topic Re: Sallie Mae is in trouble...... in General Credit Topics

Re: Sallie Mae is in trouble......

Anonymous — Sun, 01 Jun 2008 18:32:35 GMT

My parents finally got a meeting with their banker on Friday night. This is what their banker was able to find out, with just a few minutes to research:

SALLIE MAE SAYS:

Sallie Mae says the total am't owed is $23000.00

Sallie Mae says payments began in 2004, in the amt of $175/mo.

Sallie Mae says int rate is 4.5%

Sallie Mae says in these four years of pmt history, only $2000 has been applied to principle.

Sallie Mae says the other $6K went to . . . ? something ? . . .

THIS IS WHAT WE KNOW, THAT SALLIE MAE WILL HAVE TO WORK WITH:

I went to college for one and a half semesters.

I took out a total of TWO Sallie Mae loans, one for each semester, for a total of about $6K.

My parents paid off the first loan, for $1312. The other $1312 was refunded by my school directly back to SM. Parents started an auto-pay from their bank acct in 2001, in the am't of $175. The loan was PIF by 2002.

The second loan, for $2600 or so, has been paid on by ME.

I have about $1300 left owed.

I have my full account history, with every piece of correspondence ever sent to or from me w/ Sallie Mae (thanks, SM!).

Soooo.. Sallie Mae is going to have some major, gigundo explaining to do. My parents have the bank records to show they've paid $175/mo since 2001, NOT 2004 as SM says. They also have my paperwork to show that no one EVER took out $23K in Student Loans!!!!

The bank has promised to come back to my parents with as much info as possible by this coming Wednesday. Will let you all know what else they find out. I will be interested to see how quickly SM refunds all this money...

Message Edited by ivyalmighty on 06-01-2008 11:32 AM

Re: Sallie Mae is in trouble......

Anonymous — Sun, 01 Jun 2008 18:52:27 GMT

Curious- have you or your parents been able to deduct the SL interest?

Did SM send out SL interest forms each year?

I wonder if SM would have to pay this back WITH interest?

I wonder if this could be construed as fraud and press criminal charges with SM?

Re: Sallie Mae is in trouble......

Anonymous — Sun, 01 Jun 2008 18:57:15 GMT

SM has never sent any interest forms to me, or my parents.

SM has never sent my parents ANYTHING. That is why it has gone on for so long.. if my parents had ever received a single piece of correspondence stating they owed $23K, they would have crapped a brick & called immediately!!!! SM has had no contact with anyone EXCEPT ME since 2002. And, if SM had ever sent ME a bill for $23K, I would have also crapped a brick. When I DV'd SM for the false lates they had on my CRs in 05-06, they responded with a 1.5-in packet of every single piece of correspondence, EVER, including my original SL agreement signed in 2000. So, they have already helped us make our case that this account is NOT ours.

I think they absolutely better pay it back w/ interest. I have told my parents they really ought to get a lawyer NOW, instead of waiting. Someone else on here had SM deduct payments that weren't owed, and it took them like 11 months and an attorney to finally get the money back.

Re: Sallie Mae is in trouble......

Anonymous — Mon, 02 Jun 2008 17:06:34 GMT

This just proves how important it is to keep good records and check your credit report on a regular basis!

Re: Sallie Mae is in trouble......

BungalowMo — Mon, 02 Jun 2008 17:23:56 GMT

vawt wrote:
This just proves how important it is to keep good records and check your credit report on a regular basis!

Couldn't agree more. Even old (15 yo) bills, I have all my statements, check #'s, payment amounts & all that. Not to mention every tax return from '75 forward!

Ivy...seems you & your parents have your i's dotted & t's crossed!

Get in the ring gal! This is gonna be a good fight! They deserve a good smack from many of us here, but I'd have to say, this story tops em all!

Re: Sallie Mae is in trouble......

Anonymous — Mon, 02 Jun 2008 22:24:26 GMT

Ah, and FYI, the SLs being paid from their bank account aren't on ANY of our Credit Reports!!!!

