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Old 03-10-2009, 09:27 PM   #1 (permalink)
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Question Wells Fargo Student Loan Consolidation

I am just praying someone can shed some light on this. I graduated college last May and began paying student loans that I had through Sallie Mae back in December 2008. I applied for a consolidation through Wells Fargo in January to see if I could get a better interent rate and payment. After I applied and signed the promissory note and faxed it the next week they sent the Loan Disclosure form saying I had been approved and they had sent the funds to Sallie Mae. The Loan Disclosure form and the promissory note and the application all say that if I don't like the terms I am under no obligation to accept the loan. I called the same day I recieved the Loan Disclosure and was told that the funds had already been sent and I could not cancel it. Since then I've had to conact Wells Fargo multiple times and finally contacted their corprate office, where the head of the loan dept. said, "Oh I'm so sorry let me fix this". Well it still hasn't been fixed and now both their loan and the sallie mae loan are tying up my credit. I think I need to hire a lawyer but I'm unsure?? And what type of lawyer do I hire?? I have all of my paper work, I've recorded my calls, and kept copies of all of my emails!!! I feel like I'm ready to fight but I'm not sure where to start. Please help me if you can. Thank you.
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Old 03-11-2009, 04:50 AM   #2 (permalink)
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Quote:
Originally Posted by GMCNurse View Post
I am just praying someone can shed some light on this. I graduated college last May and began paying student loans that I had through Sallie Mae back in December 2008. I applied for a consolidation through Wells Fargo in January to see if I could get a better interent rate and payment. After I applied and signed the promissory note and faxed it the next week they sent the Loan Disclosure form saying I had been approved and they had sent the funds to Sallie Mae. The Loan Disclosure form and the promissory note and the application all say that if I don't like the terms I am under no obligation to accept the loan. I called the same day I recieved the Loan Disclosure and was told that the funds had already been sent and I could not cancel it. Since then I've had to conact Wells Fargo multiple times and finally contacted their corprate office, where the head of the loan dept. said, "Oh I'm so sorry let me fix this". Well it still hasn't been fixed and now both their loan and the sallie mae loan are tying up my credit. I think I need to hire a lawyer but I'm unsure?? And what type of lawyer do I hire?? I have all of my paper work, I've recorded my calls, and kept copies of all of my emails!!! I feel like I'm ready to fight but I'm not sure where to start. Please help me if you can. Thank you.
By fixed what do you mean? You mean you want the process reversed? Also, on the loan disclosure statement, it should stipulate the amount of time you have to cancel the agreement---usually 24-48 hours. What does your paperwork give as the time frame for cancelling the process? When they tell you "Let me fix this" what do they tell you they are doing TO fix it? Are they telling you the time has past to withdraw from the agreement?

Most importantly--did you SIGN the promissory note and return it? If nothing has your signature, you should still have some recourse. But, if you signed the promissory note and later changed your mind, it might be more difficult.
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Old 03-11-2009, 07:07 AM   #3 (permalink)
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Time to rescind is generally three days, but when handled by mail, it can be unlimited to a point because of the mail delay. As for the idea that Grace thinks they can set up a loan without giving you the loan terms, forget that idea. Without the loan terms, there is no agreement... even if you have signed a promissory note.

Never sign something without keeping a copy of it for later perusal.

Take what you have to small claims court * if possible *. Seek an immediate rescinding of the loan and request that it be put back to status quo before they got their hands on it.

Then go get a local loan.

Better yet, get a local loan and pay them off if they haven't charged you some kind of large fee for the loan. If they have, go to small claims court to have that fee killed if they refuse to do so.
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Old 03-11-2009, 11:06 AM   #4 (permalink)
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The time frame to cancel this specific loan was 15 business days, but I called the day I recieved the Loan Disclosure form and the representative I spoke with told me there was nothing they could do that I was stuck with the loan. I continued to call several more times until I got through to a supervisor who said that he was sorry for all the problems he would cancel the loan right away. When he didn't do that I contacted their corprate office and the head of the loan dept. said she would see that it got cancelled. Well, that still hasn't happened. Yes I signed the promissary note, but it clearly states on the last line, "by signing this promissary note you understand that you are under no obligation to accept credit from this bank if your loan is approved". So what has happened is they sent the funds to Sallie Mae after I was approved, and since Wells Fargo drug their feet about cancelling it the funds got deposited and so it shows my loan with Sallie Mae is paid off and my loan through Wells Fargo is in repayment. I don't want the loan through Wells Fargo and who knows if Sallie Mae will even reinstate the loan with the way the economy is, but that is not my problem because it is their job to contact Sallie Mae about reinstating it.
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Old 03-11-2009, 01:18 PM   #5 (permalink)
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Unfortunately, I don't see HOW you can avoid getting involved. You wanted a different loan. Please explain why you don't want the Wells Fargo loan and then let's see what can be done about it. Are you currently employed? What state are you in. Since there were apparently several Sallie Mae loans, do you have detailed documentation on them?

Have YOU contacted Sallie Mae?

If the amount of your loan increase (assuming that is the reason you don't want this WF loan) is below your state's small claims court limit, we can start there, but there may be no way to reinstate the Sallie Mae loan since so much time has passed since they paid it off. Not necessarily your fault, but it is still a very long time.

The point I have to make here is that you need to do business in writing and you need to get responses in writing. The telephone is a wonderful instrument, but it doesn't help much since you can't even tape a call without telling those on the other end that you are doing so... thus you have no proof of what they said.

