It comes as no surprise to us that student loan companies are misleading borrowers while continuing to collect on debts that were wiped out in bankruptcy. A recent study found that student loan services are intentionally misleading borrowers and telling them they still owe money for student loans even in situations where the loans were wiped out in bankruptcy. Government regulators are convinced that student loan companies and servicer will pay fines but continue their illegal debt collection practices anyway. Another issue Is that student loan companies and servicers are wrongfully telling borrowers that their loans are not eligible to be wiped out in bankruptcy even in situations where they are. There are currently 2.6 million student loan borrowers carrying more than $50 billion in student loan debt with student loans eligible for discharge. Sadly, they may never know because the student loan companies and servicers continue to lie to them.
It is obvious our financial system is broke. What are the point of laws if the companies they are designed to protect you against simply ignore them, or if the punishment is not deterrent for their conduct. The best thing any consumer can do when dealing with student loan companies, services, debt collectors or considering bankruptcy is to call Florida Consumer Lawyer.