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Sallie Mae / unfair collection practices

1 United States Review updated:

I contaced Sallie Mae May 1, 2007 after the sudden death of my 23 year old son, whom had a student loan with them. I was told to send the death certificate to them and that they would handle everything. We sent the death certificate certified mail to them in May of 2007. I personally had taken out a parent loan for my son and continue to make payments to this account. In July of 2007, I received a refund check from Sallie Mae that stated payments received after death. I assumed that the loans had be clear due to death. I received no other correspondance from Sallie Mae. On the anniversity of my son's death this April 2008, I received a telephone call from someone identifying as someone from Sallie Mae, asking me for my social security number. When I asked why, he said I had to pay $1500 or I would be in default for my loan. I explained the situation to the man and he said he would have to get the floor supervisor on the phone. The floor supervisor got on the phone and told me I had to give him a credit card number or my bank account number so I would not be in default on the loan. When I tried to explain the situation to him, he stated he didnot have to listen that I was a deadbeat and need to pay. Again I tried to reason with this man and he told me I should be ashame to let my son's memory to be that of a deadbeat. I told him that I did not do anything over the phone and to mail me whatever I need to look at. He stated I had to pay now and they did not deal with mail. At this point I am extremely upset and ask his name, he told me it was Brian. I ask for his last name and he told me he did not have to give a deadbeat his last name. I ask for a number to call back and he gave me a number and the hung up on me. I then pull my papers on the loan and call Sallie Mae back. When I gave the automated voice my account numbers it stated there were no loans with this number. When I finally got a person on the line, he again told me there were no loans with this account number. I had to give him my social number for him to find any information on me. After relaying the information to the man, he told me not to worry that if may have been fraud and that they would probably call again over the next 5 days, but not to pay anything. My family and I left for the weekend to remember the death of my son. On Saturday as we were eating, I received a phone call on my cell, from the collection department of Sallie Mae ( I had never given them my cell number) they preceeded to inform me that I was going to be in default on the note if I did not pay that day. I told them that I had talked to Sallie Mae the day before and what they had told me. At this point, my other son who is a 3rd year law student grab the phone and told them how many laws they had broken by harassing me and not informing me of the status of the loan be for now. They stated that it was not their intention to harass me and that they would mark that I would not pay. On Monday, we started receiving letters that I was in default. To this date, we are still trying to resolve this matter.

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  • Dd
      5th of May, 2008
    0 Votes

    I am sorry to hear your loss. However, the loan was in your name and you are responsible to pay for it. I agree. Do not give your account numbers or SSN over the phone. I think that a bank owns the loan and is just guranteed by the govt., ie, Sallie May Program. They may have sold the account to a collections agency after the default.

    Sad situation, but you are still responsible.

    I will give you an example. Say you bought a new car, signed a contract to pay $50, 000 over 5 years. The next day you are in an accident and the car is totaled. If you did not have insurance, you would still be responsible to pay off the loan. Even if you had insurance, the insurance may not cover the entire loan amount, for which you are still responsible.

    Did you son have life insurance? Maybe you can pay off the loan with that...Good luck,

  • Li
      5th of May, 2008
    0 Votes

    I am so sorry for your loss.

    I cannot believe the collection practices engaged in my Sallie Mae.

    They are sharks. And I thought I had it bad.

    I do hope you find someone to help you. There must be something you can do to at least be treated professionally, reasonably and rationally.

    Even if you had a huge amount of wealth and were able to pay off the loan without problems, that is beside the point. How they treated you was WRONG.

    Best wishes.

  • Jo
      27th of Oct, 2008
    0 Votes

    You need to find an attorney that is willing to take your case. It's not impossible. You will have to call many law offices untill you find one that will take it. Sallie Mae is a criminal organization. They routinely get away with "legalized" criminal activity. An increasing number of lawers are starting to realize that eventually there will be a break in Sallie Mae's "legal" protection. When that happens, thousands of lawyers will swarm to feed on the giant demon corpse. The wrongfull action suits will start to drop in the tens of thousands. DON'T GIVE UP! YOU ARE NOT THE ONLY VICTIMS OF THIS CRIMINAL ORGANIZATION.

