http://www.businesscreditamerica.com/landing/sallie-mae-student-loan-illegal-practices/
Hey guys! Houston here with Business Credit America, and today I'm just gonna get right to the point, and I wanted to talk to you all about Sallie Mae Student Loans. And I know from many of you all, may have seen my student loan video removal of Sallie Mae Student Loans. And the thing about it, you actually can't have those type of student loans because they're, not under the government guidelines. If you have government student loans, you can go to
http://www.direct.ed.gov/. If you go to
http://www.direct.ed.gov/, right there, all of your government student loans, they can consolidate them all into one, and they will lower your payments.
In reference to your private student loans, because they're all under FDCPA, you have the right if you have to, if you need to file bankruptcy, those types of student loans, you can, especially like Sallie Mae. Sallie Mae is a privately held company, and I tell a lot of people that call me, and I talk to them about their student loan. By them being a privately held company, they're not under the government guidelines. And so you do have a right to file bankruptcy under that because like with Wells Fargo, with Chase Bank, Sallie Mae, they all fall under...
What type... What it is is that Sallie Mae... Sallie Mae, what they were doing, they would go to the government, and they would buy student loans from the government. And then, "Okay, we're going to service these." So the government like, "Well, okay. If you service these then, you have to pay us a monthly insurance payment on these loans." See, when you took a student loan, they automatically used... But most of the time they automatically loaned you until the insurance program. And so that insurance program was for in case you default, then the insurance company pays off that loan for you. And so, like a lot of people, they don't know that.
And if you ask for your original contract with whoever, whatever school you went to, when you signed up for Sallie Mae, if they can't produce that contract, then they should not be reported on your credit report anyway. Also, another thing that Sallie Mae does is that say, that you defaulted way back when on your loan. What they'll do to keep on the collection practices, they'll re-age your account. And so they never report the original default date. So that puts you, like you're just starting over when you actually, because of the seven year time lapse on a loan or a regular loan except for a government loan, then it should have been folding up your credit anyway. But what they do, they re-age your account so to keep the student loan on there, especially when they're not backed by the government.
In Chae, the Ninth
Circuit affirmed summary judgment for Sallie Mae on
the claims of student loan borrowers
under the UCL and CLRA alleging fraudulent misrepresentations and other state
law claims. Unlike the "Private Education Loans" at issue here,
commonly known as CEC Signature Loans, which are not guaranteed by the federal
government, FAC ¶ 2, the student loans
at issue in Chae were made under the Federal Family
Education Loan Program.
In Chae, the court of appeals held that "the plaintiffs'
allegations that Sallie Mae makes
fraudulent misrepresentations in its billing statements and coupon books are
expressly preempted by the [Higher Education Act ("HEA")], and
conflict preemption prohibits the plaintiffs from bringing their remaining claims
because, if successful, they would create an obstacle to the achievement of
congressional purposes." 593 F.3d at 950. As Defendant in this case recognizes, Chae was
decided under a "different regulatory scheme." Mot. at 4 n. 4. The
parties have not identified any statutory authority for Sallie Mae's "Private
Education Loans" at issue here. The Court thus limits its preemption
analysis to the NBA.
[2] In its reply brief, Sallie Mae states, without providing any support,
that Genna's claim is preempted by the Fair Credit Reporting Act
("FCRA"), 15 U.S.C. § 1681(a) et seq. Reply Mem.
Further Supp. Def.'s Mot. Dismiss 4. We disagree. The FCRA imposes duties on
consumer reporting agencies, users of consumer reports, and furnishers of
information to consumer reporting agencies. See Kane v. Guar. Residential Lending, Inc., No.
04 Civ. 4847, 2005 U.S. Dist. LEXIS 17052, at
"6 (E.D.N.Y. May 9, 2005). With respect to the furnishers' duty—the only
duty arguably applicable here—15 U.S.C. §§ 1681s-2(a) and (b) require that
furnishers "report accurate information and ... correct inaccurate
information" as well take certain steps once a credit reporting agency
notifies furnishers that there is a dispute as to the information provided. The
claims here, while certainly encompassing consumer protection writ large, are
not covered by 15 U.S.C. §§ 1681s-2(a) and (b), since the issue is not whether
the information reported by Sallie Mae was
or was not accurate, but rather whether SallieMae's conduct
contributed to Genna's default, which, in turn, negatively affected Genna's
credit score.
