In: Finance
Fahad had a student loan that was in arrears. Collection of the loan had been transferred from the original lender to Kneecap Collections Inc., a collection agency. When Kneecap demanded payment, Fahad questioned the amount that was being claimed, which was much larger than the amount of the original loan. Kneecap did not give any explanation and insisted on immediate payment. Fahad said that he would not pay any amount until Kneecap provided an explanation for the amount owing.
Shortly after this, Kneecap began to harass Fahad. They made violent threats to Fahad and repeatedly called his employer, making false statements about Fahad. They told his employer that Fahad had defrauded the employer and that he was secretly working part-time for a competitor. As a result, even though Fahad said that Kneecap was not being truthful, he was fired by his employer.
What claims might Fahad have against Kneecap? Are there any defences available to Kneecap? You are the judge. Make a decision and explain how you reached your decision.
Case:
Tran v. Financial Debt Recovery Ltd., 2000
Fahad who is a student who has completed the education is in the process of repaying the student loan. However, the bank to whom the payment has to be made has transferred the debt collection to collection agency.
It's Fahad's right whether the agency is reliable and does it have a proper authority to collect the amount from him.
One should also consider if Fahad had made proper inquires with the bank regarding the amount to be paid and proper classification and justification
The enquiries made by Fahad need to be understood clearly.
Also the responses from the bank needs to be considered
If Fahad had asked proper reasoning from collection agency, the records of the same must be considered.
If there are harassment calls from the agency , proper detailing or evidences needs to be considered.
Considering the details of above case and taking light into consideration case of Tran V. Financial Debt recovery ltd.
Fahad is entitled to receive compensation for damages. Also, if there is any trial or loosing of job, he is entitled for the compensation of the same.
Bank/ Collection agency can recover the appropriate amount after disclosing the same to Fahad.