Question:
Dear Steve,
My daughter enrolled in a loan modification program about 5 months ago. She is still being garnished as well as paying the required monthly fee. Every month they request copies for documents already received. Is this a ploy to continue garnishment, and what can she do legally?
Wanda
Answer:
Dear Wanda,
Thanks for being a good mom and looking out for your daughter.
Obviously, I don’t know which program or exactly what kind of debt this might be for based on your question.
What I can give you is some general advice though.
If your daughter enrolled in some type of debt intervention program she most likely signed and agreed to terms of service with the provider. That agreement is where you would need to look to exactly understand what services she agreed to purchase.
It is not unusual for the written agreement to provide a much different description of the service than the commissioned salesperson did on the telephone.
I like to give companies the benefit of the doubt on the first pass of dealing with a customer service issue. So after reading and understanding the client agreement your daughter signed, have your daughter contact the company to explain her service frustrations.
If the company does not want to or can’t correct its poor service issues then you can escalate your complaint. Here is my process for doing that. See How to Get Your Money Back From a Debt Relief Company if You Feel Like You’ve Been Scammed.
Underlying all of this is the fact this situation involves creditor(s) your daughter owes. Those relationships have their own legal agreements your daughter entered into. And if your daughter is already being garnished then she was most likely already sued and the creditor(s) won a judgment against her.
For legal issues, you should always consult a licensed attorney in your state. One place to look for such an attorney is here.
From your question, I can tell you there is a lack of clarity about what is going on, a misunderstanding of the services purchased, a lack of good customer service being provided, or a combination of those issues.
Keep digging and please come back and post an update in the comments section below and let me know what happens next.
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Question answered.
Thanks for replying . I forgot to mention that it is a student loan modification. She is eligible for because she works for a non profit organization.
Okay. So there is no loan program for her to be enrolled in. Here is the information she needs to hopefully be eligible for loan forgiveness after 120 conforming payments. Go to https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
She just needs to make sure her loans meet the ones that can be forgiven and that she is submitting an annual Employment Certification Form to get an idea if her employment qualifies.
Hopefully, the company she hired has advised her the Public Service Loan Forgiveness (PSLF) program is a total mess at the moment and it is up in the air if many people will ever get the forgiveness. I’m just about to post an article on an update to the program.