My question involves collection proceedings in the State of:
Recently, my wife and I were hit with the harsh reality that a student loan was taken out under her name as a co-signer...by her own father.
My question is, what can we do?
We've already filed for a loss & prevention and the end results were that her signature too closely matches or resembles the signature on their documents stating her as a co-signer.
Now, the only way we can think of this happening was at the time when my wife PLANNED on attending [a particular college], but never did. She went through pretty much all the steps, filled out some paperwork (she was letting the dad handle everything as she didn't know anything about the whole loan process). Eventually, she decided not to go and her and her father's relationship got strained.
Not too long after her father passes away, we stat receiving letters from Sallie Mae to pay up! We of course do not have $20,000 nor should we have to pay since the loan was never suppose to have been taken out.
My wife called the school and canceled everything in advance, notifying the school to not let anything go through and to make sure she wasn't charged anything.
My wife keeps receiving phone calls trying to get us to pay.
We hired a lawyer to mail out a letter, but on the last phone call my wife got, they read back the letter to her and it sounded like a 10 year old wrote it. We'll be asking for a copy of the letter tomorrow to review it and possibly try and get our money back.
In essence, they refer to my wife as Mrs. and Ms. and her last name goes from her real last name to something completely different.
Does anybody have any advice or a direction they can send us in? we're desparate. We have 2 children and I myself am dealing with 2 of my own student loans (that are actually mine). How can we get Sallie Mae off our backs?
We have papers with her fathers handwritting stating that he spoke to a rep. and was told that "she needs to be 18 to qualify for the loan". The school I'm sure has their records of her NEVER attending that school.
HOW was that loan even granted when my wife told the school in advance "I'm not attending"? Why do should we pay for the systems flaws?
Please, what can we do? We're in fear of them garnishing our bank account and my paychecks (both of ours). The loan is ready to go into default within the next two weeks or so....
If we close our current bank account and I re-open with just my name and not hers, will they still garnish my bank account since we are married and live in CA? Or will our money be safe without my wife's name on the bank account?
Again, please-- any options? Any confusion on my behalf? We need help!