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Can I sue this collection agency

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Back in January I found out that I could discharge my student loans, because the college that I attended closed while I was still enrolled. Under closed school discharge. After 10 years a collection agency contacted me, after my income taxes had been witheld. I started making payments for about 6 months. I stopped because I could no longer afford them. The collection agency began wage garnishments. I applied for the loan discharge in January. In February, the collection agency told me my application had been denied by my loan guarantor, so they continued to garnish my check. I contacted my loan guarantor and they reviewed my application and approved it, I am now getting a refund, having the loan deleted from my credit report and the garnishments will stop. My loan guarantor withdrew my account from the collection agency. They were always very rude to me and would not listen to what I had to say, they ignored my letters. I read on the internet in some cases the collection agency will not push a discharge application through, in hopes that you will not proceed any further and they will get their money. Can I sue them or should I leave well enough alone? I live in North Carolina.


Senior Member
Collection agencies exist for one purpose, to collect money from those that owe. They have no obligation to assist you in your application for discharge. That would be taking money away from themselves. Consider yourself lucky you are getting your money back and move on.

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