Collection of a Student Loan With an Incomplete Promissory Note
My question involves collection proceedings in the State of: Texas
To get to the gist of it (as it has been a very long process) I requested debt validation from a Collection Agency contracted by ED for defaulted student loans. I was sent FFELP "Applications and Promissory
Note"(s)
Under Lender Section, there is no information IE: Loan amount: .00 , Interest rate: Blank, Disbursement Dates: Blank ; Signature of Lending Officer ; Blank.
I disputed the documents because there were no loan amounts. The Collection Agency returned the Account to ED. They had already Garnished wages so ED refunded the amount garnished. Hooray?
Anyway... because ED won't in writing address the issue I'm worried it will come back.
My Question: If the promissory note is incomplete what is the correct legal process? Is it an incomplete Instrument? Is it a Negotiable Instrument? Is there any defense?
I tried to get an account history from my school but they purge records after 7 years. I requested additional information through FOIA / Privacy ACT specifically related to additional documents. Ed searched "warehouses and data systems" and could not find any other info then the "notes". I feel like I'm in limbo waiting for another shoe to drop. (FYI - I paid all my Direct Federal loans- 30K) I'm not a deadbeat
Re: Collection of a Student Loan With an Incomplete Promissory Note
If the promissory note is incomplete, but you in fact borrowed the money, you can expect that the issue will come back if better documentation is found relating to the loan. While we can't rule out a clerical error in a large bureaucracy that would cause them to again try to collect the loan based upon inadequate documentation, it's otherwise unlikely that they will again try to collect the loan.