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Case settled against Oxford Management - Student Loan Debt

On May 21, 2009, a lawsuit was filed against Oxford Collection Agency, Inc. in the United States District Court for the Western District of Pennsylvania, Case No.:  09-cv-00629.


THE FOLLOWING WAS ALLEGED IN THE COMPLAINT:

Information about the Defendant:

Oxford is a debt collector as defined by the Fair Debt Collection Practices Act (FDCPA).

 

Facts of the Case:

In the complaint, Defendants were charged with abusive collection acts. 

These acts included:

- false threat of a lawsuit;

- false threat of wage garnishment;

- false threat of repossessing home and all personal belongings;

- conduct on the telephone used to harass and threaten plaintiff,

- unlawfully withdrawing money from plaintiff’s bank account causing plaintiff to incur bank charges.

 

Taken directly from the complaint, leaving out Plaintiffs’ names for privacy……..

9.       Between June and mid July 2008, Plaintiff contacted Oxford attempting to set up a payment plan for her husband’s student loan debt.  The original creditor is Sallie Mae.

10.     On more than one occasion while Plaintiff was attempting to work out a payment plan, Oxford’s collector would place her on hold falsely claiming they were going to speak with Sallie Mae.  The collector would then get back on the line and tell Turner Sallie Mae wouldn’t agree to her proposal.

11.      Plaintiff couldn’t afford to pay back the loan on Oxford’s terms.  She suggested she might be able to borrow the money.

12.     Oxford’s collector advised the plaintiff that if she didn’t taken out a loan to pay back the debt, they would take it to the next level.

13.     She asked the collector to explain what was mean by “taking it to the next level.”

14.     The collector said Sallie Mae will probably take you to Court.  They will sue you.  They will take your house and your car.

15.     Plaintiff told the collector she didn’t have a house or a car.  The collector said they can take your wages and all of your stuff. 

16.     The collector told the Plaintiff if she didn’t want to be responsible for her husband’s debts, then she shouldn’t have married him.

17.     In July 2008, Oxford’s collector represented to Plaintiff they could pay $600 per month for 3 months.  They would then be pt on a good faith “hardship” payment plan of $200 per month.

18.     Plaintiff agreed to pay $600 for July, August and September 2008.  She took out a loan.

19.     Plaintiff made the third and final payment on September 25, 2008. 

20.     Plaintiff then called Oxford thinking they were going to get into the financial hardship plan.  After being switched from collector to collector, she was told there was no record of a financial hardship plan.  The minimum payment Oxford could accept would be $600 per month; $400 more than the promised hardship payment plan.  When Plaintiff advised the collector she took out a loan believing her husband would get into a financial hardship plan, the collector said, “we didn’t tell you to take out a loan.”  Plaintiff took out the loan and agreed to make the payments thinking she would get into the financial hardship plan.  Plaintiff would not have borrowed the money and agreed to the payments if she knew Oxford’s claims about the financial hardship plans were false.

21.     In October 2008, Oxford without authorization attempted to debit Plaintiff’s bank account in the amount of $600.

22.     Plaintiff didn’t have sufficient funds in her account to cover the $600.  The bank charged her a non-sufficient funds fee.

23.     Oxford then tried to debit the account a second time for $600.

24.     Plaintiff put a stop payment on her account for the amount of $600.

25.     Unable to debit $600, Oxford took $300 from the account.

26.     Plaintiff incurred bank charges due to the unauthorized withdrawals.

Violations:

Defendants allegedly violated the FDCPA by using conduct during the telephone calls with the intent to harass and abuse the plaintiff, falsely threatening wage garnishment, falsely threatening to take a home, car and/or personal belongings.  Defendant also falsely threatened legal action.

Oxford also illegally debited $600 from Plaintiff’s account which caused Plaintiff to incur bank charges.

Outcome:

Settled out of Court in January 2010.

Settlement amount CONFIDENTIAL

Awarded: Confidential


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