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Beling law firm

Started by Kevin11846, December 12, 2015, 12:43:41 pm

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Kevin11846

I really need help with this one. I've searched for quite some time online and can't find anything definitive one way or another on this.
I was contacted by a student loan debt solution company who transferred me to a guy that said he could help me with my private loans. I had sometime so I heard him out. He said that what they do is they try to settle the private loan debt for less through arbitration, potentially cutting my debt in half. He said that the first thing they will do is give my loan servicor a cease and desist. Requiring them to stop communication and payment collection during discovery. While in discovery, the law firm would make sure that the loan servicer followed all the rules throughout the loan regarding Truth in Lending and other regulations. To try to make this long story short, they would bring anything that they discovered to the servicer and settle the amount owed for half roughly. I've always been taught that if it sounds too good to be true, then it probably is, however a lot of loan servicers have been sued lately by the CFPB and other protection agencies. Any info would be great as I cannot find much so far through Google.

TheCollegeInvestor

Please don't do this with this company. If you're looking to pursue this route, talk to a real student loan lawyer NOT affiliated with a document processing company. There may be options, but in truth, it's very, very rare.

What they're not telling you is this:
1. They will want you to stop making payments (which will harm your credit score)
2. They will send a letter to your lender asking for discharge, which means nothing to the lender and they won't stop
3. They will possibly ask your lender to prove they own your loans (which they likely do) or have legal right to service them. With Federal loans this won't apply as the Government owns your loans and they use loan servicing companies on your behalf.
4. They this company will then say "well, you can see this borrower hasn't been paying, can you accept 40% of the loan?" The bank still doesn't have to agree and you could still owe at the end of this. Basically, the lawyer will use this drawn out process to make it look like you can't pay.

Regardless what happens, you will pay the law firm hundreds per month for several years (you didn't say how much, but this is typical). There is no guarantee it will work, and even if it does, it takes months or years. You will have poor credit as a result and will still be digging yourself out of a financial hole for the next 7 years or more.

Like I said, talk to an independent student loan lawyer if you're looking to pursue this. The lawsuits you see from the CFPB are for specific fraud cases, not really helping general borrowers. If you were a victim of true fraud, that is different, and even then, talk to a true student loan lawyer.

northwoods

I believe I have been scammed.  I pay a group $329 per month to help me with my private loans. I was refereed to them after getting help consolidating my federal loans. They state that they sallimae and navient use unfair practices and that they will be able to eliminate my private loan debt by bringing to light these illegal and unfair practices. I needs help this one. At first i was under the impression that is was a one time payment and consultation to see what my options were and now they have sent a cease and desist  out and take money each month. It was a complete shock. I even called my bank to say I had not given them permission to take monthly payments. Then the company sent me an original agreement with an electronic signature stating that i  agreed to make payments for 2 years. How do I get out of this mess? Some days I believe they are on my side.....other days I am filled with anxiety. Any suggestions. I am an overworked young RN who should be enjoying my life and starting a family. instead I am broke!

TheCollegeInvestor

If you want to fight it contact a legitimate consumer protect lawyer in your area.