Lied In Voicemail to Get Me to Return Call - Can They Legally Do This? + Misc. Added On Fees???

[SingleWithThree]

So last week I received a voicemail message stating the following" I, I am  ----- calling from ----- because a family member or friend has used you as a reference and in order for me to process their application I need a few minutes of your time to verify their information".  Now like an idiot, I called.  Turns out it is the collection agency that the Dept. of Ed forwarded my deliquent student loan account to.  I tried to talk to the guy, but he became very abrasive with me because I refused to set up payment arrangements until I found out why an additional $350 was added to the account out of nowhere (not interest).  He hung up on me, but not before threatening garnishment. 

I got a notice in the mail yesterday from there where this additional $350 is listed as "penalties". 

Here are my questions...

1. Can they mislead you like that on a voicemail message?  It was my understanding that this is against the law and that by law they even have to state the reason for their call (the real reason) or none at all.  I just got the exact same message left by a different person at the same company yesterday.  I saved both messages.  What can I do?  Who do I report this behavior to?

2. Are these "penalty" charges really just their way of trying to scam more money out of me?

Any help is greatly appreciated.  This loan has been a total nightmare for start.  It was a loan that was never supposed to be processed by the school, but they did it anyway and I only recently learned that it existed. I requested a discharge, but was denied.  I have every intention of paying it, but I don't want to be harrassed over this.

[Anonymous]

1) Unfortunately, nope. They can tell you that they're your long lost relative three-times removed, if that's what it takes to get you to call or answer your phone.

However, they can NOT purport themselves to be either an officer of the law or of the court, unless, they are, in fact operating in that capacity. Meaning, if they say they're a lawyer, they better durn well be one.

They also can't disclose ANY information about your debt to ANYONE other than YOU or an "agent" you specify (like a spouse or parent that you've authorized to speak on your behalf).

2) Are you in default? If you've defaulted on your loan(s), they can tack on 25-30% in "collection fees" to the balance. Since the DoE is having to pay a collection agency to collect the balance/amount, they pay this cost onto the borrower.

I don't know what kind of "fees" they'd add on to a non-defaulted (merely delinquent) student loan, though.

[Anonymous]

§ 807. False or misleading representations

A debt collector may not use any false, deceptive, or mis- 

leading representation or means in connection with the col- 

lection of any debt. Without limiting the general application 

of the foregoing, the following conduct is a violation of this 

section:

(10) The use of any false representation or deceptive means 

to collect or attempt to collect any debt or to obtain 

information concerning a consumer.

(11) The failure to disclose in the initial written communi- 

cation with the consumer and, in addition, if the initial 

communication with the consumer is oral, in that initial 

oral communication, that the debt collector is attempt- 

ing to collect a debt and that any information obtained 

will be used for that purpose, and the failure to disclose 

in subsequent communications that the communication 

is from a debt collector, except that this paragraph shall 

not apply to a formal pleading made in connection with 

a legal action.

[MattH]

---

@Anonymous wrote:

§ 807. False or misleading representations

A debt collector may not use any false, deceptive, or mis-

leading representation or means in connection with the col-

lection of any debt. Without limiting the general application

of the foregoing, the following conduct is a violation of this

section:

(10) The use of any false representation or deceptive means

to collect or attempt to collect any debt or to obtain

information concerning a consumer.

(11) The failure to disclose in the initial written communi-

cation with the consumer and, in addition, if the initial

communication with the consumer is oral, in that initial

oral communication, that the debt collector is attempt-

ing to collect a debt and that any information obtained

will be used for that purpose, and the failure to disclose

in subsequent communications that the communication

is from a debt collector, except that this paragraph shall

not apply to a formal pleading made in connection with

a legal action.

---

Actually, this is a legal grey contradiction that I believe has yet to be resolved in the courts. One law says every communication must say in so many words This Is An Attempt To Collect A Debt. Another law limits revealing to third parties that a bad debt exists. Collectors are not my favorite people, I've never been the debtor but some years ago I had a little fun making them go away when they got me confused with a deadbeat in the next county whose name was similar to mine, but leaving a message on somebody's answering machine does present a genuine dilemma to the honest collector! They could get in trouble for NOT saying "I'm a collector" and they could get in trouble for saying "I'm a collector" (because another member of the household could easily happen to be the one who gets home and plays back the message).

Message Edited by MattH on 10-14-2008 07:11 AM