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Paying WAY more than the loan...

Date: Wed, 07/20/2005 - 18:40

Submitted by anonymous
on Wed, 07/20/2005 - 18:40

Posts: 202330 Credits: [Donate]

Total Replies: 2

Paying WAY more than the loan...


I took out a student loan around 1986 for around $1,600. Since then I've had almost $5,000 garnished from my wages and today received a phonecall that I still owe almost $6,000 that I must pay in 2 days or else they're going to begin garnishing my wages again. How can it be so much? Is this legal?


Hi kmf

Welcome to the debt consolidation care forums

You took a student loan in the year 1986. The value of the loan is $1600. After garnishing your wages to the extent of $5000 you still have $6000 unpaid balance. This is the interest which your lender has charged. Ask your lender to validate your total amount of debt. As per law they are bound to validate your debt amount. If they do not give a response lodge a complain against them in FTC. Please do not stress yourself out.

Hope you will find this information useful.

Regards
Peter


lrhall41

Submitted by peter on Thu, 07/21/2005 - 02:58

( Posts: 285 | Credits: )


Kmf, make sure that your debt is validated by the collection agency. It is your legal right as per the fdcpa law to know the actual details of your debt.

Your debt total was $1600 and $5000 was garnished from your wages. So it means that you have paid all the interest charges. There is no further point to pay another $6000 towards this debt.

If the collection agency does not provide you the complete details of your accounts, it will be a violation of the Consumer Protection afforded by the FDCPA under section 809(b). You can take legal action against them if they don't validate the said debt and continue to report your account to the credit bureaus.


lrhall41

Submitted by ben on Thu, 07/21/2005 - 14:53

( Posts: 2034 | Credits: )