U.S. Court of Appeals Gives Student Loan Debt Collection Lawsuit Second Chance

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The U.S. Court of Appeals for the Second Circuit has given new life to an unfair debt collection lawsuit stemming from a 2008 incident that saw a New York woman targeted for collection on a loan made prior to filing bankruptcy in 2001. As reported by The Wall Street Journal, the court revived her lawsuit after it was thrown out by a lower court.

The lawsuit charges that, using a letter, a debt collection agency attempted to collect the woman’s student loan debt of $2,469 in 2008, seven years after she filed for bankruptcy. The case was restarted due to the agency falsely informing the woman that her loan could not be wiped clean by filing for bankruptcy.

The U.S. Court of Appeals stated that the debt collector used “false, deceptive, or misleading” tactics because their letter stated that the woman’s account was “not eligible for bankruptcy discharge and must be resolved.” Currently, the woman and 181 others in New York will be seeking class action status based on similar letters they received from the same collector around that same time.

Santa Monica fair debt collection lawyer Howard D. Silver understands the difficult situation a person can be put in when suddenly faced with tenacious debt collectors and a large bill. Through skilled legal representation, the legal team at the Law Offices of Howard D. Silver can put an end to debt collectors’ deceptive practices. For further information on how we can help call (855) 341-2611.


Posted Date: 
Wednesday, February 18, 2015