Sallie Mae Class Action Lawsuit

Latest post 07-14-2014 8:08 PM by T.Hooper. 187 replies.
  • 09-26-2012 2:10 PM In reply to

    • CCX008
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    Re: Sallie Mae Class Action Lawsuit

  • 10-10-2012 11:15 AM In reply to

    • CCX008
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    Re: Sallie Mae Class Action Lawsuit

    Found this today on Huffington, very interesting :

    An Open Letter to the CEO of Sallie Mae

    http://www.huffingtonp...

    Sure, right now you're feeling great. Black AmEx, silent auctions, yacht shoes (which you actually only wear on yachts). But Mr. Lord, a few more years of this and you're gonna end up wearing a mink turban and a diamond caftan to Kim Kardashian's third wedding! You're a stuffy businessman, not Liberace or Andre Leon Talley. Be careful dude. Mr. Lord, I'm not asking you to write me and the other hundreds of thousands or maybe even millions of people who owe Sallie Mae money a big fat check. We understand we have to pay back. It just would have been nice having someone to advise us when we took out our loans. I tried Mr. Lord, and... crickets.

    I'm asking you to peer far, far down from your metaphorically tall yacht shoes and think of "us" in the "50 feet of crap" and maybe, just maybe rethink your interest rates. Do you really need $5 million a year, Mr. Lord? Does anyone? We're not asking for handouts like that super annoying jerk Oliver Twist who kept whining, "Please sir, I want some more." What nerve. But really, for your own sake, it'll probably do you some good to give a little. Unless of course you like mink turbans.

    Follow Dina Gachman on Twitter: www.twitter.com/@TheEl... 

  • 10-16-2012 9:24 AM In reply to

    • elbabae
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    THE CLAIM FORM - Re: Sallie Mae Class Action Lawsuit

    Does anyone have a copy of the claim form for this suit. I was one of many people who were never made aware of this class action suit however without the claim form my claim can not even be submitted.

    I find it shocking that Sallie Mae was not required to notify all of it's customers on this class action suit. The law firm was actually held responsible to do this and it was obviously very difficult for them to know who to contact and then how to find them.

  • 10-19-2012 3:44 PM In reply to

    Re: THE CLAIM FORM - Re: Sallie Mae Class Action Lawsuit

    You can find the form here:

    www.arthurTCPAsettlement.com

  • 10-22-2012 12:26 PM In reply to

    • lealar
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    Re: Sallie Mae Class Action Lawsuit

    Same thing happened to me earlier this year.  I paid over $700/month for over a year while I was in school.  When I graduated I had no job and eventually the money ran out so I could not affort to pay Sallie Mae.  They informed me there was no other payment options for me and my only choice was to pay almost $800/month.  They wanted to charge me a $50 fee per loan for forebearance which would have been about $200 and I could not afford that.  I went for three months without paying my loans and they called 8-10 times per day and harassed me regarding payment.  I initially borrowed approximately $55,000 and now I owe over $90,000!  Sallie Mae has to be stopped.  I had a perfect credit score of 780 before dealing with Sallie Mae and now I can't get a loan for $4,000 to buy wedding rings because my credit score is so low due to problems with Sallie Mae.  I'm very interested in starting a class action law suit agains Sallie Mae. 

    Keep me posted with any class action suits agains Sallie Mae at: hatesm01@gmail.com

  • 10-22-2012 4:56 PM In reply to

    Re: Sallie Mae Class Action Lawsuit

    lealar:
    When I graduated I had no job and eventually the money ran out so I could not affort to pay Sallie Mae. 

    You couldn't make the payments that you agreed to pay when you took out the loan. That's not the lender's fault. While I can sympathize with the financial problems that arise when you can't get a job, nevertheless, the lender deserves to get paid for the money you borrowed to get the education you wanted. When you don't pay, the creditor reports that to the credit bureaus, and your credit suffers. So long as what the lender reported to the credit bureau is accurate, there is no claim to pursue the lender for the credit woes that result.

    lealar:
    I initially borrowed approximately $55,000 and now I owe over $90,000! 

