Don’t Get Your Legal Advice from Your Loan Collector

Last week, the United States Court of Appeals for the Second Circuit ruled that a debt collection agency working to collect federal student loans misled borrowers by telling them their debt was not dischargeable in bankruptcy.  The appellate court allowed a lawsuit against Collecto (really? Collecto?) to proceed in Federal District Court.  

Plantiff's attorney Brian L. Bromberg said of Collecto,'They were giving incorrect legal advice in an attempt to coerce money out of these people,' reports the New York Times.  

That's nothing new.  What's new?  Collecto "was foolish enough to put it in writing."

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