debt collector

Rehabilitation of Student Loans

For many consumers, student loan debt is a giant, and seemingly never-ending burden. Most consumers have federal student loans, which provide a variety of statutory rights that do not apply to private student loans.

One of the most important rights is called rehabilitation: the right to make nine reasonable and affordable payments to restore federal loans into good standing.

As of July 1, 2014, there are new rules for student loan rehabilitation, and the changes are consumer-friendly. Here are some of the most important changes.

Student Loans and Co-Signers

Student loan debt is different from other types of consumer debt because of the high balances involved.

And many student loans require a co-signer in order for the loan to be approved, which means if something happens to the primary borrower, the co-signer may suddenly be pursued for the student loan by a debt collector.

Getting a co-signer released from a student loan can be tricky, but in many situations there is a way out.

Autodialed Debt Collector Calls to Your Cellphone

Debt collectors are regulated in how they can collect debts from consumers. Collection calls to a cellphone are regulated under the Telephone Consumer Protection Act (TCPA).

If you are receiving calls from a debt collector on your cellphone, here is what you need to know.

Student Loan Options, Default, and Dealing with Debt Collectors

Student loan debt is skyrocketing—the latest figures put student loan debt at $1.2 trillion dollars. As the cost of education continues to rise, more and more consumers are dealing with higher amounts of student loan debt.

The good news is that there are options for dealing with student loans. Even if a student loan is in default (and with a debt collector), borrowers with federal student loans can rehabilitate the loan.

Jury Awards $18 Million for Credit Report Errors

One of the major issues facing consumers today is errors on credit reports.

Sometimes the errors are because items reported by debt collectors.

In other cases, the errors persist after a consumer sent a dispute letter to the credit reporting agencies.

In a recent case, a federal jury awarded a woman over $18 million dollars because of errors on her credit report. The woman testified that she contacted Equifax eight times over a two-year span to correct alleged inaccurate information on her credit report.

She alleged that her report had the wrong social security number, wrong birthday, incorrect accounts in collection, and erroneous accounts. However, it should be noted that Equifax will likely appeal the decision, so it may be years before there is a final decision.

If you believe there is inaccurate information on your credit report, you can use this dispute letter to request an investigation. If you believe you need additional assistance, feel free to contact me.

(photo: http://www.flickr.com/photos/nickwebb/3016498475/)

Debts, the Deceased, and Debt Collectors Calling Family Members

The Fair Debt Collection Practices Act (FDPCA) regulates how debt collectors can act when they are collecting debts from consumers.

A rapidly developing area of debt collection is collecting debts of a deceased individual.

This frequently leads to debt collectors contacting a consumer’s family and friends. If you are being contacted, it’s important to understand your rights against debt collectors.

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