT that could have paid off other creditors.
An attorney fee will likely be required, but it may be much more productive to pay a fee to erase all debt, than trying to pay a third-party collector (ACT) a fee to bring only one student loan debt into good standing, which leaves the debtor still owing the debt along with all of the other debt someone may owe creditors.
If someone doesn't know whether or not they owe a student loan, then pull a credit report and identify the original loan/lender. If the information on the credit report is incorrect, get it corrected. If a credit report shows the account in good standing, then companies like ACT (and there are over a hundred working for the Dept. of Education) will have no means to identify a potential debtor/mark/target for business opportunity.