Will the DKos lawyers please take a look. How do we get itemized statements from the Student Loan Lenders? Copies of original Promissory Notes? All financial records? Without which, how can we know what they say is owed, is actually owed?
Yes, I have an adult child caught up in the Student Loan debacle. For a year, said adult child has asked for written statements to prove that the Collectors numbers match the loans originally taken out. NADA! Can't get written, detailed, monthly Student Loan Statements.
And I am not suggesting that those who took out Student Loans don't have an obligation to pay back the loans. But to do so without clear documentation from the Collectors raises my eyebrows. We are going to lawyer up!
However, after researching this issue, there is clearly some shell-game behavior by the lenders going on.
I do understand that Student Loans don't have the same consumer protections; however, isn't there a possibility that these loans are subject to contractual laws?
There is every indication and possibility that many Student Loan Debtors are at risk of overpaying, being unduly penalized with fees and interest hikes, and that their payments are being incorrectly allocated, UNLESS they are receiving clear, timely, and correct written statements from their lenders that prove otherwise.
The fast and furious push to take on Student Debt to attain a degree has created a mess on a scale as large or larger than the mortgage shell games.
I think it is up to each Debtor to DEMAND clear accounting and, lacking that clear accounting IN THE FORM OF MONTHLY WRITTEN STATEMENTS mailed via the US Post Office (who can certainly use the business), take action, in writing. What action?
I honestly don't know? Do you? Do States have a department to help if a SL Debtor is being jerked around?
There is a looming possibility that the Student Loan Collectors don't have a leg to stand on, any more than the Who-The-Heck-Owns-My-Mortgage-This-Month Loan collectors had.
SHOW ME THE PAPERWORK
You see, paperwork is very important to Judges as the following credit card case proves. There are laws and legal contractual precedence that, unless proven otherwise, may help Student Loan Debtors get out from under undue burden caused by collectors who lack standing AND proof of indebtedness.
UPDATE - HERE IS AN ANSWER! A COMMENT FROM BELOW. IT MAKES PERFECT SENSE TO ME (I edited format, added emphasis only):
by malenda on Mon May 28, 2012 at 02:37:27 PM PDTThe FDCPA should help
If the collector is an outside agency hired by the federal government, the Fair Debt Collection Practices Act will apply.
When a collection letter is received,
1. it should always state that the person has 30 days to request verification of the debt.
2. Upon receipt of the the notice of debt and within 30 days, send the collector a letter requesting verification of that debt. (By certified mail)
3. You should receive back a copy of the signed promissory note and a payment history for verification.
4. However, because these are so often sold to collection agency after collection agency, the verification may not exist.
5A. If it does not exist, one of three things will happen.
5B. The debt may be referred to an attorney for suit,
5C. the creditor will simply refer the debt to another collector, or
5D. the collection agency will show the debt as noncollectable and it will be dropped.
What happens will depend on whether the original promissory note can even be found.
It is not proper verification of debt to simply send an affidavit saying the debt exists.The debtor is entitled to the note.
Keep in mind that the provisions of the FDCPA do not generally apply to the federal government, so the government may simply keep any tax refunds for payment.
The Credit Card Collecter lost this case. I think the details of why the lender lost this case could be a precedent to use when fighting the Student Loan lenders: