Imagine you’re sitting at home minding your own business, perhaps trying to find a decent job or merely watching television when a knock comes on your door. You go to the door and see several U.S. Marshals standing there with a warrant for your arrest. There’s gotta be a mistake, right? Nope. No mistake at all. You have unpaid student loans and the lender has turned you in for collection.
That’s exactly what happened to Houston resident Paul Aker. Aker took out a $1,500 student loan in 1987. He was then hauled before a federal magistrate and compelled to sign a document saying he would repay the loan. As Aker recalls:
“It was mind-boggling, I couldn’t believe it. I was standing before the court with no rights read to me, no legal representation, and I’d been told that I owe $1,500, just couldn’t believe it.”
Is this a regular happening? The U.S. Marshals office in Houston confirmed that they have a list of up to 1,500 names they will be paying a visit to much the same as they did to Mr. Aker.
Texas Congressman Gene Green said he thinks the use of federal law enforcement to collect debts is ridiculous:
“Our federal resources, our US Marshals and federal court system are being used by the private sector. A few years ago, Congress allowed the private sector to contract for student loan collections and so you have these private companies who are doing this.”
Nice little racket the banks and other lenders have going there, isn’t it? They loan the money and then get to use the full power of federal authorities to collect what they’re owed. It’s kind of like being a loan shark and then calling the police when you don’t get paid back: Yes, I loaned some money at a predatory rate to some kid and I need you to go rough him up. Be sure and scare the holy crap outta him! Thanks for your help, officer.
Here’s Paul Aker discussing his ordeal:
Featured Image Via DemocracyNow
