Legal Question in Credit and Debt Law in Georgia

Legal Fee Dispute

I will try to be as brief as possible about this complicated matter. I had a student loan that was placed in default unjustly and without good reason and explanation back in June 2003. As a result of the reckless bahavior on the part of the lender, I turned the matter over to a third party for investigation.

In the meantime, the lender soon placed the loan with a collection agency. In the past month, I have been attempting to negotiate with the agency to pay on the loan. However, I refuse to pay any of the legal fees until the investigation has concluded.

The collection agency has stated that they will not take my payments if I do not agree to pay on the legal fees at the present time. I want to pay the balance of this loan because it is in the meantime collecting interest. Is this a form of extortion on the part of the colletion agency to refuse payment for the loan exclusively?


Asked on 1/10/04, 9:43 pm

1 Answer from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Legal Fee Dispute

The propriety of additional fees is covered in the loan agreement. It need be read. You can pay, and if there is an impropriety, you have a claim under the Fair Debt Collection Practices Act. This assumes that an attorney is involved in the demands. If not there are other considerations. I suggest you consult with counsel.

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Answered on 1/15/04, 1:21 am


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