Professor Richard M. Alderman, Associate Dean at the University of
Houston Law Center, who is known to many as "The People's Lawyer", answers your most common questions. If you have a question pertaining to the law in Texas, please e-mail Richard at peopleslawyer@www.law.uh.edu. This page answers your questions on Loans
|
Banking Bankruptcy Contracts Credit Cards Debt Collection |
Divorce Employee Rights Fraud Liens Medical Leave |
Miscellaneous Property Rights Taxes Wage Garnishment Wills/Probate etc. |
A. Probably not. Although most debts cannot be legally enforced after six years, government backed student loans are different. Under federal law, there is no time limit on when such loans must be enforced.
Q. I had been making regular payments on a loan when the loan company was sold to another company. The new company has contacted me and wants to raise the amount of my payments. Can they do this?
A. When you sign a contract, including a loan agreement, the terms of that contract are binding on any other company that takes over. In other words, if the agreement did not give the original lender the right to arbitrarily raise the amount, the new company does not have that right.
I suggest you read your loan agreement and then contact the new company and let them know you expect them to abide by its terms.