Student loan debt is a hot topic that will likely only get hotter as the amount of student loan–currently over 1 trillion dollars–continues to rise.
The National Consumer Law Center recently published a report that criticizes the Department of Education and it’s contracted debt collection companies, saying that “the Department has created financial incentives for its contractors that encourage high collections at the expense of borrower rights.”
Debt collectors are strictly regulated under the Fair Debt Collection Practices Act, which protects consumers against unfair, deceptive, and abusive debt collection.
Consumers frequently complain about debt collectors trying to collect on old debts. In fact, debt buyer Asset Acceptance paid $2.5 million dollars to settle a FTC lawsuit, which alleged that Asset Acceptance failed to tell consumers that certain debts were too old to be legally enforceable.
The FTC released a guide to help consumers understand old debts, here are some key things to know.
Debt collectors are strictly regulated in how they collect debts from consumers. One common consumer complaint is that debt collectors are calling a consumer at their workplace, harassing a consumer and/or co-workers, or revealing the debt to co-workers.
If debt collectors have contacted someone else about your debt, here is what you need to know about your rights under the Fair Debt Collection Practices Act (FDCPA).
Debt collectors are strictly regulated in how they collect debts from consumers.
One common consumer complaint is that a debt collector is contacting a consumer’s place of work, family, or friends, in an attempt to collect a debt. In fact, there is an entire section of the Fair Debt Collection Practices Act (FDCPA) that regulates debt collection calls to third parties.
On top of that, the Telephone Consumer Protection Act (TCPA) prohibits debt collectors from making unauthorized robocalls to calling you or your family and friends.
If a debt collector reveals your debt to a family member or friend, or if they call your family and friends repeatedly, you should contact a consumer rights attorney immediately, as you may have a claim under the FDCPA.
[Read more…] about Debt Collectors Calling Family and Friends?
For most people, the decision to file bankruptcy is a difficult one. While bankruptcy makes financial sense for many individuals, the social stigma can feel overwhelming. At the same time, many individuals feel the need to file bankruptcy to stop repeated calls from debt collectors.
Filing bankruptcy should stop debt collection. Unfortunately, it’s not always that simple. Here is what you need to know.
When most people think of consumer debt, they think of credit card debt. Recently, however, student loan debt surpassed the total amount of consumer credit debt—totaling more than $ 1 trillion dollars.
Depending on the type of loans, consumers have a variety of repayment options and rights during the collection process.
[Read more…] about Student Loans Repayment Options, Collections, and Consumer Rights