BudLady855

Student Loan Default

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I have a collection agency called Pioneer Collections claiming that I have a student loan in default, I have no such loan attached to my name or SSN, they have even sent a "garnishment" letter to my employer claiming they are from the Fed Govt but when I called to find out what was going on, it was not the govt at all, just a collection agency, anyone have any advice on how to get these nuts to leave me alone?

 

Thanks,

LadyBudJr

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I have a collection agency called Pioneer Collections claiming that I have a student loan in default, I have no such loan attached to my name or SSN, they have even sent a "garnishment" letter to my employer claiming they are from the Fed Govt but when I called to find out what was going on, it was not the govt at all, just a collection agency, anyone have any advice on how to get these nuts to leave me alone?

 

Thanks,

LadyBudJr

 

Pull your credit reports ASAP.  It is entirely possible that someone committed ID theft and used yours to get student loans.  

 

Second you need to DV them in writing NOW because the government employs its own collection agencies on defaulted federally backed student loans.  They do NOT have to sue you to garnish your pay.  All they have to do is submit the order.  Undoing that is going to be REALLY hard.

 

This is NOT like credit card debt and you are going to have to be aggressive until it is cleared up.  What ever the error is.

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A collection agency cannot "garnish" your paycheck absent a court order.

 

If there is no student loan default in your name you need to send a DV letter immediately to the collection agency and dispute the debt.

 

Send Certifited Mail Return Receipt Requested.

 

Give a copy to your employer if necessary to show that it is not a legal garnishment.

 

Depending on the state you live in there are or may be other protections against scum like this.

 

If you need help you can post the Garnishment letter they sent to your employer here on this forum or you can fax it to me directly 800.446.7380.

 

There are plenty of folks who would ejoy helping in such a situation including myself.

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You need to find out what is going on, before anyone can really give you any advice.  If it is a Federally backed student loan, they can garnish your wages without a hearing, summons or any Court action and they do not have to follow State exemption limits.

 

How would the collection agency be tied into all of this? I'm not certain but the Fed Gov't does employ collection agencies to collect on their behalf.

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A collection agency cannot "garnish" your paycheck absent a court order.

 

Give a copy to your employer if necessary to show that it is not a legal garnishment.

 

When it comes to federally backed student loans YES THEY CAN garnish without a court order.  That is the one case outside of taxes that they can.  All the government collection agency has to do is show they made a specific number of attempts in writing to contact the consumer regarding payment which were not responded to and that no payment was made.  

 

From this website:  http://www.garnishmentlaws.org/student-loan-wage-garnishment/

 

Student Loan Garnishment Process

The main difference between the garnishment of federal and private student loans is that the Federal Government can conduct what’s called an Administrative Wage Garnishment, meaning they don’t have to obtain a court order to begin the garnishment

 

If this letter is from an authorized government collection agency that may be ALL they need to give your employer to garnish your wages.  DO NOT delay in responding to this notice.

 

I also would NOT be faxing any of my personal documents to ANYONE on the internet.  Especially one that clearly does not understand the collection process when it comes to federally backed student loans.

 

According to this site:  http://www.finaid.org/loans/collectionagencies.phtml

 

Pioneer is indeed an authorized collection agency for federally backed student loans.  This is NOT a scam.  That letter to your employer likely authorizes wage garnishment and simply telling them you have no loan is not enough to stop it.  Blisko is completely wrong on this and the longer you delay the more difficult this is going to be to solve.  

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Thank you for all of your replies. My husband made this post when this first arose last year. Nothing has come up since then until now.

http://www.creditinfocenter.com/community/topic/314446-student-loan-private-debt-collector/#entry1172872

I called the number given to him in this post, followed the prompts and nothing came back in my name. So I stand confused. Should I first send Pioneer a DV letter and provide a copy to my employer? With sending them a DV letter, will this halt any garnishment until they can provide proof of the debt? Any suggestions, examples for the DV letter that I should use?

Again, I thank everyone for your time and assistance.

