Jpmorgan Chase Bank / Chase Student Loan Servicingstudent loan bait and switch

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My son's college stopped using sallie mae and went to usingcitibank and chase bank (jp morgan chase) for all their student and parent plus loans. our college financial aid admin. told us that he didn't qualify for any financial aid (free help). she also told us that he didn't qualify for any loans that he could take out himself even with a co-signer. the financial aid admin. said that she had tried for approval through citibank but got a denial. that was no surprise. my income to debt ratio is off right now because of needing two additional cars for two college son's. not to mention paying half the rent for an apartment while my son's go to college. I informed the fin. aid admin. that there was no way that I could make any payments on any loans right now. I also informed her it would be at least 6 to 8 months before anything would be paid off to even make it a possibility. she than told me about this special parent plus loan program that our government had set up to help those parents with college age children be able to send their child to college and defer the loan payments until after their child graduated college. this sounded a little to good to be true so our financial aid admin. gave me the toll free number to call chase and get more info. about this particular type of loan. once on the phone with a customer service representative, I asked her to explain how they could even consider approving someone for a loan when their income to debt ratio wasn't good. her reply was that their parent plus loans aren't based on the persons ability to repay the loan. I couldn't beleive what I had just heard. I told her that that was crazy for anyone to make a loan that way. I asked her specific questions pretaining to this particular parent plus loan with deferred payments inwhich our government had set up to help parents pay for their kids college education. when I asked her what the catch was for qualifying for this loan, her reply was, "no catch, this is a loan that everyone can get because the government has set these loans up to help parents with their kids college education because of the bad economic times." I asked her how the deferred payments worked and she stated that no payments would be scheduled until after my son graduated college. I asked about the interest rates on this loan thinking that they would be higher than a normal loan and her reply was 8.5% fixed during the life of the loan. I asked her what the normal time frame was for repaying the loan once my son graduated and her answer to this question was 5 to 10 years depending on the amount of the loan. I asked alot of question about this parent plus loan with deferred payments because I felt like something just wasn't right. after discussing this particular loan at legenth with this rep., I asked her to mail me the forms for this loan. after a week, I never received the forms so I called again and went through all the question again and got the same answers from a second chase customer serv. rep. this time, I requested the forms for this same parent plus loan with deferred payments to be faxed to me. once they finished printing off, I started reading them and found no mention of deferred loan payments for parent plus loans or any particular qualification rules/requirements.in turn, I called teri the college financial aid admin. and asked her if chase had provided them with any forms or other info. on these deferred payment loans and she said that it was the same as what I got. teri said that she would call chase and make sure that the forms were the right ones. as teri called chase, I called them myself once again. again we went through all the questions and included the questions about the form that I had gotten faxed to me eariler. making sure that I had the right form for the right loan before filling anything out. as I got off the phone with chase's customer serv. rep., teri called me back telling me that I had the right form. she said that the customer service rep. told her that the form I had was the right one and it was being used because they didn't have any special form for the parent plus loan with deferred payments because the government just opened up these loans for parents. this sounded right because I was told the same thing by another customer serv. rep. a day or two later, I went to the mail box an found that the forms inwhich were mailed to me had been delivered by the usps. teri and I didcussed this loan again prior to me filling out the form because I just didn't feel good about the forms they sent me. teri knew my reservations but stated that "their a lending institution and that a bank wouldn't do anything like what you are worried about." against my better judgement, I completed the form and mailed it back to chase with a letter specifically stating what loan I was applying for. chase disburssed the money to the college in the last part of june. around the latter part of july, I receive a payment boot with my first payment due aug.21. imagine my surprise. I called the college financial aid admin. and informed her of what I had gotten in the mail. she agreed with me, there should have been no payment book because of the deferred payments connected to the loan that I applied for. she suggested that I call chase so I did. it is then that I found out that to qualify for the parent plus loan with deferred payments, your money had to be dispurssed after july 1, and at least one parent had to be enrolled in school no less then part time. surprise! I got no notification that I didn't qualify for the loan with deferred payments and I wasn't given the option to turn down the standard parent plus loan (which I would have done). chase automatically switched my application from one particular parent plus loan with deferred payments to the standard parent plus loan without confirmation from me as to my acceptance of this switch. I think the law calls this procedure "bait and switch". they baited me by not disclosing the qualifications for the deferred payments loan and misrepresenting the forms inwhich they sent me even when specifically asked about them. they switched me to another loan without my approval and no notification of their act until a month after they had disbursed the payment to the college. this is a huge warning folks. stay away from jp morgan chase bank and any of their subsidiaries. it is my understanding that I wasn't the only one at this college who fell for this hook, line and sinker. I ask that if any of you have experienced this same bait and switch through jp morgan chase bank, please file a formal written complaint with the office of the comptroller of the currency, 1301 mckinney street, suite 3450, houston, tx 77010 ph. [protected]. lets be heard. college is expensive enough without banks taking advantage of parents who desire a college education for their children.

