hollypicklefox Posted January 16, 2008 Report Share Posted January 16, 2008 I have a defaulted student loan that I am interested in having rehabilitated. The CA contracted by the DOE to collect on this debt is calling me at work, causing an already stressful situation to become worse. I fully intend to return this call ASAP and inquire about rehabilitation. However..I have two questions.1.) In my case, does the FDCPA apply to my situation regarding the phone calls to my place of employment? 2.) Is there any requirement stating that the payments in rehabilitation must come through automatic draft? I don't see ANYTHING on the DOE or FSA sites indicating this is the case, however I am sure that when I call to make arrangements the CA will insist that I pay by draft. Can they force me to do this as a condition of rehabilitation? Please help. 1 Link to comment Share on other sites More sharing options...
Robert Nashville/Savannah Posted January 16, 2008 Report Share Posted January 16, 2008 Yes to the best of my knowledge, the FDCPA applies even to a collection agency collecting on a federally guaranteed student loan meaning all the protections, including protections against calls at work, are in force.No, there is no law or rule that I’m aware of that requires a student loan, defaulted, in rehab or otherwise, to be paid by automatic draft form your bank account.HOWEVER…What can be done to a person without due process when it comes to student loans is second only to what the IRS can do to a person.MEANING…If this is your legitimate debt, as it appears to be, I strongly advise you to work with this CA and be as honest and up front with him as you can including letting him draft your bank account to get your loan rehabilitated...try and negotiate when you communicate by phone and feel free to ask they not call you at work, etc but I woudl be very cautious about trying to demand your rights.I would, however, suggest you set up a checking account at a different bank JUST FOR THE PURPOSE OF LETTING THEM DRAFT so that they can’t take any more than you and they agree to take, on the date you agree to and so that they don’t have an easy route to knowledge of your primary bank accounts. Bear in mind my advice woudl be quite different if you thought this CA was trying to scamm you and/or this wasn't a letitimate debt. Link to comment Share on other sites More sharing options...
Noel Gallagher Posted January 16, 2008 Report Share Posted January 16, 2008 Hello!I hope this might help. I had quite a number of SLs in default and had tickets for the express train to Garnishmentville. I was being called by all sorts of horrible collection agencies asking for down payments auto drafts, the whole kit and kaboodle.I was just at the point of working something out with a CA when the representative said his name (obviously an alias) was Jim Jones. Yeah, that Jim "don't drink the Kool Aid" Jones. I asked him if he was kidding and his supervisor got on the phone. It finally dawned upon me that if I were to be successful in this endeavour, it would not be with the assistance of poorly educated, grubby litlle phone drones with bad names. In addition, the amount they wanted down and per month could have funded a few days of the Iraq war. So, I gave the the third and fourth letters of the alphabet and hung up.Upon hanging up, I went straight to the checkbook and fired off a check DIRECTLY to the USDOE Payment Address in Greenville. No letter, no "Hi, how are ya," but just a check with the account number.Did the same thing the next month and the next. And the next and the next. Last week, I received a letter from DOE that congratulated me on my rehab, let me know that I was going right back to the DSLSC. The monthly amount was several hundred dollars less than the greedy CA wanted, and no down payment. So, try taking Frank's advice: DO IT YOUR WAY! Link to comment Share on other sites More sharing options...
Robert Nashville/Savannah Posted January 17, 2008 Report Share Posted January 17, 2008 Hello!I hope this might help. I had quite a number of SLs in default and had tickets for the express train to Garnishmentville. I was being called by all sorts of horrible collection agencies asking for down payments auto drafts, the whole kit and kaboodle.I was just at the point of working something out with a CA when the representative said his name (obviously an alias) was Jim Jones. Yeah, that Jim "don't drink the Kool Aid" Jones. I asked him if he was kidding and his supervisor got on the phone. It finally dawned upon me that if I were to be successful in this endeavour, it would not be with the assistance of poorly educated, grubby litlle phone drones with bad names. In addition, the amount they wanted down and per month could have funded a few days of the Iraq war. So, I gave the the third and fourth letters of the alphabet and hung up.Upon hanging up, I went straight to the checkbook and fired off a check DIRECTLY to the USDOE Payment Address in Greenville. No letter, no "Hi, how are ya," but just a check with the account number.Did the same thing the next month and the next. And the next and the next. Last week, I received a letter from DOE that congratulated me on my rehab, let me know that I was going right back to the DSLSC. The monthly amount was several hundred dollars less than the greedy CA wanted, and no down payment. So, try taking Frank's advice: DO IT YOUR WAY! While I'm glad your method worked for you, I wouldn't expect it to work very often and/or for very many people.I'd advise anyone dealing with defaulted student loans to be very cautious - they can turn your life upside down with essentially no warning. Link to comment Share on other sites More sharing options...
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