Friday, January 27, 2012

Complying with the FDCPA to secure student debt

Hoping to get a higher education degree is overwhelming; but it really doesn’t mean that the student will be able to fulfill the financial needs to pursue academics. Most of times, you will come across students who are unable to pay fees for an educational course assuring them a brighter future. In such cases educational loans comes to the rescue. Yes, banks ensure a certain sum of money to finance the educational expenses of the students; but when the student is unable to repay the amount he is mainly subject to defaulted student loan status.

Debt collection agencies and they need to follow the FDCPA guidelines

During such crucial times, the lenders send debt collecting agents to realize the amount. However, the collection agency student loan should abide by the rules set by the FDCPA to assure fair debt collection methods. This is because debt collection agents are mostly rude in their approach and can adopt any unfair and illegal practice to realize the money from the debtor and all of these acts are forceful. They compel the debtor to pay the amount by harassing him.

The guidelines to follow by the collection agency student loan are given below:
  • The collection agent is strictly restricted from calling the debtor at unreasonable timings of the day. The debtor has the right to sue the collection agent if the later calls the former at inappropriate hours.
  • Sending postcards to debtors where it is clearly stated that the debtor is supposed to pay the amount, is highly unlawful.
  • Use of abusive terms and languages is highly punishable.
  • The FDCPA ensures that debt collector must never call up the debtor’s friends and relatives in order to realize the amount.
These are some of the major rules to abide by when the collection agency student loan is operating its control.

The author, Aalina Jones here provides smart suggestions on collection agency student loan. This article will certainly help people gather plenty of information regarding student loans.

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