You May Be Subject To A Plethora Of Unfair Student Loan Collection Practices If You Default On Your Student Loan

You may be subject to a range of unfair student loan collection practices if you default on your student loan. Collection agents start with phone calls and letters. They then step up to seizing your tax refund or a portion of your wages. Student loan lenders will hire private collection agencies to shake you down. They also will not hesitate to sue you.

Collection agents start with phone calls and letters. They soon after step up to more brazen tactics like seizing your tax refund or a portion of your wages. Student loan lenders will also hire private collection agencies to shake you down. Furthermore, they will not hesitate to sue you.

You do have legal rights and you can fight the debt collectors.  

The Difference Between Federal And Private Lenders Student Loan Collection Tactics 

It’s important to understand federal and state lenders have collection options that ordinary lenders do not. Federal and state lenders can garnish your wages immediately after you go into default. Yet, a private lender must win a lawsuit against you before attempting to garnish your wages. Federal lenders can also seize your Social Security or other federal benefits.

Aggressive collection agencies are infamous for breaking the law. You need to know what your rights are before you engage them.

Student Loan recipients can file a complaint with the Consumer Financial Protection Bureau. You can also file a complaint with the United States Department of Education. You can always file a lawsuit against the lender if the complaints don’t bring you any satisfaction.

How Student Loan Debt Collectors Break the Law

Public and private lenders must abide by the Fair Debt Collection Practices Act (FDCPA) and the Truth-In-Lending-Act (TILA). They must also abide by any state laws that offer additional consumer protections.

These laws forbid lenders from using deceptive, abusive, or harassing tactics to get you to pay. The Federal Trade Commission offers a good Debt Collection FAQ to help you understand exactly what this means.

Here are just some of the ways private student loan debt collectors may violate fair debt collection laws:

• calling you before 8 in the morning or 9 at night
• calling you at work after you’ve told them not to
• contacting you if they know you’ve hired a lawyer to help you handle your debt
• discussing your student loan debt with your family, friends, or others
• swearing at you, calling you names, using repeated phone calls to annoy you, or otherwise abusing or harassing you
• leading you to believe they’re calling from the government
• misrepresenting your rights as a student loan borrower, or
• threatening to have you arrested.

You should always keep detailed records of all communications with student loan debt collection agents. This is a must if you think a debt collector is violating federal or state fair debt collection laws.

You Can Fight Back

You can fight back contrary to what the government and Wall Street lenders tell you. It’s not as hard as you think and there are a number of ways to do it.

Filing Bankruptcy

You must file a Complaint to Determine Dischargeability during your bankruptcy. It is then up to the bankruptcy trustee if they want to discharge the debt. As a result, this can stop the student loan debt collector from collecting on the debt.

Arguing The Student Loan Collection Agency Waited Too Long To Sue You  

Federal student loans have no statute of limitations. This is the opposite of private student loans that are subject to a statute of limitations on the state level. Lawyers we work within Florida and New York have successfully used this claim on several occasions.

The Student Loan Collection Agency Lacks Standing To Enforce The Contract.

There are two things a creditor must have when they sue you. They must attach a copy of the original loan agreement. The Plaintiff must also show proof they have acquired the rights to collect on the debt. They must have proof they acquired the note if they are not the original creditor. This is usually done with an endorsement to the new creditor on the promissory note.

Feel free to call us at 888.737.6344 to learn more.