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Old 03-12-2009, 06:10 AM   #8 (permalink)
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Join Date: Nov 2006
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Originally Posted by GMCNurse View Post
Actually the promissory note does not have any loan terms on it because I signed it before the loan was approved. The only thing it says on it is my basic information and a long paragraph which I have read over and over that says it gives them the right to check my credit, it gives them the right to contact Sallie Mae regarding my original loan, and I LOVE the very last line that says: By signing this promissary note and application you understand that you are under no obligation to accept credit from this bank even if you are approved for the loan. When I read that line to them on the phone they didn't really have alot to say. I recieved the term of the loan after I signed that and my loan was approved on the Loan Disclosure form which also says that if I don't want the loan I should contact them which I did....and here we are now.
According to the legal definition of a promissory note, a promissory note MUST include repayment terms ( loan terms ). If for no other reason than that, you would be able to get out of this contract.

Something else you could try---I did this recently with a debt collector whose debt I disputed. They attempted to assert I owed money for a utility bill from 9 years ago. However, that was before I was widowed and I at no time had ANY utilities in MY name until my husband was killed in 2007. So, I knew the debt was not mine. They reported to the credit bureau, etc. I looked up the statute of limitations in my state and sent them a certified letter telling them pursuant to such and such a law, (my state law) that I 1. disputed the debt and 2. the statute of limitations of 3 years in my state had long since passed. And if they continued to attempt to collect, I would report them to the appropriate agency.

Now, what you can do is first of all, go ABOVE the current respondants. Find out who is in the legal department, in supervisory positions, etc. (i.e. someone who is ABLE to make a decision and DO something about this). The problem is that during the time it takes to get this resolved YOUR credit is on the line and defaulting on a student loan is serious. First is make a copy of what they are calling a promissory note (or ask an attorney to do this) and point out that it doesn't meet the legal definition of a promissory note since it has no loan repayment terms. Present to their legal department or supervisors all of the information you have that they are in violation of the law (or have an attorney do this).

Or perhaps it would be quicker to just go with another company to get yourself out of immediate "danger" of default, so to speak. Getting them to reverse this is going to be a full time job, I am afraid. My opinion ( this is not fact, but merely opinion) is to get with another company FIRST so you aren't paying outrageous fees THEN devote yourself to going after this company. This type of company has deep pockets and you may be able to win a significant judgment against them if they indeed violated the terms of their agreement without legal authority to do so.

And, most importantly, having a promissory note that does NOT INCLUDE the terms of repayment means it does NOT meet the legal requirements for even being called a promissory note.

Good luck.

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