Know Your Rights

Student Loans and Debt Collection

Collectors for Student Loan
The definition of debt collector under the  Fair Debt Collection Practices Act does not include original creditors or servicers of an account for a creditor.  There are certain exceptions to the rule, but for the most part, the statute only applies to third party debt collectors.  Therefore, your creditors  are not held responsible for following the FDCPA's guidelines. 

There is an exception to this rule.  If the student loan was in default, then the account taken over by a new collection agency, the FDCPA rules will be applicable.   The FDCPA includes in its definition of debt collector those creditors that take over an account from another  after the account is already in default.  If one is behind on a loan payment or credit card payment  with a bank, and that bank sells off its accounts , the new bank that has taken over the defaulted accounts may just have become a debt collector with respect to those accounts. 

What does it mean if the collector for the student loan must follow the FDPA rules?   You have rights as a consumer when a debt collector is pursuing you.   Debt collectors cannot:

  • harass or abuse you
  •  make your phone constantly ring intending to annoy you
  • make misrepresentations to you about what it is they may do if you don't pay, or how much you owe, or anything that may be misleading 
  • tell other people about your debts
  • call your place of employment if your employer does not allow such calls

SmithMarco, P.C., has over 30 years of combined experience practicing law protecting the rights of consumers around the country. Contact us for a free case review to determine if your personal debt collection consumer rights were violated.

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