With the increasing costs in the university education, many students tend to get loans. But in a situation failing to repay them on time, if you are getting harassed and threatened, it will be an illegal action against you and you can take certain steps against the injustice.
The collection calls for the loans for students can start six months after a student graduation. When the loans can be obtained, the DOE or Department of Education contact contracted debt collectors to get payment. In a situation the accounts that are failed to get establish and adhere to a repayment agreement, the third party collectors are used. They are responsible in the determination of reasonable repayment plans and enforcing them.
When you can’t afford to repay your loan and the income and tax refund garnishments can fail to cover the interest resulting in a shortage of money with you, your debt will increase. This will cause to defaulting the loan.
But even you have fallen behind the students’ loans repayment, the debt collectors do not have the right to abuse, intimidate, harass or deceive you. Every debt collector should follow the federal law in FDCPA which is known as Fair Debt Collections Practices Act.
According to FDCPA, the debt collectors must identify themselves in every communication with you; they must notify the customer that the communication is from a debt collector and the communication is about collecting the consumer loans, should give the address and name of the original creditor, must notify consumer of their right to dispute the debt fully or partially with the debt collector, should verify the debt and also must file a lawsuit in a proper venue.
The FDCPA prohibits the debt collectors from the following activities.
The debt collectors can’t call you outside the hours between 8 a.m. to 9 p.m. They must cease their communication when the consumer notify them and request to end the communication. Numerous and continuous calls in order to abuse and annoy you are prohibited. After the consumers have filed bankruptcy, the debt collectors cannot have communication with consumers. The consumers cannot be contacted at their employing place. If the consumer is represented by an attorney, he should not be contacted by the debt collector. When the consumer sends a written request to verify the debt and before the collector mails the verification which is requested, the communication must be stopped. Misrepresenting the consumer to collect the debt is not allowed by this law. It is also prohibited to publish an address or name of a consumer on a bad debt list. Any amount of money demanded by the collector which will not be according to the initial loan agreement the consumer has agreed is not permitted. You can take action if your debt collector is asking money which is not in the loan contract. Threatening to arrest or legal actions is prohibited. And debt collectors can’t use abusive language in their communication. Other than the spouse or the attorney of the consumer it is restricted to communicate with any other third party. The debt collectors can’t use any type of media like post cards, mails or telegrams in order to collect debts. And it is prohibited to report false information on a credit report of the consumer.
So according to the above facts it is clear that all debt collectors must work according to the FDSPA act and people who are not working according to this can be punished by the law. You are able to contact any law firm and get legal help to stop the harassment by the debt collectors.