Legal Question in Credit and Debt Law in California

Loan Rehab Payments

My student loan is under a loan rehablitation through a collection agency. I have be making monthly payments, but

the agency has been applying my payments to the interest each month and not the prinicipal. I have previously requested that they apply my full payments to the principal as not to contine to accrue interest on a higher balance, but nothing has changed. I there legal action I can take to make them do is? Can I be compensated for past interest accrued on the higher principle since my payments have not be applied to it?


Asked on 4/15/02, 2:34 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Loan Rehab Payments

it is commom for them to do this and it is not illegal unles your contract specifically allows for something different.

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Answered on 4/15/02, 5:08 pm


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