Go Back   LegalMatch Free Legal Advice Forums > Bankruptcy Law, Banking and Credit Law Forum > Finances, Credit & Collections
FAQ Members List Calendar Search Today's Posts Mark Forums Read

Find a Lawyer Now By Category:
Family & Divorce Criminal Defense Job & Employment Personal Injury LegalMatch on Facebook
  Real Estate Lawyers Immigration Business Lawyers Other Lawyers LegalMatch on Twitter
LegalMatch is Fast, Free and Confidential
Reply
 
LinkBack Thread Tools Display Modes
Old 03-10-2009, 09:27 PM   #1 (permalink)
Junior Member
 
Join Date: Mar 2009
Posts: 4
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.
GMCNurse is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-11-2009, 04:50 AM   #2 (permalink)
Senior Member
 
Join Date: Nov 2006
Posts: 3,905
Send a message via AIM to GentleGrace
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.
__________________
Grace

To ERR is human.
To FORGIVE is divine.
NEITHER is my policy.
GentleGrace is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-11-2009, 07:07 AM   #3 (permalink)
Senior Member
 
Join Date: Nov 2008
Posts: 365
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.
donallie is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-11-2009, 11:06 AM   #4 (permalink)
Junior Member
 
Join Date: Mar 2009
Posts: 4
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.
GMCNurse is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-11-2009, 01:18 PM   #5 (permalink)
Senior Member
 
Join Date: Nov 2008
Posts: 365
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.
donallie is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-11-2009, 03:46 PM   #6 (permalink)
Junior Member
 
Join Date: Mar 2009
Posts: 4
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.
GMCNurse is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-11-2009, 08:37 PM   #7 (permalink)
Junior Member
 
Join Date: Mar 2009
Posts: 4
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.
GMCNurse is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-12-2009, 06:10 AM   #8 (permalink)
Senior Member
 
Join Date: Nov 2006
Posts: 3,905
Send a message via AIM to GentleGrace
Quote:
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.
__________________
Grace

To ERR is human.
To FORGIVE is divine.
NEITHER is my policy.
GentleGrace is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-12-2009, 12:00 PM   #9 (permalink)
Senior Member
 
Join Date: Nov 2008
Posts: 365
The use of small claims court against a secondary lender is still very much a simple issue. They were successful in killing her Sallie Mae loan without first seeking confirmation that she wanted the loan at the interest rate and amount stated. The fact that NOTHING was forwarded to her says this is a fraudulent... truth in lending... loan meant to capture new business with no meeting of the minds.

The question of whether the $70K loan value could negate the use of small claims is moot. What she would sue for is the increase in rate over time since they have now killed her SM loan. That amount could easily reach big numbers over 15 years, but for now, let's just say that given the circumstances, the court can order them to give her a replacement loan for the rate she was informed she could get in the first place. In no way can a loan company kill a government loan without first getting a VALID agreement on the loan.

This could easily end up as a class action suit against Wells Fargo. THAT is why I said she should go to the state Attorney General. She needs her own lawyer, but from what she says, she HAS covered her bases for proof. I'd bet the attorney general WILL be an asset to negotiations to replace the fraudulent loan with a reasonably priced replacement loan... or that they will have to reinstate the Sallie Mae loan.

So... go have a talk with the right folks. We don't need to give you anything more. You know where to go and what you must do.

Last edited by donallie; 03-13-2009 at 07:23 PM.
donallie is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 03-12-2009, 04:48 PM   #10 (permalink)
Senior Member
 
Join Date: Nov 2006
Posts: 3,905
Send a message via AIM to GentleGrace
Small claims limitations are usually no more than $7,500.
__________________
Grace

To ERR is human.
To FORGIVE is divine.
NEITHER is my policy.
GentleGrace is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On




All times are GMT -7. The time now is 10:41 PM.


Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.1.0
Copyright ©1999-2008 LegalMatch. All rights reserved. LegalMatch®, the LegalMatch
logo, and the tradedress are trademarks of LegalMatch. Patents Pending.