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Impact of Collection Agency Letters on Debtors

Nexa Collect

Collection agency letters can impact debtors, depending on factors such as the debtor’s financial situation, emotional state, and knowledge of their rights and responsibilities. Here are some potential impacts: Stress and Anxiety : Receiving a letter from a collection agency can cause significant stress and anxiety for debtors.

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How Can I Stop Student Loans from Taking My Taxes?

Credit Corp

However, due to the COVID-19 pandemic, student loan payments and collection attempts have been paused until September 30, 2021. If it does, you’ll receive a refund offset notice in the mail in advance of the proposed refund garnishment. To garnish—i.e., To correct errors and make a claim, contact the Department of Education.

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Congress Passes Relief for Student Loan Borrowers in CARES Act

Titan Consulting

Benefits include a suspension of payments, no negative credit reporting, no collection activity, and no accrual if interest until September 30, 2020. Benefits include the following: Suspension of Monthly Payments : The US Department of Education automatically suspended payments on outstanding federal student loans.

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Freedom Debt Relief Sued for Misleading Consumers

Debt Free Colorado

Deceives consumers about its fees : Freedom falsely claims that it charges consumers only when it negotiates a settlement of a debt and consumers make a payment under the terms of the settlement. If you have used the services of Freedom Debt Relief, you’ll want to keep an eye on this lawsuit as you may be entitled to damages.