This case stems from a class action lawsuit in regards to student loan debtors. A class of student loan debtors was able to declare bankruptcy on their private student loans. However, one debt collection company still continued to demand payment on these discharged loans. An expert in debt and credit was sought to discuss how debt collection companies collect a debt and the parameters of debt collectors who attempt to collect from a discharged bankruptcy.
Question(s) For Expert Witness
- 1. Please describe your familiarity and experience working with student loan debt collection.
- 2. What is the fiduciary duty of a debt collector if the debt was discharged during bankruptcy?
Expert Witness Response E-210486
I have worked in both first party and the default department of a company that services and collects on student loans. I have helped students get back on track with their payments by offering programs or payment options. I also help students settle a lot of their debt when they are interested and able to relieve themselves of the debt. If the debt is discharged during bankruptcy, the duty of the collector is to not contact the consumer going forward. The collector should place the consumer in bankruptcy status, even at first notification, and discontinue contacting them from that point forward. I have had plenty of cases where the consumer advised me that they are filing bankruptcy. The protocol at that point is to collect the attorney or firm information and case number, if available, and put the information in the system to prevent the dialer from calling them.