Legal Question in Credit and Debt Law in California

Agency Collecting on Breached Contract

Hello! I am being charged by the Department of Education on a breached contract because the school I was attending closed before the full term of the contract was completed. I was paying on the loan when one of the collecting agencies told me that I did not have to pay as they refused my monthly payments of $30.00 per month as agreed. Now they have arranged to take the income tax refund now years later. I had also provided them with a writ from my physician regarding my disability and they told me that they did not discharge the debt based on disability, but they sent me a discharge by disability form that was completed by my physician (now retired). I have not been able to continue my education because of the debt as scholorship and other educational loans have been denied since attending the The Columbia School of Broadcasting which closed during 1986 and I have not been satisfied with the loss of being able to attend an acredited college or university as a result of cruel and opressive collection tactics by agents and collection agencies. Can I sue for abusive and misleading negotiations and breach and aggrivation, as well as being neglected so I can never obtain a higer edu


Asked on 1/27/09, 5:33 pm

1 Answer from Attorneys
Joshua Swigart Hyde & Swigart

Re: Agency Collecting on Breached Contract

Third party debt collectors are still subject to the FDCPA even though they are collecting on student loan accounts. If the school closed and you were not able to complete your education you do have options. You need to take action before they get your tax refund.

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Answered on 1/27/09, 5:40 pm


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