• Welcome to The Student Loan Debt Forum | The College Investor. Please login or sign up.
 

Private Student Loan Attorney a Scam?

Started by JoeShmoe, February 03, 2016, 09:26:03 am

Previous topic - Next topic

JoeShmoe

Recently sought out a service by Go 2 Funding regarding my private loan. Basically they said they would start by sending a cease and desist to my lender. From there they would be investigating my situation for illegal practices such as predatory lending. In the meantime i would be paying them monthly payments that go into a Trust Fund until the case is resolved. Basically my 53k loan debt would turn into me paying them 21k at 0% for 5 years. I havent agreed to anything but it just seems like a scam. Can anybody relate or help me with this? thanks

TheCollegeInvestor

Be very careful in working with any law firm. Make sure that you ask them exactly what steps they are going to take in fighting this.

A lot of people get burned dealing with law firms trying to get their student loan debt dismissed.

Make sure they don't ever:
1. Ask you to stop making payments
2. Ask you to make payments to them

Both of these are big red flags that they are NOT trying to help you.

Most people don't ever need a student loan lawyer unless you're struggling to get out of default, or you are being sued by your private lender.

If neither of these apply, all good lawyer will do is:
1. Validate that the debts are legitimate (which you likely know to be the case)
2. Validate that they haven't violated any debt collection laws (which you could sue them for violating)

If you're making payments and have no issues, then a lawyer isn't a good option.

justinjjg

Hi

I had a similar thing happen to me recently. They gave me payment options and I gave them a lot of info. No payment has been taken out of my account yet and if worse comes to worse I could cancel my account and open a new one. But should I be worried that I E-signed this document saying I would send them monthly payments of $107 for 96 months? Or can I cancel this contract at anytime?

TheCollegeInvestor

You would have to read the cancellation agreement. Typically, if you don't pay, it gets cancelled, but you have to read the agreement you signed.