• Report: #423294

Complaint Review: Sallie-Mae General Revenue Corp

  • Submitted: Thu, February 12, 2009
  • Updated: Sat, November 28, 2009

  • Reported By:Bear Delaware
Sallie-Mae General Revenue Corp
Cincinnati, Ohio wilmington, Delaware U.S.A.

SALLIE MAE - GENERAL REVENUE CORP - LOAN SCAM Cincinnati Ohio

*Consumer Suggestion: ladyirish

*UPDATE EX-employee responds: Sorry, but it's not illegal

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My student loan was originally with Sallie Mae. In 2007 I supposedly went into default. Sallie Mae presented me with paperwork to sign and said my loand was in default. They garnished my wages for $340 a month about a year ago. It was not until I got my 1098 this year showing how much interest I paid and I began to dig deeply into my student loan that I saw that Sallie Mae turned the loan over to General Revenue Corp which is a collection agency OWNED BY SALLIE MAE. This is wrong.
Secondly, I determined they are charging me 26% interest!

I have written to the US dept of education and they tell me the loan must stay at the original interest rate unless a court changes the rate. There was never any court involved. They are also charging me close to $5,000 in collection fees! I understand from the Dept of Education they can charge fees BUT how can they justify that amount of fees when there was not attorney involved - nothing.

Basically Sallie Mae dumped me to General Credit (again Sallie mae owns them) and now I am paying HUGE interest AND my loans will never be paid off. When they tossed me into default my credit was DESTROYED. I also read you can rehabilitate but you have to pay 9 consecutive payments and you CANNOT include the wage attachment - how can I afford that? I am sending documentation to Sallie Mae, General Credit, my former senator (VP Joseph Biden, my Congressman Mike Castle and Senator Carper) What they have done to me is illegal.

John t
Bear, Delaware
U.S.A.

This report was posted on Ripoff Report on 02/12/2009 09:49 AM and is a permanent record located here: http://www.ripoffreport.com/r/Sallie-Mae-General-Revenue-Corp/wilmington-Delaware-19701/SALLIE-MAE-GENERAL-REVENUE-CORP-LOAN-SCAM-Cincinnati-Ohio-423294. 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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#1 Consumer Suggestion

ladyirish

AUTHOR: Ravenslvr - (U.S.A.)

you claim to be an "ex employee" but the way you comment on every single post about sallie mae, sounds like you either still work there, or want to work there. you are very much in love with this company. which makes it pretty clear...you STILL work there. stop posting on all the reports about how wrong they are. you're wrong for mis-representing yourself as an honest person
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#2 UPDATE EX-employee responds

Sorry, but it's not illegal

AUTHOR: Ladyirish - (U.S.A.)

First of all, Sallie Mae was the original holder of the account, but they are not who turned the account over to General Revenue Corporation. That would be the guarantor - generally a company like United Student Aid Funds, Direct Loans, New York Higher Education, etc. These agencies contract with General Revenue to collect on their defaulted accounts.

Secondly, General Revenue does not have the power or the authority to change interest rates. Whatever is listed on record when the guarantor turns over the account is what they are legally bound (to the agency that contracts with them) to collect. If you have a complaint, it needs to be addressed to the guarantor - not General Revenue.

Wage Garnishment is the last stop for accounts that go through collections, and is the legal responsibility of the collection agency - regardless of who it is. By law, they can garnish up to 15% of your disposable income. And, because it's a federal loan, the only garnishments that would come before it are Child Support and Tax Garnishments.

Remember, when you originally signed for your loans, you agreed that if and when the loan went into default, the balance would accelerate to being due in full. That includes interest and collection fees. Anything the collection company offers you, outside of paying the balance in full, is a courtesy - not a requirement. They don't have to work with you.

While wage garnishments don't count toward the loan rehabilitation program, I would suggest you look into it, and ask the garnishment supervisor if the garnishment could be lifted after you show and willingness and ability to pay monthly. The benefit to the rehabilitation program is that it not only removes the loan out of default, but also clears your credit report - completely.
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