    When you don't pay, interest continues to accumulate, and late penalties may get added to account, too. Over time, with no payments being made that means the account balance will continue to grow, and depending on the interest rate of your loan, it can grow pretty quickly. So long as the interest rates and other charges don't exceed those permitted by applicable law and that the loan contract provides for them, there is nothing wrong about adding these charges to your account. You will want to verify that your account balance has been computed correctly and if it hasn't, work to get that corrected. But if the charges are allowed, you won't get anywhere suing just because the balance is growing while you are not paying.

    lealar:
    I had a perfect credit score of 780 before dealing with Sallie Mae and now I can't get a loan for $4,000 to buy wedding rings because my credit score is so low due to problems with Sallie Mae.

    You want to borrow $4,000 to buy wedding rings when you don't have a job and can't pay the loans you already owe? Do you not see the problem with that? Even if a creditor never saw your low credit score, if it had the facts that you don't have the income and can't pay your existing loans, let alone an additional one, if it was smart it woudn't make the loan. There is just too much risk that the lender wouldn't get paid.

    I understand that a wedding (particularly a first wedding) is a big event in one's life, but you need to budget for that event based on what you can realistically afford to pay. When you don't have a job and can't afford to borrow money, you need to set your sights on a less costly wedding. One of the biggest reasons that marriages break up are financial problems, and starting out the marriage by taking on even more debt you cannot pay will add stress to the relationship and make it that much more likely that the relationship will falter. I don't wish to sound harsh or critical, but simply point out what strikes me as a potentially bad financial choice based on the limited information you put in your post.

    lealar:
    I went for three months without paying my loans and they called 8-10 times per day and harassed me regarding payment.

    Well, sure, the lender wants to get paid. Creditors know that debtors tend to pay more when they are faced with consequences they don't like. Let's face it, many debtors would not pay anything even if they could if there wasn't any nasty consequence for not paying. Why would they pay if no one is bothering them for payment? There are, of course, things a creditor may not legally do to collect a debt. They can't send out a thug to break your kneecaps, to use the classic example. Debt collection agencies cannot, under the Fair Debt Collection Practices Act (FDCPA) call repeatedly during the during the day. But the FDCPA does not apply to the original creditor collecting its own debt. So, while the multiple calls per day no doubt are maddening and feel like harassment, under federal law the original creditor is not prohibited from doing that. A few states have laws the prevent the original creditor from doing that kind of thing, but most don't.

    lealar:
    Keep me posted with any class action suits agains Sallie Mae...

    For everyone involved in this thread, I suggest you keep in mind a couple of things. First, while the lender is obviously doing things to collect that many of you do not like, many of those actions may well be legal for the lender to do, distasteful though it may be to the borrower. If the lender may do it, filing a lawsuit, class action or otherwise, won't help you. So, you need to look at what's been happening to you and sort out first what things are permitted and what are not. For the former, you won't have any legal recourse. For the latter, you might. Consulting a lawyer can help you sort out whether, in fact, the actions taken in your situation were permitted or not.

    Second, understand that class action lawsuits are designed to litigate claims in which all the plaintiffs are similarly situated with respect to the defendant. For example, if the lender was charging a certain of $X to borrowers that was not permitted, then that is a situation that might be resolved via a class action lawsuit on behalf of all the borrowers affected. It works because the evidence presented by the named plaintiff is basically the same evidence each class member would present if he/she was suing on his/her own. So it makes sense to litigate that in a class action instead of replicating basically the same case hundreds or thousands of times.

    For situations that are unique to a particular borrower or that would require each borrower to present his/her own separate evidence to prove the case or establish damages, a class action lawsuit is not an appropriate way to litigate. In that circumstance you aren't saving any court time as each individual would still have to make his own case. For those situations, each person would need to litigate his/her cas separately. Those folks won't be well served waiting around for a class action that won't ever come.

