Snapshot of why collectors are suspicious of sob stories

So I got someone on the phone a couple of weeks ago who owed a sizeable student loan balance (over 50K, I don't remember exact amount) who had just been laid off from her job as a paralegal the month before. Her husband was retired, she gave me her unemployment salary and cited specific case law as to why she didn't have to give her husband's income levels. Refused to give references - generally being difficult.

I gave the information to my manager, who shook his head. "I've been monitoring the call. Give her the hardship program, tell her it's contingent on the references. No way she can do these payments."

So I pitch her the hardship program, and she thinks that is a great idea. Contact references came easily, she found a fax machine to send the application, and agreed she would call the following Monday to go over the application.

So Monday comes, and she is furious and refuses to sign the application because she has to reveal her husband's income. I try to explain to her that the payments are based from income, and since she and her husband file a joint tax return, they have to base it on both.

"But I can't! Then my payments will be too high! He'll never agree to it."

"But you said he's retired - how much does he get in retirement benefits?"

"Well...he gets 200,000 a year from his company...and another 200,000 a year from investment income...and there's the money from the Swiss bank accounts he's going to have to move due to disclosure laws..."

I tell her I'll see what I can do, and catch my manager coming in from break. Somehow I explain the situation to him with a completely straight face. He stares back at me, blinking a few times before speaking.

"Balance...in full...is due."

I remind him we already sold her the hardship program, so she certainly won't pay us at this point. It's hardship or nothing - any workaround?

Eventually, we had her fill out the paperwork without her husband's signature, and then she can fight and argue with the hardship people and she becomes their problem. So it all worked out.

I was telling this story to my wife, who pointed out I didn't know the whole situation - she may be a trophy wife who doesn't have access to the funds, or there may be other mitigating circumstances. I pointed out she actively lived with her husband, and that being over 40, she probably wasn't a trophy wife. Nope, we got played by someone who knows how to play the system.

(Note - the way that she played the system when employed was to file a cease and desist letter with the company last time we had her account in our office. Our senior collector pointed out the code for cease and desist in the second screen near the end of the first phone call - who knew that's what that meant?)

I was angry for a bit, but then realized I should simply be grateful I got anything from her. In that sense, I won against a game-player. In the end, I can choose to believe or not believe someone's story, and not believing does me no benefit over believing.

So yes, I believed the story when the second person in two days told me he was living in a tent in Washington. And when he gave me lot numbers to the same campground for all of his other references, I dutifully wrote them down. At least he had paper for my phone number.