This is a powerful incentive for them to collect every penny - even if you qualify for lower monthly minimum payments. S. Moreover, some debt collectors will call you with threats of wage garnishment. More likely than not, you have student loans that are due for repayment - if not know, then within the next year. The FDCPA says that a debt collector cannot threaten an action that he isn't able to take or planning to take.
Although there isn't a lot of caselaw regarding this these types of student loan threats, the courts will likely rule that making such a threat is a violation of the Fair Debt Collection Practices Act. If you've been on the receiving end of threatening phone calls by debt collectors attempting to collect a student loan, you should talk to a fair debt attorney. While a student loan is something you need to pay off, you should be treated with dignity and respect, and be able to avail yourself of new laws and regulations that enable you to set up a payment plan that doesn't cause undue hardship After all, if you graduated sometime in the past four years, you faced a double whammy - student loan payments and an unemployment rate that would make the most qualified and educated applicant cringe.
You may be surprised to answer the phone and hear a representative from a private debt collection agency on the other end of the line. If they collect payments that equal a certain percentage of the total amount you owe, they receive a commission. Here's what you need to know in order to effectively deal with student loan debt collection agencies. Unfortunately, debt collectors won't always tell you that you have that option, so you have to know your rights and assert them. articleIf you're a college student or college graduate, you know how expensive it is to go to college.
