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Financial challenges may lead to even more debt collection calls

We recently posted a blog about how the future might hold promise for a relaxation of the rules that essentially prohibit the discharge of student loan debt in a consumer bankruptcy. Consumers who doubt the determination of the federal government to recover the $94 billion borrowers owe to it in the form of delinquent student loans payments need only wait for their cellphones to start ringing.

It is no secret that the government is swamped by complaints about automated calling systems used by telemarketers and debt collection agencies. It has been looking into the development of technology to allow consumers to block such calls, but now the same government is about to unleash its own collection agencies by permitting them to contact individuals owing delinquent student loan debt by calling them on their cellphones.

A person experiencing financial challenges, such a loss of income caused by unemployment, may have a cellphone plan with only a limited number of free call minutes each month. Robocalls from debt collectors calling about student loan debts could become expensive as consumers use up their free minutes.

Using automated dialing directed at cellphone numbers will do little to improve payment by consumers and eliminate debt owed to the government. At best, estimates put the reduction in debt resulting from the calls to consumer cellphones at only $12 million annually.

Consumers looking for ways to stop creditor harassment, prevent foreclosure and eliminate debt might do well to consult with a Toms River, New Jersey, bankruptcy law attorney. The attorney might offer suggestions such as a Chapter 13 bankruptcy as one way of reducing credit card debt and other, nonstudent loan obligations in order to create a manageable repayment plan.

Source: Digital Trends, “The Government May Start Making Robocalls To Your Cell Phone soon to Collect Debt,” Lulu Chang, Nov. 1, 2015

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At the law offices of William H. Oliver, Jr. & Associates in Toms River and Lakewood, New Jersey, we represent clients in Toms River, Neptune, Trenton, Middletown, Red Bank, Wall, Lakewood, Lakehurst, Manchester, Asbury Park, Old Bridge, Jamesburg, Barnegat, Forked River, Manahawkin, Ocean Township, Brick, Manasquan, Howell, Freehold, Hazlet, Bradley Beach, Brown Mills, Long Branch, Keansburg, Marlboro, Bayville, Beachwood, Whiting, Sayreville, South River, East Brunswick, Monmouth County, Ocean County, Middlesex County, Burlington County and Mercer County.