Responses

  • Pr
    Prev01 May 29, 2012

    Chase does do a bait and switch. They also process loans without an agreement. One year I had the school send the funds back and told Chase I would not be doing business with them for my daughter's education. I was already upset with them. It took almost a full term with the schools help, to get Chase to acknowledge the returned funds. The next year they sent funds without a loan agreement. I only found out when Sallie Mae told me that their funds were returned. It was too late to stop the funds. I called Chase and demanded I be sent the loan agreement that permitted them to issue funds. They sent me a complete file on another family with personal information and ID, from the 1980's. They have never sent me any documentation but they sent me payment books, they are denying any payments were made. I am amazed that no criminal charges have been filed against them, and that we have so little recourse unless we file a lawsuit against them. Please do not use Chase bank. The school decided the next year to do their own financing because so many funding problems.

    0 Votes
  • No
    NOCHASE Jul 30, 2011

    Chase student loans is horrible, they were dishonest with me about every step of the student loan process, and they call 6 times each day, even up to 8 oclock at night on Sundays, for as little as 30 dollars under payment. They will not work with you or give you any options, and when I spoke with a representative she literally told me I better "go get a job at McDonald's" to re-pay them. I have never had someone speak with me so rude, and even when my payments are on time they call and ask would i like to pay early, or am i available to increase the amount of my monthly payments. I wish I never ever chose them to do a loan with. They are truly harrassers, in every sense of the word. They charge youa $3 dollar fee to pay on the phone, and encourage you to pay through their website yet everytime I make a payment throught the website i get a call saying i have not paid. Then i have to go through the hassle of finding my confirmation e-mail, and then they just say "oh we're sorry."

    0 Votes
  • Lw
    LW0102 Nov 30, 2010

    Chase did me the same way upon graduation. All other student loan companies agreed to work with me where Chase down right refused! They then stated, make one payment then I could get the forbearance. Well, I made the payment (after borrowing from various people) only to be denied the forberance. I was then told I would have to make 12 payments in a row to be eligable for a forbearance. I was then harrassed by staff members. I wish I had never done business with this company!! I was still paying what I could via my account on-line but now my account have been closed out and I am no longer getting anything in the mail. They are trying to make it where I can't pay anything.

