February 10, 2020 / 1:48 PM / 11 days ago

Law protects student-loan collector even if it's got the wrong borrower, split 11th Circ holds

Federal student-loan guarantee agencies cannot be sued under the Fair Debt Collection Practices Act for attempting to recoup money owed to the U.S. government, even if they’re attempting to collect it from the wrong person, a divided federal appeals court held on Friday.

A 2-1 panel of the 11th U.S. Circuit Court of Appeals affirmed the dismissal of a lawsuit that Hope Darrisaw of Georgia filed against the Pennsylvania Higher Education Assistance Agency in 2016, after PHEAA began garnishing her wages to recover nearly $20,000 that she had never borrowed.

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