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Foreign Student Debt?
A friend of a friend is being hounded by a Swedish collection agency. She is a Swedish citizen. She borrowed money in Sweden in the 1990s to study abroad in the United States. She didn't repay to money, and has been in the United States for more than 20 years. She lives in Tennessee, where the statute of limitations on contracted debt is 6 years. However, the collection agency is threatening to sue her in federal court. My hunch is that they are just threatening her to get her to pay them. Does anyone know of any law that would allow them to successfully sue her in federal court? Or somehow exempt the debt from the statute of limitations?
I realize that a lawyer would be the best person to answer this question. However, if they have no way to collect, she can just stop answering her phone. She only needs a lawyer if there might be a way for them to obtain and enforce a judgment.
5 Answers
- ?Lv 71 month agoFavorite Answer
Her loans are being managed by CSN. Assuming the borrower does not respond to payment reminders and demand letters from them and the borrower lives in a foreign country. The Enforcement Authority turns over the collection process to a collection agency [usually where the student is.] Only a federal court has jurisdiction over her case.
Although a complicated process, it is possible for them to obtain a judgment; enforcement would depend on her assets. Since she is in the United States, she may be entitled to use the the protection of the United States collection laws. These people usually rely on default judgment because no challenges are made.
You are completely wrong when you say, she does not need to hire a lawyer. Most important strategies occur prior to a lawsuit being filed. Besides, she does not have to hire a lawyer, has to consult one. Not just any lawyer, but someone familiar with the collection laws of both countries. There are many challenges that can be made. Depending on whether the debt has been sold to the collection agency or they are working on a contingency. Demand can be made by her to submit all documents related to loans and needs to be disputed. Negotiations can occur, usually the older the debt the better; most of the time a lawyer can negotiate for pennies on the dollar when the debt is old and collection is doubtful.
- babyboomer1001Lv 71 month ago
What makes you so sure that they did not preserve the statute? She owes the debt. She ought to pay it. It would be sued in federal court because of the jurisdiction.
- Lone CatLv 71 month ago
The statue of limitation doesn't start until after the end date of the contract. So if you take out a 30 year mortgage, the statue of limitation will kick in at 36 years.
