Student Loans — Example of Abusive Collection Related to Bankruptcy Discharge


Student loan collection agencies must follow the law — especially the Fair Debt Collection Practices Act (FDCPA) — when dealing with student loan borrowers. We have repeatedly sued student loan debt collectors who lie to borrowers.

Often the lie relates to garnishing wages when the collection agency has not obtained the right to garnish wages.

Check out this link to find out about an interesting lie by a collection agency that told a borrower it could not file for bankruptcy and receive a discharge. It IS possible to receive a discharge, although it is difficult.

Difficult is not the same as impossible.

Many borrowers who qualify for discharge are not even trying which is sad as they remain trapped in a hole they likely can never escape.

The take home message, however, is that if you are dealing with a student loan collection agency, don’t tolerate the collectors lying to you — if they do then look into suing them under the FDCPA. You can receive damages and the student loan collector will likely have to pay your lawyer’s fees — you should not be out of pocket any money to your lawyer.

Call us if you would like more information and if you live in Alabama — you can reach us at 205-879-2447 or you can send us a message through our online contact form.

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