I had school loans during undergrad and medical school. In June 2005, I send in an application to a company to consolidate my loans to lock in low interest rates before July 1, 2005. It takes them months to process this loan but finally they send me a "revision application" showing the loans I requested to be consolidated. The revision is wrong and I correct it and send it back. They proceed to ignore my corrections and consolidate part of my loans instead of all of them. I called them about this and they said I should fax in an add loan form. I ask if this would affect my interest rate and they say no, it will not since I am within 180 days of the loan disbursement and because they essentially failed to consolidate the loan as I requested. I do this and they say to give them 6 weeks to add the loan. 6 weeks later, this is not done. I call again and they say they cant find the add loan request so I should send another one. So I do. The same cycle repeats and the outstanding loan continues to have an interest rate thats climbing higher and higher. When I look at my interest rates with this consolidating company, instead of 2.8% as promised, it is now 3.88%. They say this is because the interest rate of my outstanding loans have gone up (even though this is their fault for not consolidating my loans in the first place and also for taking so long to consolidated the outstanding loan). I get another bill from the company with my outstanding loan (the interest has gone even higher) and call my consolidating company. They tell me they sent payment and that it was returned. They state further that if I wanted them to send another request to consolidate, it would raise my interest rates even higher! How can two companies botch their job so badly? They continue to refuse to consolidate my loans at the rate they promised. What can I do? What legal action should I take?
State: Texas
Incomplete Loan Consolidation
Re: Incomplete Loan Consolidation
Linear Mode
