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Student Loans and Debt Collection

On Behalf of | Jan 30, 2012 | Consumer Protection

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
  • 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
  • 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.