If you have been sued on a student loan debt make sure you review your student loan contract before assuming the bank is right. A client recently came to me who was sued on a student loan debt she co-signed for an ex-husband. She believed she was responsible for the debt and really just wanted me to settle it for her and make it go away. However, when we took a look at the student loan contract some problems with the bank’s claim were apparent:
- A student loan debt is a consumer debt requiring notice to the consumer when it is assigned to a new creditor. This notice never happened and without it the lender did not have standing to sue my client;
- The terms of the “Application/Agreement” the client signed believing she was responsible for the debt were not identical to the terms of the ultimate loan; raising the argument that no contract was formed as their could have been no meeting of the minds;
- An assignment of a student loan must have be in writing and, in this case, it was not attached to the Complaint. Without the assignment the bank could not sustain its claim;
- The Complaint did not specify when the last payment on the loan was made invoking a potential statute of limitations defense.
While the case was dismissed voluntarily by the bank prior to our Motion to Dismiss being heard and before trial, we were able to create enough concern that the bank did not think it was worth the fight. Instead of negotiating with the bank to pay the loan my client paid nothing; simply because she came in and had an attorney review the contract. If you are faced with a lawsuit to collect on a student loan or any other debt do not assume the bank or lender has what it takes to win the case. Assess your chances of winning early on make a plan. Jacksonville’s debt relief law firm, Matthew C. Bothwell, P.A. is here to assist you and answer any questions you may have. We are no further away than your telephone or computer. Please contact us today.