January 12, 2009

Debt Collection Student Loans

My question is about student loans. If you find that the student loan collection agency–like Sallie Mae–violated the FDCRA do they have to pay per violation? It’s a $1,000 per violation, right?

Jansen

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Hello Jansen,

The FCRA is per violation. The FDCPA is normally $1,000 total statutory award per lawsuit (although FDCPA multiple statutory damages have been awarded). You normally want to catch them in more than one violation so that the bona fide error defense would be a stretch.

Read: Student Loans & the FDCPA

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice. Please consult an attorney for legal advice.

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