    Reading through this long thread, there are a variety of different complaints that people have about this lender. There isn't one big class action lawsuit that will address all those at once. The extent that there is a very specific wrong that ia experienced by a number of borrowers, that might be a good class action case. The point here is that you ought not think that just because a class action is filed against the lender that it would necessarily include you. Your might not be in the specific situation the lawsuit addressed. Also, if you think there might be a claim to make for some wrong the lender has done, don't sit around waiting for a class action lawsuit to solve your problem. Consult an attorney yourself to see if you might have a good claim, what you might get out of it, and what litigating it would cost you. The attorney should be able to tell you if that kind of claim might be one that is worth pursuing as a class action claim. If you do nothing, you may let the time allowed to sue go by and once the statute of limitation is gone, so is your chance to ever sue and get relief. 

  • 10-27-2012 5:39 PM In reply to

    Re: Sallie Mae Class Action Lawsuit

    Any class action lawsuit predicted for private parent loans against Sallie Mae?  I recently found out that Sallie Mae is some how holding me responsible for private parent loans taken out by an eligible adult for parent loans and because I was the student they are some how claiming that I am responsible for the repayment of loans that I NEVER saw, borrowed, or co-signed for?

  • 10-28-2012 11:39 PM In reply to

    • lealar
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    Re: Sallie Mae Class Action Lawsuit

    So just to clarify... I went for three months without paying Sallie Mae while I did not have a job. I now have a job and have continued to pay Sallie Mae. My problem is how it went from $55,000 to $90,000 in THREE MONTHS. My second problem is that after three months my credit score went down significantly and the only bill I was not able to pay was Sallie Mae.
    Sorry, I do not see a problem wanting to take out a loan to pay $4,000 for two wedding bands. Let's also consider that I can pay this off in a few months and I have no intentions of ever purchasing these items again.
    I have learned through my research that Sallie Mae will turn a borrower over to one of the collection companies they own. Before they turn you over they add 25% of the total amount which is not an "appropriate" amount that is necessary to turn you over to a collection agency, especially when they own it.
    I have all intentions of paying back the lender that allowed me to finance my education. I believe people that do not pay back the lenders is part of the reason college is so expensive now. I also believe Sallie Mae will screw over those that do pay any way they can to get back extra money to make up for those that don't pay. I have no intention of contributing to the delinquency of the system. I am, however, very upset that they would not do anything to work with my financial state or offer me a lower payment option even if it meant extending the life of the loan and paying more in interest. My only option was to pay $800. If I paid what I could afford at the time, such as $450, it was as if I didn't even make a payment.
    Perhaps I was venting more than anything. I simply have no clue how I went from $55,000 to $90,000 in three months. Surely there is a math error there and no one at Sallie Mae will talk to me regarding this issue.

  • 12-06-2012 9:50 PM In reply to

    • Jmh77
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    Re: Sallie Mae Class Action Lawsuit

    I am specifically interested if anyone has had as much trouble as I am experiencing when applying for Income-Based Repayments.  I am getting the run-around.  If I am denied (again) I will be looking for a lawyer.  I am of course not made of money, which is why I need IBR, so getting a lawyer might not be easy, but I will follow up if anyone is interested to share what happens.  I am not backing down, that I know.

  • 12-07-2012 9:21 AM In reply to

    • CCX008
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    Re: Sallie Mae Class Action Lawsuit

  • 12-13-2012 11:05 AM In reply to

    • CCX008
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    Re: Sallie Mae Class Action Lawsuit

    http://signon.org/sign/lawmakers-stop-accepting?source=c.url&r_by=5462310

    Lawmakers: STOP Accepting Campaign Cash from Sallie Mae
     
    By Robert Applebaum, StudentDebtCrisis.org (Contact)

    To be delivered to: The United States House of Representatives and The United States Senate
     

    The student debt crisis is a prime example of why it is so vitally important to get the money out of politics. Since 2011, Sallie Mae has spent over $5 million on lobbying against the best interest of of countless student borrowers and the U.S. taxpayers.
     
