Is there a limit that debt collectors can take in a month?
I defaulted on a student loan, and have set up a payment plan with the loan collections company (the loan was sold). They are taking a large chunk of money out of my account, every other week, almost like garnishing wages, but it’s just an automatic withdrawal. The amount that is being taken is over half of my take-home earnings, and I’m a little concerned that they are taking more than they can legally force me to pay. Is there a way I can force them to lower the monthly withdrawal?
I know there is a limit for wage garnishment, but I’m wondering about the loan repayments.
There is no set limit but according to FSA, you are allowed to work out a repayment plan that is affordable to you and I will quote what they say “All guaranty agencies and the U.S. Department of Education (Department) will accept regular monthly payments that are both reasonable to the agency and affordable to you. You should call us at 1-800-621-3115 and one of our customer service representatives will assist you with determining a repayment amount that is right for you.
You can find the listing of the authorized guaranty agencies hired by the govt to collect student loans at the following web link
http://www.ed.gov/offices/OSFAP/DCS/collection.agencies.html
Each of the Department’s contracted collection agencies has set up a “Special Assistance Unit” to address customer concerns. If your account is assigned to one of the contracted collection agencies, and you have concerns about their servicing of your account, the Department of Education requests that you call the Default Resolution Group call center at 1-800-621-3115. They will direct you to the correct Special Assistance Unit personnel.
If the Special Assistance Unit is not able to resolve your concern, you may file a written complaint. The Department of Education says that the Default Resolution Group takes all complaints seriously and takes action as necessary to resolve the issue. To file a written complaint, you should send a letter with any evidence to:
Chief of Contract Analysis and Compliance
US Department of Education
61 Forsyth Street, SW 19T89
Atlanta, GA 30303
