Learning About Student Loan Collection Agencies

by John Watts on November 10, 2011

I hope this Thursday finds you doing well.

While this part of the country was consumed with a certain football game between two undefeated teams last weekend, there was a funny (and true) story from the world of education (and athletics) a little north of Alabama:

Tennessee had injured kickers so they sent the campus police to bring a freshman walk on kicker to the stadium. He was sitting on a couch in a fraternity house. He ended up doing very well.

Here’s what the coach said:

“I’m going to write a book one day of the things that have happened to me in the last two years — having to find a kicker out of a frat house,” UT’s coach said.

That’s a new one for me.

While not nearly as funny, I recently found out there is more debt in student loans than in credit cards in this country.

Amazing.

Given the enormous debt level, and given that there is a large percentage of student loans in default, then the subject of student loan collection agencies is important to many families.

We have been suing abusive student loan collection agencies for a number of years and have recently started writing more about this area of the law.

Student loan collection agencies have enormous powers — more so than collection agencies that collect credit card debt. But there are limits. In particular, the Fair Debt Collection Practices Act (FDCPA) limits all student loan collection agencies.

However, the extra power tends to make the student loan collectors arrogant.

Combined with a commission structure that encourages the agencies to demand more money than is legally required, we have a recipe for widespread abuse.

The best protection for you and your family, if you are dealing with student loans, is to learn more about your rights, and then use that knowledge.

To the right we have a number of links to some articles and blog posts that might be of interest to you if you are wondering about the powers (and limits) of collection agencies who collect on private and federal student loans.

We wish you a wonderful Thursday and hope this weekend holds good times for you.

And if a coach calls you to get to the stadium fast, good luck!

:)

John Watts

 

Several collection agencies that collect student loans pay over $4,000,000 in fines but we are assured these companies would never abuse student loan consumers…

Typical violations of the law by student loan collectors

There are about twenty or so collection agencies who collect on federal student loans — here is a list.

The differences (and similarities) in collection powers on federal and private student loans

Leave a Comment

Previous post:

Next post: