Student Loan collectors working for any of the contracted collection agencies must follow the
FDCPA. The
FDCPA is the Fair Debt Collections Practices Act and is the federal law that ALL collectors must follow.
§ 804. Acquisition of location information [15 USC 1692b]
This section deals with locating the borrower. Let's face it...students move often and many will depend on the post office to forward their mail. Bad move. In the student loan prom note, you agree to keep your borrower informed of your current address. Some older prom notes required this notification within 10 days.
The student loan collector gets your account from the guarantee agency with the last address and phone number on file. A first notice as required by law is automatically sent out upon placement. The collector will call the phone number on the file. If it is wrong, the phone number is removed and some form of directory assistance attempt will be made. Often the same last name at the address on file or nearby is obtained. Attempts will be made. Next step is calling the references that the borrower listed on the prom note. Usually these are family members and attempts are made to these numbers. Following the FDCPA, the collector can only leave their name and phone and name of agency only if asked. The CANNOT disclose the fact that they are collecting on a debt...not to mom, dad, fiance, priest or best friend. They may disclose the debt to a spouse, except when collecting in the state of MA.
Many times when I was collecting, I would hit a brick wall with parents and siblings being nosy or suspicious. More often than not, these messages were not passed on. Once the reference's were exhausted, the collector will continue skip tracing. I would leave a message with a neighbor. If the borrower lived in a small town, I would call the local library, a coffee shop or the bowling alley. I once called a coffee shop and talked with a waitress who ended up being the ex wife of a borrower. Without disclosing the debt, I got a ton of information including current employment and the borrowers bank account number. Ex spouses with a grudge are great!!!
Also, if the debt collector is notified that the borrower is represented by an attorney, he MUST deal with the attorney and cease all communications with the borrower.
§ 805. Communication in connection with debt collection [15 USC 1692c]
Ok...collectors may call you 7 days a week between the hours of 8am-9pm your time. It is not illegal to call on a Sunday or a holiday. Student loan collectors at most agencies will work hours that include both early mornings and late nights to cover all time zones. (This is a requirement of a lot of contracts) We usually had Friday afternoons off but worked either Saturday morning or Sunday evening. (This is pretty common with most agencies) Legally they can call you 365 days a year.
Debt collectors MAY call you at work...there is nothing illegal about it. HOWEVER you can stop them from calling you and I will quote the FDCPA here
(3) at the consumer's place of employment if the debt collector knows or
has reason to know that the consumer's employer prohibits the consumer
from receiving such communication.
So if you tell the debt collector
you are not permitted calls at work and then hang up on them, they MAY NOT call you again at work. If someone else like a coworker or receptionist tells them you are not permitted to have calls at work, they MAY NOT call again. Pretty simple. No letter is required.
If you do not wish any communication from a student loan collector at your home, you must do the request IN WRITING. I recommend that this request be done via certified mail, return receipt requested. No fancy letter is required. In plain english you simply state
"Please cease all communications with me in regards to account number a________. " You do not need to quote the laws...they know them.
Please note...they are permitted by the FDCPA to make one final call to you, to tell you that their efforts are being terminated or to notify the borrower that the debt collector or creditor may
invoke specified remedies which are ordinarily invoked by such debt
collector or creditor. With federal student loans, sending a cease and desist will probably result in your account being forwarded immediately to the Administrative Wage Garnishment program department, for your wages to be garnished.
§ 806. Harassment or abuse [15 USC 1692d]
A debt collector may not engage in any conduct the natural
consequence of which is to harass, oppress, or abuse any person in
connection with the collection of a debt. Without limiting the general
application of the foregoing, the following conduct is a violation of
this section:
(1) The use or threat of use of violence or other criminal
means to harm the physical person, reputation, or property of any
person.
(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
(3) The publication of a list of consumers who allegedly
refuse to pay debts, except to a consumer reporting agency or to persons
meeting the requirements of section 603(f) or 604(3)
1 of this Act.
(4) The advertisement for sale of any debt to coerce payment of the debt.
(5) Causing a telephone to ring or engaging any person in
telephone conversation repeatedly or continuously with intent to annoy,
abuse, or harass any person at the called number.
The agency I worked would not tolerate ANYONE violating this section. More than one collector was shown the door for semi abusive comments. Student loan contracts can lost or the placements downgraded for too many valid complaints.
What is not a valid complaint or harassment...
1.Calling you asking you that you pay your debt in full. You agreed to this when you signed your prom note.
2. Calling you if your payment is late is not harassment or abusive.
3. Telling you your wages could be garnished...student loan collection agencies actively garnish without a court order under the Administrative Wage Garnishment program.
4. Calling multiple times during the course of a day with no contact. If you are screening your calls and the collection agency continues to call, that is YOUR fault. Answer on the first attempt and they will not call you back on the same day.
What is valid harassment or abuse.
1. Foul language. Swearing. Degrading or racial comments.
2. Threats of violence or physical harm.
3. Continuing to call you back after you terminate the call.
4. Hanging up on you. A collector should not hang up with phone without notice....ie...slamming the phone down in your ear.
On more than one occasion I had abusive, hostile borrowers on the phone and the call was getting nasty. I would attempt to break in ....if the borrower continued the tirade, I would simply announce "I am terminating this call...have a good day!" and quietly hang up.
Keep in mind when working with a collection, you are NOT the customer. (The customer is the one who placed the account...the DOE, the school or guarantee agency) A collector should be polite but for the most part, do not expect customer service. Some collectors may come off as rude or aggressive....this is NOT illegal.
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