On 24 August 2012, Iowa Student Loan Liquidity Corporation (ISLLC) made a wholly unauthorized withdrawal for the amount of $1,083.90. I have made every attempt to rectify this matter directly with ISLLC but the money has yet to be returned to me. I understand that mistakes can happen, but two or three concerns me and considering ISLLCs history of questionable activities, I feel this matter needs to be brought to everyone's attention.
On 20 August 2012, ISLLC made a partially unauthorized withdrawal from my personal checking account for the amount of $1,083.90, to which only $541.95 was authorized. Upon immediate discovery of the incorrect amount on 20 August at 14:40, I contacted Julie at ISLLC in order to rectify the incorrect amount withdrawn. Julie said that in order to return the unauthorized amount, I would need my bank, First National Bank of Muscatine (FNB), send an affidavit letter requesting the unauthorized amount of $541.95 to be returned to my checking account. FNB faxed said letter the morning of 21 August to ISLLC, and then $1,083.90 was returned to my checking account that same day.
Then, on 24 August 2012, ISLLC made a wholly unauthorized withdrawal from my personal checking account for the amount of $1,083.90. Upon discovery on 28 August at 19:41, I contacted ISLLC and spoke to Audrey in order to rectify the withdrawal. Audrey agreed that the withdrawal shouldnt have happened, but needed more time to review. I explained that time was of the essence, and that I needed the money returned to my checking account by the end of the week in order to be able to pay my mortgage and other bills due. On 29 August at 17:54, Audrey called me and said that in order to return the money, an affidavit letter was needed from my bank, and once received, ISLLC would return the money by the end of the week. She insisted a second letter be sent, even though confirming an existing one was already on file. She also requested a letter from me acknowledging a past due status on my account upon returning the funds. On 30 August, an affidavit letter and a letter of acknowledgement were both faxed to ISLLC.
On 31 August at 10:13, Audrey from ISLLC left a voicemail stating they hadnt received a letter from FNB. I contacted FNB who confirmed the letter was faxed via a fax confirmation on file. FNB agreed to resend the fax to ISLLC. At 15:13, I received a call from Myneka, who confirmed receipt of the letter from FNB, but stated the format for the letter was incorrect. She said that another letter was needed to confirm the amount of $1083.90 would clear the bank, even though the funds had already cleared on 24 August. At approximately 16:30, FNB faxed the aforementioned letter to ISLLC.
Then, I received a letter from ISLLC dated 05 September 2012 stating that all of my loans were seven (7) days delinquent for a total amount of $541.95. This shows that none of the money was applied to my loans, even though ISLLC withdrew the money from my personal checking account. I called ISLLC on 31 August, and according to Cherry, my account was current. This shows that ISLLC's internal records do not match, disproving ISLLC's claim that it is the consumer's fault that these things happen.
I filed a complaint with the Iowa Attorney General, and an AAG was assigned to the case. Through several attempts over several weeks, the AAG was unable to get the money returned to me, despite internal auditing through the Iowa College of Student Aid Commission. Even threats of sending the file to the Consumer Protection Division couldn't get ISLLC to budge. My records show a clear picture of dishonesty, theft and lies on the part of ISLLC, especially from the Loan Servicing Manager at ISLLC--Janine.
The case is now open, and in the hands of Consumer Protection Division of the Iowa Department of Justice.