Student Loan Related

How Did I Wind Up Owing Equitable Acceptance Corporation After Getting Student Loan Help?

Written by Steve Rhode

It seems more people are wondering how in the world they wound up getting chased for money from a company called Equitable Acceptance Corporation after they signed up for help with their student loans. If you are one of those people, I’d like to hear about your experience and which student loan assistance company you signed up with.

The BBB is reporting “BBB has noted a pattern of complaints filed against the company. After signing up for student loan consolidation services with third parties, complainants state they are confused as to how they wind up dealing with Equitable Acceptance Corporation. Equitable Acceptance Corporation purchases contracts from these third party companies and attempts to collect on payments due for services rendered. BBB brought this pattern of complaints to the attention of Equitable Acceptance Corporation. The company acknowledged issues in communicating with students and stated they are trying to fine-tune the transition process from when the loan consolidation services are utilized to when Equitable Acceptance takes over the contract. BBB also expressed concern about some of the third party loan consolidation services the company is working with, as some have F ratings with BBBs out of state. Equitable Acceptance Corporation pledged to work with companies they deal with to urge them to address any outstanding issues with BBB. However, the volume of complaints filed against the business has not decreased.” – Source

It appears the student loan assistance companies are “factoring” or selling their agreements for student loan assistance service to Equitable Acceptance Corporation so they don’t have to wait to get paid by the consumer. The consumer then owes Equitable Acceptance Corporation for the fees for the service they purchased. It is reported the interest rate for this financing is allegedly 21%.

Judging by the BBB complaints posted, it would appear consumers are confused about the role of Equitable Acceptance Corporation. For example, a consumer complained, “Equitable Acceptance misrepresented themselves as a government entity to repay my student loan. I was never told that they were a 3rd party collection agency or that they were buying my loans. I only learned this when the federal government sent me another bill. I called and told them I was repaying thru Equitable Acceptance. They had never heard of them and suggested that I place a stop payment for their collection and repay directly to the government instead of this 3rd party. I was so angry! They misled me. I wish I had done more research but I had not heard of this scam for consolidation and their representative never once explained any of it to me. I just assumed it was repayment to the government. Now they are HARRASSING me constantly. They are a total SCAM!!!!!!!!!! If I could give them a -5 stars I would. This should be illegal.”

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Equitable Acceptance Corporation responded, “We purchased a contract from Student Advocates (dealer) on October 25, 2016 for the customer to finance the document preparation fee that dealer charged to work with the Department of Education to refinance or consolidate student loans. The customer and dealer entered into a written agreement, which Equitable Acceptance was not involved and clearly states the dealer was offering a service to navigate the student loan relief bureaucracy. We have a recorded verification call done with the customer prior to funding this loan. The customer also paid three payments to us prior to a payment being stopped in March of 2017. Equitable never misrepresented themselves since we did not contact the customer about her student loans, the dealer had contacted her and explained Equitable’s roll in this process. Had the customer read the documents and listened to what the dealer was proposing to do, she would have understood the nature and benefit to the program she was signing up for. If there was concern about what was being done, that should have been brought up to the dealer prior to them sending us the loan documents to purchase. We have charged this account off for non-payment.” – Source




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

26 Comments

    • I too was scammed by EA and SA. Until reading this thread, I didn’t realize I was paying interest for EA which was not stated to me. I was to pay EA $49 for 24 months is what they told me. Wrong!! It’s $49 for 34 months due to the interest they tack on which was NOT discussed at all!! I’ve gone to EA online and stopped the automatic draft and will contact my bank as well to ensure they are blocked. There is no way to “cancel” on the EA website, and you get no where with the EA reps via phone. I will take the hit on my credit if it happens. EA and SA misrepresent themselves as “government” which is horrible and downright despicable!! I’ve also changed my password on the FedLoan website and FAFSA website so EA can no longer access them. Also, when speaking to FedLoan Servicing, I verified that they ARE a government agency. I hope this helps. Also don’t feel back for being duped, these liars are very good.

    • Yes, me too. I have been scamed. I thought I was paying toward my loan and turns out nothing is being done for my loans. I went to try and buy a home and was not able to because my studenet loans were outstanding. Someone please help. EM

    • Everyone out there dealing with EA. I too was scammed for a little over a year. I spoke to nelnet directly and they told me EA could not hurt your credit because third part agreements can’t be claimed if unpaid. Luckily my payments were being forwarded to fedloan and I did have to pay a #39.00 fee every month. Nelnet did me a huge favor and got my payments down $100 cheaper than EA did. I also had to change my bank account number so the auto debit wouldn’t be drawn by EQ. I have received many phone calls and emails from EA and I told them I wasn’t paying and I have a new agreement with Nelnet. The phone calls and emails stopped and I am free of their grasp. Please contact Nelnet ASAP and change your account number with your bank. I now have to change all of my direct deposit and auto pay bills. Good luck and screw EQ and don’t worry about your credit score.

    • i have read thru the comments and it sounds just like what happened to me, i tried to get out of the mess and couldnt. this scam is so unfair and has affected many people

    • I was scammed as well…I knew something was wrong when Equitable Acceptance showed up on my credit report as a credit card and found out through the company that has my student loans that they havn’t heard of them!!!!! Now my credit is bombing and its ruining my life!!! I tried to contact EA to be shuffled around on the phone and told that I AGREED TO THE CONTRACT. HELP!!!!
      Its aweful and I refuse to pay it!

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