- Report: #37402
Report - Rebuttal - Arbitrate
Complaint Review: SLM Financial div. of Sallie Mae, Ameritrain
SLM Financial div. of Sallie Mae, Ameritrainhttp://www.slmfinancial.com/ Cherry Hill, New Jersey U.S.A.
SLM Financial - a Sallie Mae company, AmeriTrain Thieves fraudulent ripoff business the business that doesnt give a d**n victimized many consumers Cherry Hill New Jersey
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SLM Financial does NOT follow their own stated policies!!!
I, as almost 500 others, somehow found myself sitting in a chair in front of an AmeriTrain salesperson. AmeriTrain was a school that supposedly offered courses for certification in the ever expanding computer IT market.
The sales representative stated that I could be approved for a loan for the tuition amount and to fill the paperwork. The header of the loan application said:
SLM Financial Corporation
a Sallie Mae company
I have done business with Sallie Mae in the past. Sallie Mae deals in Title 4 school loans which are guaranteed by the federal government. So this was no red flag to me.
SLM Financial uses the Sallie Mae name to make loans and since Sallie Mae (according to supervisor, Tina at Sallie Mae) only offers federally guaranteed student loans it could be misconstrued that SLM Financial being a "Sallie Mae company" does as well.
SLM Financial approved my loan at a rate of 7.86%, I was a lucky one, several other students have rates in excess of 17%.
Everything was fine until AmeriTrain closed it's doors and displaced over 500 students and SLM Financial customers. Some students had never set foot in the classroom. Douglas Davis, CEO, Founder, Liar and Thief, offers no refund to the students for services NOT rendered. AmeriTrain filed bankruptcy and the students are left with nothing.
There is evidence of criminal activity (including fraud), but SLM does not offer any assistance or concern. One would think SLM attorneys and investigators would be very interested in locating the MILLIONS of dollars of tuition loans, financed through SLM Financial, that mysteriously disappeared.
In the recent past, several computer education facilities have closed, Computer Learning Center, Solid Computer Decisions, ICTS and AmeriTrain. These closures prompted SLM Financial to realize their mistake at providing the entire loan amount to the school at once.
I have received conflicting reports on when this policy went into effect, but one thing is for sure, it is always a date after my loan was approved!! I spoke with Heather in school closings on or around 8/8/02 and she explained that my loan was approved in March and the policy went into effect in April.
I just got off the phone with Deena in Quality Assurance and she told me that the policy of incremental disbursement went into effect in June.
I asked Deena about the students who were approved in July and the entire amount was given to the AmeriTrain. She could not give me an answer other than "I need to see the account".
It's all about the money!
Deena admitted to me the reason SLM took so long to implement the incremental distribution policy was because SLM was afraid of a loss of business. If a business wants to be paid in full for services NOT rendered and the business will NOT accept incremental payment as services are performed, then it would be a WISE decision to NOT conduct business with the suspicious company!
Throughout the course of my journey for restitution, I have come across individuals who claim they have witnessed certain crimes committed by SLM financial, including "Kick-backs" or "buying" the business from a company. Monetary compensation for the person who suggested SLM Financial.
This claim only reinforces our original beliefs based on SLM Financial's lack of concern for the losses the students sustained. What we are experiencing is a "tough luck" attitude from SLM, even though SLM has since changed it's policy toward disbursement of funds.
In several states, AmeriTrain was operating UNLICENSED.
In those states, SLM's solution is to find a company who is willing to take the displaced students and provide a "similar" education. The problem with this is SLM is only willing to offer a fraction of the tuition for a "similar" class. This is called a "Teach-Out".
There are absolutely zero provisions in the contract pertaining to a school closure. Therefore, this raises the question, is a Teach-out a legal option? I feel it's a way for SLM to keep from refunding the money to their customers, which is the only reasonable response to a school closure.
I have taken many loans on many items and the bank ALWAYS has some way to insure the loan. If you buy a car, the bank will not loan the money until the vehicle is verified. You cannot drive such a purchase without the BANK forcing you to carry a certain amount of insurance to protect the investment. Same with a house, same with Title 4 schools (government insured school loans). SLM Financial had absolutely no concern about the money that was dispersed to any of the schools that failed.
This is not a new phenomenon! They know the risks. Yet, SLM Financial's only insurance is the end consumer who just lost their money and the education for their future income which was to be used to pay the loan! SLM keeps people paying for these bad loans by threatening their customers valuable credit rating.
I have accepted responsibility for choosing the wrong type of school, I have accepted responsibility for choosing the wrong financial organization for my loan. However, I will not sit quietly and allow this behavior to affect others like me. I will not hide in the shadows and allow companies, who claim to "serve" customers, shed their responsibilities and obligations in the name of the almighty dollar!!
I strongly warn ANYONE and EVERYONE to NOT use SLM FINANCIAL!!! Based on my experiences, they are THIEVES who are only concerned about the interest they collect. UNFAIR business practices should NOT be rewarded!!! Do not use SLM Financial!!
SLM, I encourage a response to be posted here. I want to hear your side of the story. I want you to post in writing how your actions are to help the student and not specifically to line corporate pockets. If your response is satisfactory, then I will withdraw my complaint and replace it with a personal apology.
It must also be stated, the only response that I feel to be satisfactory is a discharge of every outstanding SLM Financial loan and a reimbursement of payments and interest collected for every AmeriTrain Student!!
Click here to read other Rip Off Reports on Ameritrain, Inc.
This report was posted on Ripoff Report on 12/06/2002 12:12 PM and is a permanent record located here: http://www.ripoffreport.com/r/SLM-Financial-div-of-Sallie-Mae-Ameritrain/Cherry-Hill-New-Jersey/SLM-Financial-a-Sallie-Mae-company-AmeriTrain-Thieves-fraudulent-ripoff-business-the-bu-37402. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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