Student Loan Collections

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DW received phone call today from CA claiming that she owed a defaulted student loan from 1989. That she defaulted on this loan in 1998 and has never paid it.

Now the Nineties were not a good time for us, being basically young and dumb. (Now we are old and not real bright)

Her history basically goes:

Defaulted in 1995

Consolidated all of her loans in 1996

Defaulted on the consolidation loan in 1998

Bought house in 2002 and as part of getting mortage we had to pay off her student loans. So we saved and begged and paid off her consolidated loan.

Now this jerk calls and tells her that there is another loan out there with the wrong name, and with a SSN # that is only one digit differant than hers and thus it must be hers. He further tells her that since it is a defaulted Federal loan he can start garnishment now without going to court.

We checked with the NSLDS system and it shows all of her accounts as paid.

Can anyone give advice on what we need to do?

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This was the exact kind of case the FDCPA was intended to be used for. Today's call was first contact I assume. Give them 10 days to send you the required 1692g(a) letter (they have 5 days, but some mail delay is expected, in any event it better be dated no later than 5 days from today.) If they illegally garnish, you will have actual damages on top of the 1k stats. And you may even have an intentional tort, which means punitive damages if it can be proven. If they persist, a NACA atty should jump on this like a fat kid on cake, since it's almost guaranteed that he's collecting his fees.

If after those ten days are up, you don't have a letter, a preemptive DV would be the route I took. And start recording those calls :)

Did they say whether or not the loan was federally guaranteed when you spoke with them (i.e. what type of student loan)?

Now we're old and not too bright

Brighter than most since you're here instead of rolling over for them!

Edited by LUEser
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