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  1. #1

    US Marshals Now Arresting People for Failing to Pay Student Loans

    I am finding reports that the federal government is now hiring private debt collectors for past due student loans. Those debt collectors are then getting judgments against the debtors. And when you fail to pay, those attorneys ask for - and are getting - judges to issue arrest warrants.



    So, if you are past due on your student loan debts, you might be getting a knock on the door from the US Marshals service.
    Current Fico Scores: 710 TU, 732 EQ
    My Goal for 2016: 750+

  2. US Marshals Now Arresting People for Failing to Pay Student Loans
  3. #2
    Registered User Senior Member
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    165
    Isn't this a little like debt slavery?

  4. #3
    Registered User Senior Member
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    240
    This guy got arrested over a $1,500 balance! Wow!

  5. #4
    Registered User Senior Member
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    189
    On and off, I think this has been going on for quite some time. In this case, I think the guy failed to answer a summons, so he was arrested for contempt.

  6. #5
    Registered User Senior Member
    Posts
    112
    I think you might want to check to facts on this. I believe the man was arrested because he failed to appear in court on several occasions.

    And that after appearing he was released. It seems unlikely he had to stay in jail overnight.

  7. #6
    @Michelle: Thanks for the tip. You are right. This guy was arrested for failing to appear in court - despite getting several summonses.

    You can read more of the details in this article.

    But digging deeper, I learned a couple of things. Some debt collectors have used the illegal tactic as posing as law enforcement to try to collect student loan debt. So threat from debt collectors is nothing new.

    People struggling with debt and student loans should know to contact the authorities like the FTC if they are ever threatened with arrest over a debt.

    But they should also definitely show up in court when they are told to. Because while debtors prisons were eliminated by law in the late 1880s, you can be arrested for contempt of court. And that is how most debtors end up in jail - they fail to appear when summoned for a hearing or trial about their debt.

    Also, you need to be aware that the government says: "If your loan is placed with a collection agency, you will be responsible for costs incurred to get payment. The holder of your loan can take other actions to collect as well."

    Those "other actions" can include garnishing your tax refund and even garnishing your wages.
    Current Fico Scores: 710 TU, 732 EQ
    My Goal for 2016: 750+

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