How Do You Fight Student Loans and Collection Calls?

Currently, the amount of student loans in the country is approximately $1.57 million and about 11 percent of these loans are in default or are severely delinquent. This debt threatens the financial future of millions of Americans and can make it extremely difficult to pay for a person’s daily expenses.

It is not uncommon for debt collectors to purchase student loan debt from original creditors and aggressively pursue it from the borrower. They may even take illegal action when trying to recover on debt, such as using harassing or threatening language.

It is possible to fight student loans and collection calls, but it is not always easy. If a collection company has violated your rights, it is important that you speak with a debt defense lawyer as soon as possible.

Debt Collection Harassment is Against the Law

The Federal Debt Collection Practices Act (FDCPA) prohibits debt collectors from harassing, oppressing, or abusing borrowers, or anyone else they contact in regards to the loan. This law applies to debt collectors trying to recover student loans, too. Some of the most common examples of illegal tactics used by debt collectors include:

• Repetitive phone calls that are intended to abuse, annoy, or harass you or any person answering the phone
• Use of profane or obscene language
• Threats of harm or violence
• Publicly publishing the names of borrowers that cannot pay their debt, with the exception of reporting borrowers to credit reporting companies
• Calling without identifying who they are or why they are calling

Any time a debt collector, even those trying to recover student loan debt, harasses you or otherwise violates the law, you can file a claim against them under the FDCPA. If you win your lawsuit, you could be entitled to up to $1,000 in damages. These lawsuits are complex, and you will have to prove your case. It is essential that you speak with a Fort Lauderdale debt defense lawyer before filing your suit to give yourself the best chance of success with your claim.

Under the Telephone Consumer Protection Act (TCPA), consumers are protected from receiving robocalls from debt collection companies, unless they have expressly consented to this type of contact. Even when a consumer provides consent to receive robocalls, they can withdraw that permission at any time. Still, it is critical for anyone with an outstanding student loan to know that in 2015, Congress outlined an exception for debt collectors of federal debts, which includes government-backed student loans.

What to Do if Contacted by a Debt Collector for a Student Loan

Regardless of your situation, the first time a debt collection company contacts you about a student loan, you should take it very seriously. If you ignore it, you could seriously and negatively affect your financial future. Any time you are contacted by a debt collection company based on a student loan, the steps to take are as follows:

• Apply for an income-driven repayment plan: Anyone with a federal loan can apply for an income-driven repayment plan, available from the U.S. Department of Education. If you only have a certain amount of income, the repayment plan could mean you can pay as little as zero dollars a month.
• Refinance the loan: You may be able to refinance your loan privately. Before making this move, it is important to speak to a Fort Lauderdale debt defense lawyer who can help you determine if it is right for you.
• Be cautious of student loan relief companies: Student loan relief companies do not only charge high upfront fees, which will only make it more difficult to pay off your loan while maintaining your daily expenses. Additionally, these companies are not always legitimate and are only looking to prey on desperate borrowers. The Federal Trade Commission sued five companies in California and Florida in 2017. This was part of what was known as the “Operation Game of Loans,” which required enforcement by the attorney generals in 11 states and the District of Columbia. Florida was one of these, along with Colorado, Kansas, Illinois, North Carolina, Maryland, North Dakota, Pennsylvania, Oregon, Washington, and Texas.
• Speak to a lawyer: It is critical that you speak to a Fort Lauderdale debt defense lawyer if you receive notice that the debt collection company is suing you over student loan debt. If you do not respond to the lawsuit, the company will likely try to obtain a default judgment against you, and they will probably be successful. A default judgment will allow the debt collection company to take legal action against you, such as placing a lien on your property or garnishing your wages. A lawyer may be able to fight back against the lawsuit by proving the debt is not yours and get the lawsuit dismissed.
• Consequences of federally-backed loans: The majority of student loans are federally-backed, and while that can make it easier for some to obtain the money they need for university, it can also bring additional consequences for those who have a federal loan. If you default on a federal student loan, the government may seize your social security payments or tax refund, and they can also garnish your wages.

A debt defense lawyer in Fort Lauderdale can help you fight back against these lawsuits and give you the best chance of a positive outcome.

Call Our Debt Defense Lawyer in Fort Lauderdale for Help with Your Case

If you have been contacted by a debt collection company or you are being sued regarding a student loan debt, you may wonder if there is anything you can do. The short answer is, yes! You need help from our Fort Lauderdale debt defense lawyer.

At Loan Lawyers, our skilled attorneys will help you fight back against these lawsuits and show that the debt is not yours, or that you are not responsible for the full amount the company is seeking. When you need help, call us at (954) 523-4357 or fill out our online form to schedule a free consultation with one of our skilled attorneys and to learn more about how we can help.