The Confessions of a
Student Loan Collector
I would contact a borrower’s payroll department, or the garnishment department to verify that the borrower is employed and on payroll with a company. On a phone call like this one gathering the basic facts, such as the work position, the department, income info, and the date-of-hire came with ease. Now, before my phone ambush I needed to launch some scud missiles. I needed to make sure that my messages got to my recipient. This tactic is what I referred to as the “Blowing up your media” technique. Collectors would usually send a paper verification of employment via fax to the work, call the borrower’s near-bys (neighbors), and a borrower’s reference (usually the borrower’s family member). Once this is completed I would…. (Continued)
If you would like to get the exclusive interview with the rogue federal student loan collector… please visit www.FreeStudentLoanStuff.com
-Mr. Kay
The Rogue student loan collector
The FDCPA and your rights as a Borrower
The Department of Education is known to hire collection agencies in order to collect on defaulted Federal student loans. Since Federal student loans are different from other types of debt it is often misunderstood, and a collector may misrepresent a solution by twist their language. Every borrower should be aware of their rights, and the factors that play a role in their own outcome.
Issues with Student loan collection agencies may include:
- Misinterpretation and a lack of clarity when discussing the nature of these remedies.
- The complex details of these student loan programs cause confusion about the collection agencies role when collecting on a debt.
- When establishing a payment program the agency has the responsibility for determining the size of the payment amount. In addition, the agencies help recommend borrowers to wage garnishments and tax refund intercepts.
- Government oversight maybe common, considering the high volume of student loan inventory these collection agencies must service.
- Some of Department of Ed’s customer service phone numbers are contracted agencies them selves.
YOUR FAIR DEBT COLLECTION RIGHTS
A collection agency should never harass a borrower. A Federal fair debt collection practices law and similar state laws exist to protect the consumer’s privacy and rights. In some situations your state law maybe more powerful than the federal. A borrower should be aware of their rights when dealing with collection agencies. A rarely discussed right in the federal debt law is your right to request that a collection agency cease contact at certain locations (such as work places). Once the “Cease communication” letter is sent the agency will honor their request.
Additional rights in the federal fair debt law include:
1. Protection of Privacy
- Agencies are prohibited from disclosing the debt when communicating with third parties. Third parties include non-immediate family members, coworkers, neighbors, etc.
- In most cases a collector should only call between 8:00 a.m. and before 9:00 p.m. No communication is allowed if the collector knows you are represented by an attorney. The agency must communicate with the attorney.
- Once a request is made no communication is allowed at your place of employment.
2. Abuse & Harassment Is Prohibited
It is flat out illegal for debt collectors to abuse or harass a borrower. Some examples include collectors that:
- Use obscene or insulting language,
- Refuse to disclose their identity,
- Threaten violence,
- Call over and over again on the same day with out your permission.
- Making false threats to investigate you.
3. Misleading or False Representations is Prohibited
A collector may only mention consequences that can legally be taken. It is always suggested that a borrower listens carefully for the collector’s choice of words.
For example, collectors may not make false representations by threatening to take any action that cannot legally be taken (e.g. Auction your house, Levi your bank account, taking your children away, arrest you, take your property).
