Author Topic: Student loans  (Read 464 times)

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BigSal

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Student loans
« on: December 15, 2013 07:29:58 PM »
Are there any special rules or FDCPA exemptions for debt collectors who are collecting federal student loans?  I don't think they are exempt from anything.  But, I am not sure.
If you need legal advice, go see a lawyer.

kevinmanheim

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Re: Student loans
« Reply #1 on: December 15, 2013 08:40:19 PM »
A student loan debt is, by definition, made for personal purposes. The collector should be FDCPA liable, assuming they meet the other requirements for that status.


Brunothe JDBKiller

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Re: Student loans
« Reply #2 on: December 15, 2013 08:50:17 PM »
Anybody who attempts to collect a debt for another party is subject to the FDCPA. the statute makes no exceptions based upon the nature of the debt.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

kevinmanheim

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Re: Student loans
« Reply #3 on: December 15, 2013 10:29:02 PM »
Anybody who attempts to collect a debt for another party is subject to the FDCPA. the statute makes no exceptions based upon the nature of the debt.
Only personal, household and family debts fall under the FDCPA.

BrokeBob

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Re: Student loans
« Reply #4 on: December 15, 2013 11:19:56 PM »
Correct.  Business debts are not covered, but then student loans are not business debts.

The Litigator

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Re: Student loans
« Reply #5 on: December 16, 2013 03:28:26 PM »
Are there any special rules or FDCPA exemptions for debt collectors who are collecting federal student loans?  I don't think they are exempt from anything.  But, I am not sure.

FDCPA applies to CA's collecting student loans like any other consumer debt.

Quote
The purpose of the Fair Debt Collection Practices Act (FDCPA) is to prohibit abusive, deceptive
and unfair debt collection practices by debt collectors.
 
Any person who violates a provision of the FDCPA is found guilty of a misdemeanor and upon
conviction is punishable by a fine of not less than $100 nor more than $1000 for each conviction.
 
Borrowers often allege that ED or the PCAs have engaged in acts or practices that violate the
FDCPA. The FDCPA applies only to the collection activities of third-party debt collectors. The
statute itself defines the term "debt collector" to exclude officers or employees of the United
States, and therefore the FDCPA by its terms does not apply to the collection actions of ED
employees. The FDCPA does, however, apply to the PCAs ED retains to perform collection
services on student loans.
 
Because the FDCPA does not apply to ED, ED takes the position that it cannot be held liable for
any FDCPA violations of its PCAs. In addition, there is a clause in each of ED's task order
awards with a PCA that holds ED harmless for the acts of the collection agency.

Here is the DoE collection procedure manual from 2009. Read up on it. http://www.studentloanborrowerassistance.org/wp-content/uploads/2007/03/2009-pca-procedures.pdf
I am not an attorney. Whatever I say is from personal experience.

I would like to thank all the predatory big banks that made it possible for me to be denied a mortgage for my family.

kparker

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Re: Student loans
« Reply #6 on: December 16, 2013 10:56:39 PM »
Went through that fire with a debt collection company that begins with the letter "G".  Sent a DV to get them to quit harrassing me on the job (constant "employment verification" faxes to my manager and constant telephone calls).  Finally rehabbed the loan through MOHELA.

They have to follow the FDCPA, but I found out that once you are in default on federally-backed loans, wage garnishment can begin with just a notification letter to your employer.

The Litigator

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Re: Student loans
« Reply #7 on: December 16, 2013 10:58:56 PM »
They have to follow the FDCPA, but I found out that once you are in default on federally-backed loans, wage garnishment can begin with just a notification letter to your employer.

This is true, however you are given notice of the garnishment and a chance to challenge it via a hearing.

Didn't go that route, so I have no idea how it works.
I am not an attorney. Whatever I say is from personal experience.

I would like to thank all the predatory big banks that made it possible for me to be denied a mortgage for my family.

Scharnhorst

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Re: Student loans
« Reply #8 on: December 27, 2013 02:10:10 AM »
Anybody who attempts to collect a debt for another party is subject to the FDCPA. the statute makes no exceptions based upon the nature of the debt.


What about a business that collects its own debts?


http://www.loeb.com/cfpb-will-apply-fdcpa-rules-to-businesses/

I bring forth lawsuits primarily to protect my rights, enforce the law, and recover damages as provided by the law. I have never brought forth an action with the intent to harass or maliciously injure another party.

When the law is not clear or not specifically applicable to the situation, I am prepared to offer a good faith argument for the extension of existing law to the situation.

LUEser

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Re: Student loans
« Reply #9 on: December 27, 2013 04:40:06 AM »
CFPB will, by that article, only be applying that to first party creditors as its own administrative enforcement mechanism; it won't confer standing to a private citizen to sue or give a new private right of action to consumers individually. However, it could be an interesting case of United States ex rel Scharnhorst v. Creditor if they chose to pursue it.
--
*I'm not a lawyer, just a consumer rights advocate.

Brunothe JDBKiller

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Re: Student loans
« Reply #10 on: December 27, 2013 01:48:00 PM »

What about a business that collects its own debts?


http://www.loeb.com/cfpb-will-apply-fdcpa-rules-to-businesses/



In house collections are not subject to the FDCPA because they are not third party debt collectors. They are subject to the "mirror" laws like the Rosenthal Act, the TCPA  (not the phone one, Tennessee) and Texas has one, other states as well, these cover in house collections.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.