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Posted in Student Loans
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Question By
ryllyx

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I had paid down nearly 45k of my 55-60k in loans before losing my job and going into deferment.
After deferment, and without contacting me, my loans were sold to a company who added 1/3 of my original loan balance back onto my balance. The same thing has happened in the last 12 months. I now owe more(?) than my original balance! is this Legal!

It continues to impact my credit score. I know i need to get back on a payment plan but to pay off 40k in fees is a federal crime! Please help.

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Write a letter to the credit bureaus asking them to validate your debt.  If they are reporting an incorrect amount owed, it will be removed from your credit report. When this happens and the credit bureaus send you a copy of your updated report. File a complaint with the FTC (Federal Trade Commission) This company is a consumer protection agency and will slap a huge fine on this company for fraudulent business practices as well as place them in the red zone for shutting down the business for pending additional compaints. Look into it. Hope this helps.

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This question sounds serious enough that it should warrant an immediate phone call to a consumer law attorney in your state. Call an attorney and go from there.

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