    0 Votes
  • Jj
    jjcpoc Oct 26, 2010

    I have also been screwed over by my college and CHASE. After 4 semesters of college my college no longer accepted CHASE. And knowing that I have been in student housing. The school never released any information to my email account and sent me a mail a few days during the scheduling of new classes and checking asking for more loans. When I finished signing up and etc. They asked me to contact the only fin. administrator who seemed to dislike me for some apparent reason. Every time I showed up in her office her smiles went away and her voice completely changes into an irritated voice and when another student enters her attitude changes back to the happiness she had before. Anyways she said that they no longer accepted CHASE and had to pick from another group of loan providers that they only accept from. And I was pretty much rejected by the only one that had deferred payment until i have graduated. The 3 or 4 were all payment plans every month while in school. And since I was not accepted I had to drop out of that school and attempt to transfer to a community college. I was accepted and all since it was a community college but the school had never sent my transcripts over. I payed them for several copies to send to my house as well as to the school i was applying to. I never received the transcripts in the mail so i wondered if the school had received it. And once I walked down to sign up for classes they said that they had not received the transcript yet and waiting. I went home frustrated and called the school. They didn't pick up the first couple of times after waiting half an hour each time. And finally when I got through they were in a rush to get me off the phone. I asked them why my transcripts have not been sent out yet and that I have not received any transcripts. (the school had this piece of paper they print out as a receipt that does not even work if they tried to scan it. The bar code across the paper is useless. Its just there to pretend that it is actually a receipt in of anything.) and so i had this useless paper that says that i paid the certain amount of money but it does not say for what. and i have several other similar receipts for the same amount for other things which made it useless since there is no proof that I have paid for that specific thing. since the bar code is there just to look pretty. Anyways so the lady on the phone kept saying that they could not find the paperwork and if she did she would send it that night and I would receive the transcripts in about a week or two. I waited that week or two and it was already cutting it close to registrations. (so basically I waited from the last day of school in December and had to wait two weeks for them to send it out and then called them again and they ask me to wait another one to two weeks max.) I waited but nothing happened. I called them again but no one picked up once again i was frustrated and annoyed. I called and they said they could not find the paper works. I paid them for a lousy service and have to pay them again if i want to enter another college. (They were unhappy when I decided the to leave the school because my money was what they were after not my education. And once the fin. administrator was all settled with me being accepted she started being a bit rude showing that she was irritated with me even though i never went to see her. The education quality of the school is extremely low in my opinion. There were only about two actual teachers that knew what they were doing. The others taught the class because they were placed in those classes randomly and did not know what they were doing. Others were doing it out of a slight hobby or wanted to test out a class they wanted to teach for fun which were required classes. WHICH WAS RIDICULOUS. And although this is true and has happened to several people probably just like me. I failed a class while putting in much effort to have him critique me harshly while several other students works were done right before class and critiqued less harshly and passes the class while I failed. which i had to take the second time and passes after a complaint about his favoring method and how students who were not favored were harshly critiqued and received a lower grade then students he favored who have done work before class or scribbled.) Anyways back to the CHASE Issue. So i told them about my situation and not being able to find a job that would hire me. they asked me to borrow money from my family and asked for family's bank account numbers and so on which i had to say no to since they are not here. and they seemed to be frustrated and said that they could not go lower then 600. and anything below would not make a dent in my payment and i will still have late fees to pay and it will all add up. Now no matter how many times i explain to them the situation they call me the next day asking the same questions over and over and over and over and over and over. I explain it to them over and over and over. I am not even sure if they did the "BAIT and "SWITCH" on me that you have mentioned. (I also wonder if the financial aid rep took the 5k that was supposed to be sent back to two different loan providers for sending me extra cash. When I was about to remove it to send it back to the lenders my Fin. Administrator said that she would take care of it and for me not to worry about it.) HM (I can't seem to trust CHASE or the school that sucked so bad with horrible workers that were rude and unprofessional. Most of the workers there were rude while a hand few were polite. They put on an act until you have been there then their true color shows over time. yet it repeats itself when a new semester starts.)

