Unwanted robocalls could be more than simply an annoyance for student loan borrowers. But, in reality, many of them are outright frauds that prey on borrowers already in financial trouble.
If you own a phone, you’ve probably received several robocalls that are previously recorded or auto-dialed phone calls. Because both genuine entities and malicious actors imitate them, handling such calls can be difficult.
Robocalls have a role and can be beneficial when used correctly. For example, businesses, schools, and organizations sometimes use auto dialers or recorded messages to reach out to individuals more effectively with vital messages.
For instance, if your trip was canceled or your institution was opening late due to bad weather, you would like to know and would welcome a robocall. Likewise, if you have student loans, a reminder may be helpful if you forget to make the payment and need to keep your account up to date to avoid the dire repercussions of arrears or default.
Simultaneously, robocalls are also used to bother or harass debtors by making repeated phone calls. Scammers are increasingly making these calls since the internet allows them to quickly and inexpensively discover and contact many people.
Robocalls concerning alleged debt relief, including schemes to lower or erase student debt, are among the many fraud complaints filed with the Federal Trade Commission each year. For example, the FTC recorded 2.8 million claims about robocalls in the financial year 2020, which included months when much of the United States were closed down or slowed significantly due to the coronavirus pandemic.
Here’s what student loan borrowers should know about robocalls and how to avoid them.
Recognize Your Rights
The Telephone Consumer Protection Act, passed by the United States Congress in 1991, is intended to safeguard consumers’ privacy while also reducing the frequency of telemarketing and robocalls. The federal government recently modified the TCPA to further limit these types of intrusive calls.
The TCPA authorizes auto-dialed calls and messages to cellphones if the customer agrees to receive them. It should be a red signal if you receive a robocall from a company you’ve never heard of.
You do have the right to add your phone numbers to the National Do Not Call Registry, which was formed by the Federal Trade Commission, for free to avoid receiving telemarketing robocalls and texts. To do so, go to www.donotcall.gov or dial 888-382-1222 from the phone number or phone numbers you want to add.
Once they sign their student loan agreement, most federal student loan borrowers agree to receive calls from their student loan servicer, which handles invoicing and other services on account of the US Department of Education. You can later choose to stop getting these calls and texts, but be aware that doing so may keep you from getting critical account-related notifications from your servicer.
When a loan is late, the TCPA allows debt collectors to call. Consumers have the choice to refuse these collection calls to their cellphones but be warned that doing so may result in you missing important student loan account messages. During the delay, calls are permitted to aid borrowers in understanding whether substitute payment arrangements are available before default.
The Fair Debt Collection Techniques Act, or FDCPA, prohibits debt collectors from harassing, oppressing, or abusing debtors, as well as using fraudulent and misleading practices. Calls made before 8 a.m. and after 9 p.m. in your time zone, whether or not using an autodialer, are not permitted unless you have given and not revoked approval. You have the right to sue a debt collector if they break the law.
Understand How to File a Complaint
You can file a complaint with the Consumer Financial Protection Bureau or the Federal Communications Commission’s Consumer Complaint Center or contact your state’s attorney general if you think a student loan debt collector is pestering you with calls and texts.
The Federal Communications Commission is ratcheting up its efforts to combat unlawful robocalls. Jessica Rosenworcel, the commission’s acting chairwoman, declared dozens of new initiatives in March, such as releasing the largest robocall fine in FCC history, forming a Robocall Response Team, reviving anti-robocall partnerships with the FTC, US Department of Justice, and National Association of State Attorneys General, and mailing cease-and-desist messages to six voice providers alleged of violating the terms of FCC guidelines, which include illegal robocalls.
If you suspect fraud, you can also submit a complaint with the Federal Trade Commission’s Bureau of Consumer Protection.
The Federal Trade Commission (FTC) announced this month that it would return nearly $150,000 to student loan borrowers who were duped into paying illegal advance fees based on fraudulent claims to remove or lessen their student loan debt.
In reality, the FTC’s investigations and follow-up actions resulted in more than $483 million in refunds to various sorts of consumers across the United States in 2020. However, in April, the United States Supreme Court concluded that the FTC cannot seek financial compensation in federal court for aggrieved consumers and is banned from doing so.
The FTC has requested Congress to approve legislation to restore that capacity, claiming that the court decision will effectively limit its ability to settle complaints on behalf of injured consumers.
You shouldn’t have to, and must not, endure unsolicited and annoying robocalls as a student loan borrower. However, knowing your rights and how fraudsters have used these types of calls to take full advantage of debtors can assist you and many others in protecting themselves.