Legal Question in Consumer Law in Texas

Private Student Loan

I got 2 private student loans $10k for

each from a very well-known bank that

had a title for their special education

loan program and my dad co-signed.

They offered a 6.5% rate with one year

of forbearance to pay it off. When it was

time to pay them I called the bank

because I haven't received a bill. They

said XXX bought the loan and to call

them. Well we never knew it and

thought the letters from XXX were junk

mail to consolidate. XXX raised my fees,

interest rate to 11%, accured interest

and charged late fees because their 1

year forbearance required another

application at the 6th month period.

When we signed up for the loan with the

bank they said it wouldn't be sold and

what we signed up for was what we

were getting. How is this legal and not

unconstitutional? I wanted a loan from

the bank and their program that was

advertised and ended up with another

company whom I never would have

done business with. I can't believe their

is no consumer protection for this,

especially someone trying to educate

themselves. Instead getting crooked.


Asked on 12/05/06, 4:51 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Private Student Loan

Welcome to the world of commercial paper. Loan instruments can be bought and sold. So long as you follow the terms of the note, rates, etc. remain the same. Unfortunately you disregarded the notices the buyer of the paper sent to you. You're on the hook for it.

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Answered on 12/06/06, 6:26 pm


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