    0 Votes
  • Ba
    BANCHASESTUDENTLOAN Mar 18, 2010

    My sister went to school to become a RN to better her and her childern's life. I co-signed for her student loans, Chase, Sallie Mae and AES . She is studying for her boards, and is working 30 hours a week. Making enough monies to pay rent, utilities, food and leaving little nothing till the next paycheck. Upon receiving the first round of statement(s) for her student loans she took the professional, responsible steps to apply for forbearance. Sallie Mae and AES where approachable, and accommodating with paperwork, questions, etc. She qualified for the forbearance with Sallie Mae and AES without apprehension. Now let's talk CHASE?!?!?! Each time a customer service rep called my sister she would explain the situation to them, her plead for their help went on deaf ears. She filled out all the required forbearance paperwork, each time upon submittal she was denied. HOW can they denie when she is not working yet in her field nor monies to do so? ALL she was asking of them is time to take boards and to be working. Does this company not have a soul, it is not like my sister is the only one in the country without a job?!?!? Then due to me being the co-signer started to call me. I would ask them if she had options, that at this time she can not afford the monthly payments? The rep. was quick to say you co-signed so why are you not paying on the loan when she is not able to? I told her that this was my sisters responsibility and she has made multiply attempts to defer the loan. In a nut shell she said not their problem. I questioned how was it that Sallie Mae and AES other companies whom provide student loans where more than kind to assist? They are goverment funded companies so they have more latitude with approve of forbearance to a student loan. They have called me at work on two occasions when I told them to call my sister direct or my cell, NOT my work! One today, I asked the rep. if they did not show a payment pending on her account? She told me no? Advised her that I would contact my sister to call them back and did so. My sister spoke w. a supervisor that she had made a payment to the loan and had a conf # of it. He did verify that he showed this too. So WHY was the rep that works for Chase call me telling me otherwise? The supervisor was obliging pre qualify her for forbearance(which I will not believe that till I receive paperwork?)! SUCH B>S>, Chase a domestic company offering student loans should be ashamed of themselves and how they act toward college grads who are struggling! I told my sister once she is working as a RN, she needs to consolidate her loans with a reputable company and NEVER to use CHASE or any company affiliatedwith them!

    0 Votes
  • My
    Myrubi04 Feb 13, 2010

    I am going through the same ordeal as everyone else. I graduated with my Bachelors degree and haven't found a job. I submitted forbearance paperwork to all my student loan lenders. I was approved by everyone except Chase. I called and explained to them that I am unemployed and I just need a little time to get back on my feet. They said pay my first payment and they would then be able to process my paperwork for a forbearance. I did, which I had to borrow money from my sister and her family. I re-submitted the paperwork and got a letter in the mail 2 weeks latter stating that they could not approve me. I callled and they said I can't show proof that I can pay so they can't approve me. I explained to them once I get a job I will be able to pay. I asked them is that not what a forbearance is for. To give the newly graduated student time to get on their feet. They said no. It only brings your account current if you are late but, you still have to pay the payment each month. I asked them what other options do I have, I have no income to pay them. They told me I had no options, I better borrow more money from my sister or sell something in order to pay them. My family and I have banked with Chase for many years. This was the only reason I took this loan from them. We have always been very happy with Chase. The student loan section of the company has ruined my trust in them. I will never get another loan, mortgage, credit card, or anything else through them. BEWARE STUDENTS OF GETTING A LOAN THROUGH CHASE STUDENT LENDING!!!

    0 Votes
  • Me
    Meygan1228 Dec 11, 2009

    They are all for lending you money, but try to put the loan in deferment & they give you the run around & while it takes you MONTHS for them to receive all of your paperwork that you have been sending over & over they report your non-payment to the credit bureau.
    They also sold my loan & never notified me which is against the law. I only found out because I received a bill from a new company, called them, & they told me they purchased it from Chase! All this only to find out Chase didn't sell the loan in it's entirety; they retained part which I had to go back & get into deferment!
    When I tried to get it straightened out, they refused to let me speak to a supervisor insisting one would call me back - never happened.
    My other companies processed my deferals with no problem, now I can't get a mortgage because Chase wouldn't fix their mistakes!

    0 Votes
  • Ky
    kyle.vm Aug 03, 2009

    I have had a similar experience with Chase, albeit about a seperate issue. I have a Chase student loan that I am paying back from my undergraduate education. Before I enrolled in graduate school, I contacted Chase to receive information about an in-school deferment for the loan. On multiple occassions I was told that if I was at least a part-time student at an accredited university, I would receive an in-school deferment.

    As soon as I started my graduate program I completed the requisite forms and had my school certify them. I sent them to Chase and waited several weeks without hearing anything. I contacted them and spoke with a representative who told me it takes time to process and to call back later. The next time I called, I was told by the representative that the type of loan I had was ineligible. I asked to speak with a manager as I had been told on multiple occassions previously that I would receive this deferment. The manager was "busy" so I gave the agent my phone number for him/her to call me back when they were available. Four days went by and no one called. I never received so much as an apology for all the misinformation I was given. I am now in graduate school and faced with student-loan payments that I can't make because Chase lied to me.

