Sadly, my DD has a past due student loan that has been sent to collections.

She and I participated in a conference call to discuss. She has to submit her current financial status and her budget for an adjusted payment plan.

The lady we spoke with suggested she open a BB account to have the payment drafted. Strangely, she also told my DD not to involve me (I said nothing when I heard her).

Anyway, my DD's limited income will be a waste of time for her to load small deposits on the card weekly so I will load via VR for her after she opens the BB account. So I will MS as a tool for the miles back. I will insist she pay me back by putting in a savings account.

Is there any reason for an arching brow because this lady specifically suggested doing payment method via BB this way? Risk? She is a debt collector, at the end of the day.

Oh, and one more thing. I would appreciate no snarky comments about my DD, please. FTR, she works almost every weekend in addition to make a bit of extra cash. It is probably this extra money that she will put toward her payment plan. And, no comments about debt, also. I don't throw stones, please don't hurl them at me, either.

there might be some risk in seeing a bb account of someone with very little money having a 500 deposit. i would stay clear of this there are other ways to MS. unless you are giving the money as a gift i would not comingle funds with one whom has a past due debt, they may accuse her of hiding money by giving it to you and this might jeoperdise the repayment plan.

Was there a particular reason the debt collector suggested BB instead of a bank account? One has to first fund the BB account, a bank account seems like the simpler option.

Thanks for the response.

Well, the very first deposit will be a VR reload of $200-500 in a BB account in her name, not mine. It will not be set up until after she submits the financial statement and is approved for the negotiated payment. She lives in a non-CVS city so I will load locally. She will pay me back her payment via bank transfer as we both bank same credit union. She can pay me $50 weekly on weekend she works or cumulatively once a month. We can work out any extra details.

I will state the concern again. The lady specifically suggested this method. Is there a risk her company may debit more than agreed? I don't yet have a BB account (covered in other posts). As I mentioned she suggested that I not become involved (from their point of view). It was a bit of surprise because of the tactics one reads about online with collections, I thought they expect one to sell everything one owns to pay a debt.

If I have to, rather than load the card too much, we can let the account be edited the $3.00 (perish the thought!) per month for this method as requested.

I wouldn't even give them the BB number.
Just buy a money order or cashier's check to pay the collector when you do have the settlement letter in hand.

From what I gathered, the negotiated payment requires a debit-type withdrawal.

I definitely would not give an regular ACH debit from either of our bank accounts.

^ agree

Stay away from making things complicated.

If U are interested in MS, do it totally independent of your DD.

If U do not have any 5x credit card or minimum spend requirement, MS is not even worth doing.

A student loan expert / disinterested third party banker weighing in on this would probably be most helpful, and I believe there are several here.
Another conceivable issue is a lender's paranoia that credit card laws and student loan laws are very different -- mixing can potentially look like a bankruptcy scam.
http://www.nolo.com/legal-encycloped...dent-loan.html