    I recomend that anyone involved with Salie Mae take a look at these websites:

    One of them explains what happened to allow an altogther evil organization to gain so much power. The other one gives you an explaination of the things you can do if you are a victim of this blatently criminal organization. I wish I could say there's encouragment here, but there isn't. The best thing to do is NOT to use Sallie Mae. They are exempt from consumer protection laws and it is illegal for any other lending institute to compete with them. So once you have a loan with Sallie Mae, you can NEVER refinance with someone else. Just use credit cards to pay for school, then file bankruptcy. It is cheaper, faster and safer than using Sallie Mae. Or, be a resident of California where there is no tuition in their state schools.

  • Ba
      5th of Nov, 2008
    0 Votes

    Actually, you are more in the driver's seat than the other posters realize. From your account of the situation, they are in violation of the Fair Debts Collections Practices Act. Document evertime they call, what they say and how you respond. If you told them not to call you, they cannot call you. That does not mean the debt goes away, the telephone call does however.

    This law is federal, it is applicable in every state. I say that as we also had a bizarre experience with Sallie Mae and the collector tried to tell me that since it was in New Jersey, it did not apply. I do believe that New Jersey is still part of the United States.

    The collector harassed you. Both he and his supervisor caused fear by stating that they were going to ruin the name of your deceased child. They had a legal obligation to provide written documentation that indicated you were liable. You may have to request that in writing, but nonetheless, if they cannot provide it, you don't owe it. Also, they cannot demand that you pay over the phone or provide personal information.

    If they continue to contact you, write to the FTC. You can obtain info at Also, an attorney can aid you in filing suit. You will probalby find at that point the entire loan will just 'go away'. There are very high penalties for the type of harassment that this company like s to engage itself in.

    They actually called our family business 20 times in one hour. It was my nieces's debt, who was not in the office. Her mother told them she was not allowed to receive personal phone calls. That is when they became abusive. Sooner or later there will be headlines about this organization as their practices were outlawed over 10 years ago.

    Hang in there and get the attorney!!! You will win.
    BTW, I have 20 years experience in managing a credit department, I do understand the law.

  • Sh
      19th of Feb, 2009
    0 Votes

    I make my payments on time and they don't put the payments in the correct account and because
    of that they turned me into their Collection Dept, Watch out for them they wont tell you about any fees
    so if your payment is 180.00 it becomes 190.00.
    What they did to me was to more money than they were supposed to, instead of it being $185.00
    it became $195.00 + my $80.00 payment became $90.00, and they took the $195.00 a second time.
    They are money hungry thieves. I live in california and I am trying to find a way to nail these S.O.B 's.
    There was no reason for that.

  • Me
      30th of Jun, 2010
    0 Votes


    Direct non Indian line to the [censor]ers at sallie mae. Call and harass, call and [censor], call every 5 minutes if you can and waste their time which means waste their money.

    Don’t give out your soc # or name, as they will ask. Just call and calm as possible, let them know what [censor]ers they are or work for. When they hang up, call again and do the same thing. It won’t knock out you debt, but it feels [censor]ing good

  • Ww
      17th of Jan, 2011
    0 Votes

    I totally agree! My son has (had) a loan but was killed in a wreck 8-2010. I sent them a letter along with the death certificate. Now they keep calling my relatives and hounding them for information. I will not continue to fight with them. I will be happy to dish out the money for a lawyer. Sallie Mae is really screwing the students!!

  • Ji
      10th of Sep, 2013
    0 Votes

    I have not borrowed money from Sallie Mae, yet they continually call my business every morning and every evening. I have told them numerous times that I was assigned the phone number that they keep calling back in January, 2013, when we moved. The recording asks for a "Frank Rojas". This has been going on for a month at least. I get really upset with them because they won't stop calling. It ruins my mornings and evenings and it is affecting my work. I just got off the phone with Sallie Mae's Sr Collection Specialist Korey Keller (likely a stage name) and threatened to fly back to Indiana and beat the ### out of him if I get just one more call. It would be a lot cheaper than hiring an attorney. My blood pressure is through the roof.

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