    Since then I have spoken with more Chase representatives who have assured me that I am eligible but never sent in the correct forms. However I have also spoken with agents who dispute that and say I am still ineligible. This is extremely frustrating. Every once in awhile you will get a kind agent, but for the most part, the people I speak with are rude, unhelpful, and give false information. It is not surprising to see that they have an F rating at the Better Business Bureau

    AVOID THIS COMPANY!!

    0 Votes
  • Ga
    Gary D Oct 23, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I too was ignorant to the fact that I took out a parent plus loan of apprx. $28, 000 for 1 year of college for my son. I was told that no money was to be paid until 6 months after graduation and long and behold "bam" I kept getting noticed of payment due $350.00 a month. I said to myself "WTF" I can not pay this now!! They school mislead me. The loan is from the US Dept of Education and now the 1st time in my 53 yrs of Life ..I have bad credit. Does anyone know how I can get out of this bogus loan? Pls pls advise
    10-22-08 see address email below:
    Gary ...my email is [email protected]

    0 Votes
  • Ch
    Christine Oct 17, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I work in a financial aid office at a private college and have just met with our Chase Bank rep. He told me that the highest possible rate for a student who applies for a Chase Select loan without a cosigner is prime plus 6%. If the student has a cosigner it could go as high as prime plus 5.5%. Are you sure about the rate that he was given? Was it called the Chase Select loan? They do have other private education loans as well. And it is true that 99.9% of private loans have variable rates. I did have a student who found a private loan through her own state's guarantee agency that had a fixed rate. You could always have him get another private loan elsewhere and have the Chase one returned. The financial aid office at his college can help him with this but they will most likely require that the new funds be there first before they will return Chase's funds.

    0 Votes
  • Ch
    Christine Oct 17, 2008
    This comment was posted by
    a verified customer
    Verified customer

    There are NO kickback for financial aid offices, at least most of them anyways. We used to get cookies or candies at Christmas and post-its and pens when they would visit but that was all. No Financial incentive at all. Schools will allow you to go to any lender you want but do have a recommended list that they research to have the best incentives for the students. It would take forever to process these loans if every one chose different lenders.

    0 Votes
  • Ch
    Christine Oct 17, 2008
    This comment was posted by
    a verified customer
    Verified customer

    Melody,

    I work in a financial aid office at a private college and I suggest that you have the school's financial aid office contact Chase directly. Usually the school's bank rep can fix things like this to avoid the school from using someone else in the future. Good luck!

    0 Votes
  • Al
    Alexandria Dejesus Sep 27, 2008
    This comment was posted by
    a verified customer
    Verified customer

    YOU CANNOT IMAGINE HOW WE HAVE SUFFERED AT THE HANDS OF THESE UNETHICAL COMPANIES.
    I WAS STEERED TO ONLY USE CHASE AND CITY BANK FOR MY LOANS. I HAD NO IDEA THAT KICK BACKS TO FINANACIAL AID OFFICERS ARE INVOLVED.
    I ONLY FOUND THIS OUT LAST YEAR WHEN ATTORNEY GENERAL COUMO' OPENED AN INVESTIGATION INTO FRAUDELNT STUDENT LOAN ACTIVITY.
    THEY NOT ONLY CHEAT YOU AS A STUDENT BY LIMITING YOU TO THESE LENDERS, HOWEVER, IF ANYTHING HAPPENS TO YOU SUCH AS WHAT HAPPENED TO ME WHEN MY SPOUSE BECAME SERIOUSLY ILL-THEY HIRED CRIMINALS TO COLLECT ON THESE LOANS USING THE BRUTAL OF METHODS. MY SPOUSE BECAME SO ILL, WAS HOSPITALIZED AND HAS NOT RECOVERED.
    THESE COLLECTORS CALLED OUR CHILDREN'S HOMES, THEIR IN-LAW HOMES, FRIENDS, AND THEIR EMPLOYERS.
    WRITE THE FTC!!
    TELL THEM OF YOUR EXPERIENCES THEY WILL INVESTIGATE! AND HELP YOU.

    0 Votes

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