First party debt collector lying

G

GrumpyWillis

New Member
Jurisdiction
Tennessee
I am getting contacted by a company named ARCHMI formerly United guaranty regarding an ancient PRIVATE student loan originating with citi bank. (No payment by me since 2011). They claim there was a payment made August 2016 but that would still put this debt outside of the statute of limitations (6 years in TN, correct?). I asked for proof of this payment and they said it was $5 that was moved out of the account and right back in and may have been an error but it still reset the SOL. But that was August 2016. I'm a little afraid they may try that again. I recorded the phone call today so hopefully that helps. The man claimed the debt is not outside the statute of limitations at all and kept pushing me to pay it. He is definitely lying to me and I'm not sure if I can do anything. Since they are the owner of the debt are they bound by the fdcpa? I googled it and it says only 3rd party collections are. I am feeling harassed at this point because of the lies. I never acknowledged the debt as mine on the phone. I just said it sounds like it's outside the SOL but that the debt wasn't immediately recognized by me and they are free to send me paper work by mail for me to review and compare to my records. I don't plan to call them back or speak to them on the phone again. But they are calling nearly every day and from a different number each time.

what should I do? I know I legally don't have to pay this loan back. I feel like they should be held accountable for lying to me in order to get a payment on a debt but I don't know what the rules are given they're technically a first party collector.

Thanks for the help.
 
Here is TN's own version of the FDCPA. It also doesn't appear to apply to first party collections.

Tennessee Fair Debt Collection Practices Act (fair-debt-collection.com)

thedavephan said:
I feel like they should be held accountable for lying to me
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Oh, get off your high horse. You stiffed a lender out of a great deal of money and now you're whining about a few phone calls.

Ignore them. Write a cease and desist letter if you want to. They know that the SOL line they are giving you is BS and they aren't going to spend the money on a lawsuit that they are likely to lose.

Meantime, tell them to eff off and block their calls. Change your phone number is you have to.
 
thedavephan said:
what should I do? I know I legally don't have to pay this loan back. I feel like they should be held accountable for lying to me in order to get a payment on a debt but I don't know what the rules are given they're technically a first party collector.
Click to expand...

Here's your problem, mate.

Our government treats student loans differently than other debts.

For example, using bankruptcy, one can resolve onerous debts.

However, student debts can't be discharged via that process.

Here's information on the SOL listed by state:

State-by-State Guide to the Statute of Limitations on Debt

These days, a recipient's social security benefits can be taken to satisfy student loan debt.

Social Security benefits can be taken to pay student loans in default

Now, here's the skinny on student loan debt and the SOL.

The Higher Education Technical Amendments of 1991 eliminated the statute of limitations for federal student loans (previously 6 years). Lawsuits and collection measures can therefore be initiated at any point in time.

The Secretary amends the Student Assistance General Provisions. These amendments are necessary to implement the Student Right-to-Know Act, as amended by the Higher Education Amendments of 1991, and the Higher Education Technical Amendments of 1993. These | Knowledge Center
...


https://www.govinfo.gov/content/pkg/STATUTE-105/pdf/STATUTE-105-Pg123.pdf
...



The laws are different for private student loans. The payment of private student loans is typically dictated by promissory notes, which are governed in all states (with the exception of New York) by Article 3 of the 1990 Uniform Commercial Code. While this statute requires that actions to collect unpaid debts be commenced within 6 years of the due date, there are state and federal consumer protection laws that prohibit most types of consumer debt from being embodied in a promissory note. In other words, lenders and debt collectors will likely have to consider student loans as written contracts when trying to collect. The SOL for written contracts varies by state from 3 to 15 years. It begins to run when the breach of contract occurs and resets whenever you make a payment. In some states, the SOL will also start anew if you agree in writing to make a payment or that you owe money in the first place.
 
adjusterjack said:
Here is TN's own version of the FDCPA. It also doesn't appear to apply to first party collections.

Tennessee Fair Debt Collection Practices Act (fair-debt-collection.com)



Oh, get off your high horse. You stiffed a lender out of a great deal of money and now you're whining about a few phone calls.

Ignore them. Write a cease and desist letter if you want to. They know that the SOL line they are giving you is BS and they aren't going to spend the money on a lawsuit that they are likely to lose.

Meantime, tell them to eff off and block their calls. Change your phone number is you have to.
Click to expand...





Not sure you had to be rude. No high horse here. I just expect everyone to play by the rules. The lending was predatory in the first place with interest rates that changed over time, so high it was meaningless to pay in the end because paying the minimum payments just caused the balance to grow. I filed bankruptcy in 2010 and because of the silly rules it didn't cover this debt. I paid until I could not pay and they didn't offer me any options for paying back the loan on a hardship plan with low interest or a reduced amount. I tried and tried to make any kind of plan. They refused. So now they don't get anything. I didn't ask what type of horse I was on, I was asking about the law. I'd appreciate it if you didn't comment on my posts any longer.
 
GrumpyWillis said:
So now they don't get anything.
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Regrettably, they'll get their loot, sooner or later.

The only way you'll prevent them from getting their ALLEGED amount owed is by dying.

Until you pass over, they'll hound you in every way possible.

They'll confiscate any federal tax money you're owed.

Heck, these beasts will even commandeer your social insecurity money, when that time arrives.

They'll monitor any money that comes your way.

In some cases, they'll initiate legal actions to get the money they allege you owe.

I wish you well, mate.

Know this, the only way to rid yourself of the aggressive actions pursuant to the alleged debt, short of dying, pay the pirates the tribute they demand.
 
Federal student loans do not have a statute of limitations. Private ones do. Even with a federal backed loan, the lender can still come after you.
 

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