Deal with the collection agency at the time of Default of Student Loan
Well, returning the borrowed loan amount on time should be your foremost concern, whether you have collected it for buying property, car or for continuing to your studies. Otherwise, difficulties can stick your way. Yes, when you fail to repay amounts taken for buying properties or cars, your lender gets the right to seize these things for which you have borrowed the amount. In the other hand, default of student loan brings along greater troubles. Since, your education cannot be seized; collection agency student loan start searching way-outs for collecting the amount and often these are not good for the borrowers.
Ok, let us discuss what can be the possible consequences once you default in returning the student loan amount.
Once, you default in returning the amount, your lender starts visiting you again and again to let you remind of the amount which is to be return. They also start calling you often and then. Generally, collection agencies has automatic tele-callers, where they keep all the borrowers numbers together, so that the auto caller can call each of them one by one every day, sometime twice or thrice a day. It hampers the private and professional life of the borrowers.
Here, I should tell that default of student loan isn’t a crime. In this very situation of unemployment, underemployment, recession and economical crisis getting defaulted is quite obvious, so the collection agencies should not cross their limit for collecting the amount.
Well, to save yourself from the tortures of the collection agencies you must be well aware of your rights. Yes, the rights allotted by the Fair Debt Collection Practices Act (FDCPA) can protect you from the illegal tortures of the lenders.
According to this act, the lenders cannot call you often and then as they want. Moreover, if the borrowers write a notice to the lenders to stop their calls and visits, they have to listen to the borrowers’ notice. Any illegal step from the collection agency student loan can put them behind the bars. Even, they cannot use abusive languages against the borrowers and any kind of threats are strictly prohibited.
Certainly, it is very important for you to be aware of your rights because the more you will be concern of your rights the less it risks of being cheated by the others. So, when the situation is of default of student loan, don’t let the collection agency student loan rule upon you because you have rights to stop them.
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