But it is possible that the court will see that the WF loan was put in place unlawfully and will see to it that they cannot charge large fees to place the loan... or perhaps it is that they did not improve your interest rate... then the court might find it appropriate to force them to rewrite the loan at your old rate or lower if they promised lower.

This cannot be so large that it would surpass the small claims court limit. I know lots of students have BIG loans, but fees and interest differences even on $40K you would still probably find the small claims court useful.

You need to speak to a local lawyer for your state's information and the applicability issues considering that this is a very egregious error if it cannot be corrected through Sallie Mae. It could be that they violated the law in doing what they did. You should first call the state's attorney's office to see what they think.

Wells Fargo has been known to do things financially that are unethical. The average state's attorney won't bite for a single case, but yours could be the one that tips the scale. At the very least the state's attorney could negotiate a settlement so you don't have to get yet another loan.

If all else fails, if you are employed, you can try for another loan elsewhere... but recognize that in this case they are costing you a relationship on your student loans that you might not be able to replace. Keep that in mind if you go to small claims court. Another loan place might want greatly increased interest rates.
Good luck.
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Old 03-11-2009, 03:46 PM   #6 (permalink)
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I don't want the Wells Fargo loan because the interest rate is outrageous. I am a full time registered nurse. I live in Georgia. Initially Wells Fargo told me that I needed to contact Sallie Mae and tell them to cancel the loan, which I did and they told me that Wells Fargo had to cancel it. I called Wells Fargo everyday until they said they were going to cancel it and by the time they actually tried, Sallie Mae had already deposited the funds. I recorded all of my conversations and told them I was recording them. I also emailed everytime I called and have copies of those, I also sent certified letters and have copies of that. I feel like I've gotten everything pretty much in order. The loan amount is for $70,000 is that too much for small claims court? I've looked online for a lawyer but I don't see any that do student loans or anything, and since I've never hired an attorney I didn't really know where to start looking. Any advice helps. Thanks.
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Old 03-11-2009, 05:35 PM   #7 (permalink)
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Accuracy check, aisle four.........

First of all, it is perfectly legal in Georgia ( which is a "one party" state) to tape record conversations as long as ONE party knows it is happening. In other words, I could not tape record my neighbor talking on her phone to her mother, but I could tape MY conversation with my neighbor ( ONE party must be aware of the taping, NOT necessarily both). There is ONE mistake you are being told.

Second mistake--- Student loan lawsuits are not adjudicated in small claims court.

I, too, have student loans through Sallie Mae. Then, they were bought by ACS. Then a few months ago, I received information from the Federal Government about a FEDERAL program ( not affiliated with ANY business) that allows you to consolidate and repay your loans based on one of many different options. I chose the INCOME based option. It is from "DIRECT LOANS", US Department of Education ---they are the holders of my loans now. And, my repayment schedule is based on my income, so if I lose a job, I don't have to pay. And if , in twenty years, my loans are not paid off, the balance is forgiven.

Here is the contact information I used: (note--this is NOT a business, or private enterprise, but an effort by the US Department of Education to assist students in paying back their loans in a reasonable fashion)

Hope you will contact them. They cannot help you with the past situation, but they may be able to help you get out from under this Wells Fargo fiasco.

Let me know how it works for you.

DIRECT LOANS
William D. Ford Federal Direct Loan Program
US Department of Education, Consolidation Department
PO Box 242800
Louisville, KY 40224-2800
1-800-557-7392
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Last edited by GentleGrace; 03-11-2009 at 05:49 PM.
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Old 03-11-2009, 05:55 PM   #8 (permalink)
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Quote:
Originally Posted by donallie View Post
As for the idea that Grace thinks they can set up a loan without giving you the loan terms, forget that idea.

I will make this simple.

Copy and paste the sentence where I said they can set up the loan without giving you the loan terms.

Where did I say that?

COPY and PASTE IT.

Do it.

WAIT--YOU CANT!!

DID you see my posting where it says, "Also, on the loan disclosure statement, it should stipulate the amount of time you have to cancel the agreement"

WHERE did I say they can set up the loan WITHOUT giving her the terms??

If you cannot find something to disagree with , you MAKE SOMETHING UP.

STOP making up absurd things I never said.

And, gosh, this is so basic, it is almost embarrassing to point out. YOU said
Quote:
Originally Posted by donallie View Post
Without the loan terms, there is no agreement... even if you have signed a promissory note.


Uhhhh---a[COLOR=red] PROMISSORY NOTE SPECIFIES LOAN REPAYMENT TERMS. They are one in the same. [/COLOR]An agreement to repay [COLOR=red]INCLUDES the TERMS of repayment OR it is NOT A PROMISSORY NOTE. [/COLOR]


Promissory Notes Specify Loan Repayment Terms

[COLOR=red]A [/COLOR][COLOR=red]Promissory Note[/COLOR][COLOR=red] [COLOR=seagreen]is[/COLOR] a contract that stipulates the terms and conditions under which a borrower is going to repay money loaned to him or her from a loan maker.[/COLOR] [COLOR=#0066cc]Promissory Note[/COLOR] forms usually specify the amount borrowed, the interest rate, payment schedule, and maturity date. [COLOR=#0066cc]Promissory Note[/COLOR] forms also typically specify the consequences should the borrower default on the loan.

[COLOR=#800080]http://www.rocketlawyer.com/free-legal-help-Promissory+Notes+Specify+Loan+Repayment+Terms.aspx[/COLOR]
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Old 03-11-2009, 08:37 PM   #9 (permalink)
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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.
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Old 03-12-2009, 06:10 AM   #10 (permalink)
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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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