I recently posted about three private student loans that were charged off by Key Bank. I had been approved for a forbearance on my student loans by Great Lakes, who serviced both my federal and private student loans, and falsely assumed that the forbearance applied to all of my loans. I did not realize that payments were still due on my private student loans until after they had been charged off. Although I imagine they called me several times, I never received any written notices regarding the delinquent status of these loans or the impending charge-off.
I have researched many federal and state laws concerning consumer protection (including FCRA, Truth in Lending, Fair Billing Practices, and many more) but I have not been able to find ANY laws that require creditors to issue written notices (or even monthly statements!) as long as the initial contract clearly outlined my responsibilities. The only thing that I found that applies to my situation was the requirement that after a creditor contacts a consumer about a delinquent account they have 5 days to provide written validation of the debt and a description of options for disputing the debt, but since I made a payment toward the loan when I first contacted Key Bank's recovery department, they were not even required to do this.
Am I missing something? With so many laws written to protect consumers from any misunderstandings and from unfair billing&collections practices, it doesn't seem like this should be able to happen. Does anyone where I should look for more information about my rights in this situation? Do these requirements even exist?
Thanks,
E