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Thank you for all of your replies. My husband made this post when this first arose last year. Nothing has come up since then until now.

http://www.creditinfocenter.com/community/topic/314446-student-loan-private-debt-collector/#entry1172872

I called the number given to him in this post, followed the prompts and nothing came back in my name. So I stand confused. Should I first send Pioneer a DV letter and provide a copy to my employer? With sending them a DV letter, will this halt any garnishment until they can provide proof of the debt? Any suggestions, examples for the DV letter that I should use?

Again, I thank everyone for your time and assistance.

@BudLady855 - Sending in a DV letter will not stop any garnishment.  You need to file a motion to vacate any judgment that the garnishment would result from.  

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You need to find out what is going on, before anyone can really give you any advice.  If it is a Federally backed student loan, they can garnish your wages without a hearing, summons or any Court action and they do not have to follow State exemption limits.

 

How would the collection agency be tied into all of this? I'm not certain but the Fed Gov't does employ collection agencies to collect on their behalf.

 

The do employ CA's to do some of the work at first.

However, when the garnishment demand comes to your employer, it is not from the CA, it is from the DOE.  And they send a letter to you at the same time they do it--again, not from a CA, but from the Dept of Education.  I know this firsthand. :)

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The do employ CA's to do some of the work at first.

However, when the garnishment demand comes to your employer, it is not from the CA, it is from the DOE.  And they send a letter to you at the same time they do it--again, not from a CA, but from the Dept of Education.  I know this firsthand. :-)

 

Not so. My son defaulted on his loan back in 2005. He was unemployed back then and had no way of paying it back. Few attempts were made to collect back then. He's back on his feet and gainfully employed with a well paying job. He was contacted by an authorized DOE CA with the notice to garnish. My son called the DOE to attempt to pay it back directly to them but was told he had to deal with the CA. He paid it off in a lump sum and avoided the garnishment. So it appears that authorized agencies are quite capable of enforcing a garnishment. The agency he dealt with was ConServe.

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Not so. My son defaulted on his loan back in 2005. He was unemployed back then and had no way of paying it back. Few attempts were made to collect back then. He's back on his feet and gainfully employed with a well paying job. He was contacted by an authorized DOE CA with the notice to garnish. My son called the DOE to attempt to pay it back directly to them but was told he had to deal with the CA. He paid it off in a lump sum and avoided the garnishment. So it appears that authorized agencies are quite capable of enforcing a garnishment. The agency he dealt with was ConServe.

@Eloise - Interesting.  The OP still needs to find out what is going on and report back.  

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@admin - agreed. The OP has quite a mess to deal with. I just don't want him/her to think they are safe from the garnishment because it's a CA. I believe Pioneer had my son's account for a while, but back then there was nothing much to garnish so no attempt was made.

 

I hope they get it straightened out if it's not their loan.

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While Pioneer may be the collection agency involved in the collections process, they, themselves, are not from the Federal Government.

§ 807.  False or misleading representations  [15 USC 1962e]

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.

Since they are not from the federal government and are just hired by them to purport collections they falsely represented themselves.

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You need to find out what is going on, before anyone can really give you any advice.  If it is a Federally backed student loan, they can garnish your wages without a hearing, summons or any Court action and they do not have to follow State exemption limits.

 

How would the collection agency be tied into all of this? I'm not certain but the Fed Gov't does employ collection agencies to collect on their behalf.

 

While this may be true, you still have the right to request a hearing before an administrative law judge to make a determination of whether you should be garnished or whether the collection agency must enter you into a repayment plan that meets your budget.  At this hearing, you can contest whether the loan is actually in default or the amount of the debt, or you can tell the judge that you want to enter into a payment plan.

Student loan collectors are advised by the Federal government to offer payment plans based on the person wages, they cannot just simply ask for what ever they want. Borrowers in default have a statutory right to such a payment plan, based on financial circumstances.

I will also say that those collection agencies that are contracted by the DOE cannot in any way misrepresent themselves as being a Government entity or part of the Federal Government. They are simply a private collection agency under contract with the Government.

 

 

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