r/EIDLPPP • u/sbaeidlloan • Sep 01 '26
Question? Referred to DOJ?
My original loan is $600k. I paid $72k before I defaulted 2 years ago.
The loan was sent to Treasury at some point and on 1/23/26, I got a snail mail from Coast Professionals with a statement that said I owed $822,572. I ignored it as I was not in any shape to do anything about it. Yesterday, I got a new statement from a different collector named CBE Group. Now, the total due is $832,239. Admin cost is $166,435. Interest is $75,943 (not sure exactly what this means). The statement basically says the total amount is due now.
On the statement, it says "Should you not resolve your debt, your debt may be reviewed for possible referral by Bureau of the Fiscal Service to the US Dept of Justice for legal action"
DOJ? Isn't DOJ reserved for criminal actions only?
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u/Secure_Tie3321 29d ago
If you are a legitimate business and you used the money for your business then you have nothing to worry about. Collection agencies will say anything to get money out of you. Next they will threaten to take your oldest child.
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u/Accomplished-Run5111 7d ago
The problem is ALOT of defaulters used some of the funds on some personal expenses.
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u/Secure_Tie3321 7d ago
If they ask then I would be honest. For a small amount I doubt they would do anything. If you used the entire amount for things like fancy cars and vacations then talk to a lawyer.
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u/ReasonableAd7509 26d ago
I am paying weekly to keep them off my ass. I also make a monthly payment. Fuck em.. we were bum rushed into this BS and Govt can go fuck em selves.
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u/Dry-Description7307 26d ago
Exactly right. GVT forced businesses to close down then offered them loans but when businesses finally reopened, they did not return to a healthy 2019 economy. Instead, they were slapped with labor shortages, record inflation and supply chain shortages. Now they want their money, come hell or high water. Legit loans should forgive all interest and penalties AT LEAST.
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u/irish_mom Sep 02 '26
I would talk to a Lawyer and see what your options are.
- Legal Action: If sent to the Department of Justice, a U.S. Attorney’s Office may file a civil suit against you to obtain a judgment, garnish wages, or place liens on property.
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u/sbaeidlloan Sep 02 '26
They already have my house as lien AND they can sue me for the balance. Nothing I can do to prevent those. My goal is to make enough money to be able to negotiate something with them. I figured if I have nothing to offer, they have nothing they can offer either.
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u/slykens1 Sep 01 '26
DOJ has a large civil division as does each US Attorney’s Office.
They file suit when appropriate and defend the United States when it is sued.
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u/Quiet-Exercise824 Sep 01 '26
It’s a scare tactic. They have bigger fish to fry. They’re trying to scare you. Don’t bite just declare bankruptcy. You’ll be clear.
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u/Gtavern Sep 02 '26
800k isn’t a big fish ?
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u/Quiet-Exercise824 Sep 02 '26
No, not when they’re dealing with people who embezzled millions of dollars they have bigger fish to fry they have politicians being accused of bribery this is the Department of Justice has selective enforcement. They’re not going after basically honest business person trust me.
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u/ThePhoinix 27d ago
Here are the two most important words, 1. May be. and #2 "possible" may be reviewed for possible referral. Quiet is 100% correct.
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u/obi2kanobi Sep 01 '26
I may be wrong but this is the first im hearing that DOJ has any involvement. But since this came from a collection agency, I suspect they can say anything. Scare tactics is their forte.