Debt collectors excel at taking advantage of student loan borrowers by misrepresenting the law and options available to borrowers.
Common violations we see in Florida are:
1) Misrepresenting that the collector may use federal powers such as Social Security offsets or administrative garnishment of wages;
2) Providing inaccurate information about repayment options;
3) Insisting on an unaffordable payment amounts for rehabilitation;
4) Claiming that borrowers must make payments in order to consolidate;
5) Requiring “good faith” payments before borrowers can “apply” for rehabilitation.
Attorneys well versed in the various student loan programs and available options can assist a borrower in avoiding default, getting out of default and finally arranging for an affordable payment with forgiveness of the remainder of the principal balance. These attorneys often fund a part of their practice of helping students by suing debt collectors for violations. Here in Florida for instance, we believe it is a violation of the Florida Consumer Collections Practices Act, the Florida Unfair and Deceptive Trade Practices Act and also the Fair Debt Collection Practices Act to misrepresent payment options or assert a legal right that does not exist.
To determine if you have been a victim of improper debt collection by a student loan debt collector, please call Christie D. Arkovich.
Also please see our Student Loan Survial Center and how we can help.