Debt Problems
Does Tennessee law require notice before sending a debt to collections?
My husband defaulted on a student loan through the Tennessee State Assistance Group and it went to collections. He never received notice of his loan being in default or going to collections because he has been living in Indiana. Does a business in Tennessee have to give notice to a person before sending their debt to a collection agency?
Public Comments
- No. A statement is not legally required from any creditor. The law assumes that you know you owe the debt so it is your responsibility to notify a lender if you have moved and make payment arrangements. Student loans, unlike regular are not dischargeable unless extreme circumstances exist, in which case a judge would have to rule on. So this debt will follow your husband until it is paid in full.
- Chances are a notice was sent but since he was not in the state at the time and failed to provide them with a current address, the notice was returned. Now that it is in the hands of a collection agency, you will have to pay the debt. Student loans do not fall under the same rules as most other debts. The statute of limitations on defaulted student loans was eliminated by the Higher Education Act. Section 484A removes all limitations and gives the Department of Education or the guaranty agency (bank or lender) the ability to file suit, enforce judgments, initiate offsets, or other actions, to collect a defaulted student loan regardless of the age of the debt. Statutes of limitation are no longer valid defenses against repayment of a student loan.