Re: Sallie Mae is in trouble......

iamrayl — Tue, 03 Jun 2008 00:05:30 GMT

I hope you or someone can sue them. They have some really questionable business practices. I have a SL with them and last month i paid my bill online (which i've been doing since 2005), three days later they draft a payment for the same amount and then updated my account to say that my next payment will be due in July and not June. I called them up about it and they claim I authorized the second payment over the phone. So I got into it with them and they said in order to refund the second payment, I would have to send them a bank statement to prove that they had the payment, so I said the payment has posted to my bank account as well as the SL, what more proof do you want? Went ahead and gave the rep the tel no. for my bank and they called the bank with me on the line and the rep from the bank verified that two payments were drafted on different dates for the same amount. The Sallie Mae rep told me it will take 3 business days to process the refund. Here I am 14 days later and no refund, I also faxed them a copy of my bank statement and they responded today saying that wasn't sufficient evidence. Now what gives? Once this loan is paid of next year I will never do business with them again. It's like everyone over there has their own rules and you hear different things from different people. Sorry to be off topic but I just needed to vent. :-(

Re: Sallie Mae is in trouble......

Anonymous — Tue, 03 Jun 2008 17:23:42 GMT

Sallie Mae's business paractices leave much to be desired. I feel, that things went downhill when they moved their operations overseas. Last year, I PAID off my Sallie Mae loan early. (10 years early) I decided that I like the idea of writing myself a check for 331.09 every month, instead of them. So, I sold off some stocks, and I called Sallie-Mae for the Payoff amount. The gave me the info, and told me that he would STOP AUTO PAY EFFECTIVE IMMEDIATELY.

Well, long story short, they didin't. Despite my loan being paid/closed, Sallie-Mae continued to deduct 331.09 out of my account for several more months. Nobody at the company seemed to know where my $$ was going, or why I was still being charged. At the close of each phone call, I was assured that the problem would be addressed, and my $$ would be refunded. It never happened.

Fast forward almost one year later: I got my $$ back, (with interest) only after securing the services of an attorney. I also filed complaints with my states attorney general, FTC, and consumer affairs. I will never do business with them again.

My advice to the OP: Get an attorney. It didin't cost me much at all to retain one, and your situation sounds far worse than mine ever was. The threat of leagal action was the only thing that got this company to jump.

Re: Sallie Mae is in trouble......

Anonymous — Fri, 06 Jun 2008 22:59:47 GMT

This situation totally sucks and I know Sallie Mae is horrible to work with from personal experience but my question is how in the world did your parents go 6-7years of paying off a 2k loan at 175dollars a month and not realize it should be paid off by now. That is somewhere in the 14k range that they have paid on a 2k loan. I hope one day I have enough money not to blink twice about over paying 12k worth of a loan.

Re: Sallie Mae is in trouble......

Anonymous — Sat, 07 Jun 2008 04:56:55 GMT

GO IVY! I hope you and your parents kick some SM tail.

Re: Sallie Mae is in trouble......

Anonymous — Sat, 07 Jun 2008 05:16:47 GMT

Did the bank get back to your mom on the situation?

You are leaving us hanging here.............

Re: Sallie Mae is in trouble......

haulingthescoreup — Sat, 07 Jun 2008 11:46:07 GMT

Wow, SO happy that we've been using EdFinancial. So far, so good...

Re: Sallie Mae is in trouble......

Anonymous — Sun, 08 Jun 2008 03:04:36 GMT

To all,
I'll talk to my Mom tomorrow.. I was on a no-cell week b/c I've maxed our minutes for the month -- once again -- talking to CRAs, CAs, etc... plus w/ little bro in hospital, I was on the phone a LOT. Just got back from camping for my b-day and had a WHOLE NIGHT with no FICO work or thoughts!

And, don't ask me how they continued to pay. My Dad set up the payment plan and just forgot about it. My Dad is really not the most budget-minded guy. My Mom just assumed I must have gone to the most expensive school in the universe. She took over the budgeting in 2005 or so, but figured they would be notified, or something, when the loan was paid off, so she's just always let it go. After all, a big institution wouldn't just continue to take money from you if you don't owe it, RIIGHT??! And I don't really discuss my finances in detail w/ my parents, nor they with me, so all this time I've been paying on my REAL SLs and they've just continued to pay for this big question-mark.

We never really had a reason to bring it up until I told my Mom about my credit repair, the nasty letter I got from SM ("the fact is, you have been and continue to be delinquent on your SLs..." that is a quote from the letter, and ummm, it's not true!!!) which got her asking why I was paying on the SLs because she was! And this was only about a month or so ago...

Drama drama! I'll keep ya posted!

Re: Sallie Mae is in trouble......

Anonymous — Wed, 03 Dec 2008 05:58:40 GMT

Any updates?

Re: Sallie Mae is in trouble......

laz98 — Wed, 03 Dec 2008 07:59:44 GMT

what a nightmare! i owe them a lot of money. i really hope this doesn't happen to me. i'm definitely not letting them auto draft a **bleep** thing out of my account!