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POEGER

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If I had a personal loan debt prior to beginning college, can I be kicked out of college?
I was contacted about a personal loan I took out in 2012. I was not contacted by the original creditor/lender. I lost my job I had at the time due to a tragic incident. Being so focused on having the incident resolved, I completely forgot about any personal loans I had. Since then, I have only had two different part time jobs with low pay. These jobs did not last long. It is now 2013, going into 2014, and this is the first time since obtaining the loan, I hear anything about the debt. I'm not saying I didn't think it would be a debt, I just have not received any attempts in the lender trying to have the debt resolved. I was contact by a lawyer and it was stated that if I do not pay the debt, then I would be kicked out of college since I receive financial aid. It was said that it was law for anyone with any outstanding debts with any lenders to not be able to receive financial aid. If this were true, I wouldn't have received financial aid to begin with right? My financial aid is based on need and not credit. Moreover, can they have me kicked out of college for a personal loan which I obtained over a year before returning to college? It has nothing to do with the funding of my education.

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BAD, BAD collector!!!

Helpful to 1 out of 1 people

IF this idiot "lawyer" contacts you about this loan again, get their name and the name and address of the company they represent.  It is a clear violation of the Fair Debt Collection Practices Act (FDCPA) for a collector to make any threats they cannot possibly enforce, and this dipstick clearly has!!  Debtor prison went out of fashion a long time ago.  You can look up FDCPA on the computer and you'll find it quite interesting (and empowering).

Now, do a search for the statute of limitations on collections and find what it is for your state, because it varies in every state.  While this debt may legally be collectable, it sounds as if the original creditor had written it off (very likely) and that the debt was sold to a collection agency (many of those can only be described in terms not fit for polite company).

Keep a log on these calls and notify the collector in writing that phone calls are inconvenient and all communications must be in writing via U.S. Mail.  FYI-You do want written evidence so you can have the proof should you decide to file a lawsuit against these idiots, as is your right.  Each violation of the FDCPA can get them fined $1000 which could go to you. 

Hope this helps. 

Reply by
POEGER

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Thank you very much for your advice. I knew there was something fishy about it. I will definitely take the steps you have suggested. Thanks again. :)

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