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debt collectors calling for a defaulted student loan

Date: Tue, 02/20/2007 - 14:43

Submitted by anonymous
on Tue, 02/20/2007 - 14:43

Posts: 202330 Credits: [Donate]

Total Replies: 4

debt collectors calling for a defaulted student loan


I am a single mother and soul provider of twin boys. I am on welfare and take home around $200 a week. Each month I am in the negetive. I have defaulted student loans, at one point i tried to work out a payment plan but couldn't start paying until a month later. The collector became very arrogant and told me then in that case there was nothing we could work out, he would start garnishing my wages.etc etc. I now have someone calling my work on a daily basis, i have stated to her with witnesses that i am not allowed these types of phone calls at my place of employment and yet she continues to call and upset and disrupt my work? Can she do this and can they garnish my wages if i am on welfare? I want to pay back this debt, but with one of my sons sick at Riley,more money is going out than is being taken in. WHat can I do to stop this harrassment?


Collectors can be legally stopped from further contacting you after sending a cease and desist letter.

It must be an illegal activity if they get a garnishment against you without a court order.

There is no SOL for student loans. And sending a cease and desist letter will not help because the collector will assume that you are avoiding to make the payments. You need to clearly mention in the letter that you want to repay the debts, but all communications must be done in writing only. You have to work out something and pay this student loan, otherwise it will always keep hanging over your head.


lrhall41

Submitted by mcranberra on Tue, 02/20/2007 - 15:08

( Posts: 524 | Credits: )


Quote:

It must be an illegal activity if they get a garnishment against you without a court order.

Nope. Administrative Wage Garnishment was authorized by Congress and they CAN garnish 15% of disposable pay without a court order.
DO NOT CEASE AND DESIST a student loan collection agency. It will immediately put you into wage garnishment. Student loan collects will NOT write personalized letters. Believe me....I did student loan collections for 10 years. Once a C&D was documented, we immediately went for garnishment.
Can you be garnished on welfare?? If an employer is paying more than $600 per month then yes they can.
However you have requested no calls at work...that is illegal.
My best advise would be to contact the student loan Ombudsman at http://www.ombudsman.ed.gov/ and file a complaint. Call the CA back thru the main switchboard number and insist on talking with the Director of Collections or a Qualifying Supervisor. Tell them that their collector has been calling you at work after you requested they do not call you which is in violation of the fdcpa. Tell them you are filing a complaint with the Ombudsman office. Then say good bye. You can also file a complaint with EDfund/CSAC EDFUND
Attention: Post Default Services
P.O. Box 419033
Rancho Cordova, CA 95741-9033
800.367.1590
or E-mail us at: pds(at)edfund.org
Send an email to them outlining your complaint.

Another good resource for Student loans is http://www.learnstuff.com/learn-about-student-loans/

In the meantime, I would recommend that you look at consolidating you loans thru http://loanconsolidation.ed.gov/borrower/borrower.shtml
Direct Loans offers an Income Contingent Repayment plan that you will automatically be placed in because of the default. With you low income, you will probably be assigned a zero payment. Interest will continue to accrue but the loan will be current. Each year your payment will be reset depending on your income. ''

Shout out if you need help.


lrhall41

Submitted by SOAPLADY on Tue, 02/20/2007 - 16:45

( Posts: 17315 | Credits: )