On March 25th, the Trump administration announced that it would be ending student loan wage garnishments for up to 60 days. However, this process is not as simple as it seems on the surface.
Private collection agencies will not make money if they are no longer collecting debts during this time. Individual employers must take the appropriate steps to stop the garnishment of their employee’s wages and protect their borrowers.
Collection agencies in the past have been known to prey on consumers during difficult times, even during non-emergency times as well. Borrowers have complained of not being able to work with the debt collectors to end the wage garnishment.
Under this new law, only borrowers with federally owed student loans are protected. That means borrowers with private student loans or federal student loans made before 2010 by private lenders and banks could potentially face garnishment during this time. This can be stopped by the private lenders and banks stepping in to stop this garnishment before it occurs.
Our firm’s consumer protection attorneys will continue to investigate and monitor this situation and be on the lookout for improper wage garnishment and other issues that could harm student loan borrowers during the COVID-19 pandemic.
Maginnis Law’s consumer law attorneys are committed to helping consumers like you who have been wronged by big corporations. You can reach our firm’s consumer law attorneys by phone at 919.526.0450, by email at email@example.com, or through our contact page.