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Experiences with private student loans?


almostfree
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Has anyone been sued for a private student loan?

 

I think I know the basics with student loans.  This alleged loan is a private student loan (ie. not government backed).  I understand they cannot be discharged in bankrupcy, but the statute of limitations does apply.

 

My question is has anyone been sued on a private student loan? Sold to a JDB?  Or did you have a private student loan where the SOL expired?

 

I have an alleged private student loan and am about a year from the SOL expiring.  Just trying to see what the likelihood of running out the SOL is. 

 

Haven't heard from them in months, but from about 3 years ago to about 6 months ago, heavily tried to collect.  Passed back from CA to OC to CA every 6 months.

 

Any experiences shared will be appreciated.

 

 

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Has anyone been sued for a private student loan?

 

I think I know the basics with student loans.  This alleged loan is a private student loan (ie. not government backed).  I understand they cannot be discharged in bankrupcy, but the statute of limitations does apply.

 

My question is has anyone been sued on a private student loan? Sold to a JDB?  Or did you have a private student loan where the SOL expired?

 

I have an alleged private student loan and am about a year from the SOL expiring.  Just trying to see what the likelihood of running out the SOL is. 

 

Haven't heard from them in months, but from about 3 years ago to about 6 months ago, heavily tried to collect.  Passed back from CA to OC to CA every 6 months.

 

Any experiences shared will be appreciated.

 

Sallie Mae is suing me now on the "Breach of Contract" for Career Training  not Guaranteed Private Student Loan

which is out of AZ SOL4 for contracts signed and executed out of AZ (it was in FL in 2001).

 

This is the link to my topic:

 

http://www.creditinfocenter.com/community/topic/321819-sallie-mae-vs-me-in-arizona-2013/

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No, mine is not Sallie Mae. 

 

I looked at your link, interesting.  From what I could see you should be OK because the SOL appears to have expired, if Arizona is a 4 year SOL.  If I'm not mistaken, sueing on a time barred debt is a violation of the FDCPA.  Maybe talk to a consumer lawyer, which if the collection agency violated the FDCPA would get the attorney's fees paid by the party violating the FDCPA.  That way if the SOL is expired which should make it a completely winnable case for you, you don't lose it by having some technicality that you didn't know being a pro se.

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No, mine is not Sallie Mae. 

 

I looked at your link, interesting.  From what I could see you should be OK because the SOL appears to have expired, if Arizona is a 4 year SOL.  If I'm not mistaken, sueing on a time barred debt is a violation of the FDCPA.  Maybe talk to a consumer lawyer, which if the collection agency violated the FDCPA would get the attorney's fees paid by the party violating the FDCPA.  That way if the SOL is expired which should make it a completely winnable case for you, you don't lose it by having some technicality that you didn't know being a pro se.

@almostfree,

 

I agree, that suing for time-barred debt is FDCPA violation ....

 

However, the Judge is not thinking that way (for now) ....

 

AZ SOL for contracts in writing is 6 years if the contract is signed and executed in AZ (A.R.S. 12-548).

"Contract in writing for debt; six year limitation; choice of law"

 

http://www.azleg.state.az.us/ars/12/00548.htm

 

However, in the cases (like mine) the SOL for contract in writing made out of AZ is 4 years

"Bond to convey realty; partnership account; account between merchants; judgment or instrument given or made without the state; four year limitation"

 

http://www.azleg.state.az.us/ars/12/00544.htm

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This may be another reason to talk to a lawyer who deals with student loan debt in your state. They would know exactly which sol applies but more importantly how to argue it. I know in some states promissory notes which student loans can be, have a different sol than a written agreement.

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This may be another reason to talk to a lawyer who deals with student loan debt in your state. They would know exactly which sol applies but more importantly how to argue it. I know in some states promissory notes which student loans can be, have a different sol than a written agreement.

 

Actually, I had one "free" online exchange with such consumer lawyer who said that I was right about AZ SOL4 for this Promissory Note signed and executed outside of AZ. AZ laws treat any Promissory Note as a Contract in writing.

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Has anyone been sued for a private student loan?

 

I think I know the basics with student loans.  This alleged loan is a private student loan (ie. not government backed).  I understand they cannot be discharged in bankrupcy, but the statute of limitations does apply.

 

My question is has anyone been sued on a private student loan? Sold to a JDB?  Or did you have a private student loan where the SOL expired?

 

I have an alleged private student loan and am about a year from the SOL expiring.  Just trying to see what the likelihood of running out the SOL is. 

 

Haven't heard from them in months, but from about 3 years ago to about 6 months ago, heavily tried to collect.  Passed back from CA to OC to CA every 6 months.

 

Any experiences shared will be appreciated.

 

@almostfree,

 

I also wanted to answer your original question.

 

Your State SOL can be applied to your Private Student Loan if it's not guaranteed by Federal/State Government or any Private Guarantee Agency (like TERI or HEMAR ...).

 

http://www.law2.byu.edu/jpl/Vol%2020.1/2Roper.pdf

 

Your alleged OC/JDB still has enough time to prepare a lawsuit and to file it just in couple days before your SOL expires.

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  • 3 weeks later...

This may be another reason to talk to a lawyer who deals with student loan debt in your state. They would know exactly which sol applies but more importantly how to argue it. I know in some states promissory notes which student loans can be, have a different sol than a written agreement.

 

@almostfree,

 

Yes, you are right: Promissory Notes (as Installment Contracts) are different from 

simple written contracts:

 

"When an installment contract contains an optional acceleration clause, though, an action as to future installments does not accrue until the holder exercises the option to accelerate."

 

"—claim for balance due accrues when creditor exercises optional acceleration clause, not when first payment is missed."

 

Baseline Financial Services v. Madison, 278 P.3d 321, 229 Ariz. 543 (Ct. App. 2012)

 

http://scholar.google.com/scholar_case?case=10069423147809869705&q=info:iY9NugDHvYsJ:scholar.google.com&hl=en&as_sdt=0&oi=scholarr

 

citing

 

Navy Federal Credit Union v. Jones, 930 P.2d 1007, 187 Ariz. 493 (Ct. App. 1996)

 

http://scholar.google.com/scholar_case?case=15782885798288495665&q=info:MRSLIQMTCNsJ:scholar.google.com&hl=en&as_sdt=0&oi=scholarr

 

Acceleration Clause means that a creditor has a right to demand the Whole Balance Due immediately.

 

This Demand's date is actual accrual date for Promissory Notes/Installment Contracts.

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