    With the removal of bankruptcy protections from both federal and private student loans, lenders such as Sallie Mae are able to offer loans with virtually no risk. To make matters worse, Sallie Mae also owns many of the collection companies that collect on defaulted student loans. Once a student defaults, as much as 25% can be added to the principal, allowing Sallie Mae to make more money if a borrower defaults.
     
    At a time when college tuition is skyrocketing and 1 out of 5 borrowers are now defaulting (leaving the taxpayer on the hook for the bill), student lending executives should not be rewarded for fleecing the taxpayers. Companies such as Sallie Mae are destroying our higher education system, our democracy, and the lives of millions.
     
    The ever-growing student debt crisis will never be solved as long as those whose duty it is to protect the taxpayers are in the pocket of the nation's largest student loan company.
     
    For these reasons, we, the undersigned are demanding that our lawmakers stop accepting money from student lenders such as Sallie Mae.
     
    For more information, please visit: http://studentdebtcrisis.org/lawmakers-should-stop-accepting-campaign-cash-from-sallie-mae-additional-information/ 

  • 12-16-2012 8:59 AM In reply to

    • Jmh77
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    Re: Sallie Mae Class Action Lawsuit

    It's funny you should post this link.  I just started following your blog.  The lengths they go through to try to deter us from getting into programs such as these is ridiculous.  I was only able to get in after two months of efforts and making a switch from using tax returns to pay stubs and the alternative IBR app.  I still do not understand what, condition if you will, a tax return needs to be in to be accetable.  I sent them a complete, efiled return, with signature page twice, and both times they claimed to never have received my fax.  This after mailing it and getting nowhere at that time either.  Such bull.  And to go through this every year?!

  • 12-30-2012 7:31 PM In reply to

    • CCX008
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    Re: Sallie Mae Class Action Lawsuit

    I compare SLM to the devil :

    Student Loans Likely To Outperform: Buy Sallie Mae http://seekingalpha.com/article/1085161-student-loans-likely-to-outperform-buy-sallie-mae?source=email_rt_article_readmore&ifp=0

    Because direct-student loan revenues are likely to decline, Sallie Mae will focus growth initiatives on consumer lending (student bridge loans), and student health insurance. These loans will be marketed directly through the college institution. Other initiatives include collection service on behalf of the U.S. Department of Education for collections on loans that go delinquent, or the management of college savings plans (currently Sallie Mae has $37.5 billion in assets under management). Sallie Mae also generates revenue by generating card fees through its partnership agreement with MasterCard.

    Sallie Mae's management doesn't feel that it has been severely affected by the Dodd Frank Bill as Sallie Mae is not systematically important to the financial system. For fiscal year 2010-2011 Sallie Mae provided one percent of the $235 billion used to finance post-secondary expenses. An institution that is designated as a threat to the financial stability of the United States are designated as systematically important financial institutions, these institutions will be met with further regulatory oversight by the Board of Governors of The Federal Reserve System. Since Sallie Mae is not systematically important, I don't anticipate even further regulatory oversight by the Federal Board of Governors of the Federal Reserve System. 

     

     

  • 01-14-2013 8:09 AM In reply to

    • Mageary
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    Re: Sallie Mae Class Action Lawsuit

    Do you know any lawyer willing to start a case against Sallie Mae for they loan service. I am a cosigner and they are taking me through ***heck. First, I tell them that I am permantly disable and try to get the loan discharge from under my name because I can no longer work and I am a cosigner they said it does not apply to me because it is not my loan. I called to see about the account and they tell me I have the incorrect account number. Secondly, my brother loans has double or more that the orginal loan which looks like usary to me. I could be wrong but the number just dont add up. They refuse to set a clear payment for the loan to ever be paid off in my brother lifetime. Now my credit is being affect because they refused to do an income contingency with him. I am at my last wits with then. In 2009 they were harrassing me for money when my brother was still in school.

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