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

By on June 15, 2017

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.”

READ  Equitable Acceptance Corporation - CFPB Complaint

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 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.

13 Comments

  1. LibertyFelix

    November 26, 2017 at 2:56 pm

    I’m just glad they only got me for a ping point on my credit score.
    I felt bad to have given them as much personal info as I did.

  2. David Ufer

    October 31, 2017 at 3:18 pm

    I too was fooled by equitable acceptance. They pulled a bait and switch with me. There representative promised for there fee of 49.00 a month my loan payment would be reduced and no interest for three years would be charged to my account. In addition the consolidation was at 7.5% which I assumed would start. At the end of the three years of no interest. At the time I wondered why such a high rate. My loan was given to navient and they indicated they don’t use third party companies to get there loans. If your going to charge money to consolidate a loan then why in the hell would you charge the same interest I’m already paying on my current consolidation. I now owe more then I did with my old loan. What a scam job. I checked to day after making 3 payments to equitable Acceptance Corporation and owe more then I did when I started to pay them. Wtf!, I’m actually looking into filing a complaint with the attorney General in the state where there corporate resides. I have a law degree and may be looking into a class action about the lack of transparency and the failure to notify the consumer of unfair practices.

  3. Miranda N Jacobs

    July 24, 2017 at 10:08 pm

    This is my exact situation. Fedloan shows no payment made, and I am also going back to school, and I have found my student loans have not been touched for 1.5 years. I attempted to log into FedLoan tonight and I couldn’t log in because the credentials were off, it was set up with a bogus email. So I called and I spoke to Fedloan tonight and discovered my loans were consolidated with them around the same time started with EA. I did not set up my loans with FedLoans. I have over the last two months called EA and Student Advocates and they use an answering service… and don’t return my calls or emails. This week they started to call my phone back to back to back because they can’t get into my fafsa account. I ask why they need access to my fafsa, and their only response is “you hired us to do a service… “. I ask them to cancel my account, no response. I just canceled the credit card associated, I am sure they will be blowing up my phone here soon.

    But I logged into Fedloan and what I owe has actually gone up, not down and I was late on payment and way overdue… I do not understand how I got myself into this. I am paying for a service $39.99 a month, and EA website shows that it is going toward interest, but FedLoans website shows no payment since they consolidated my loans 1.5 years ago.

    I talked to FedLoan and they said that EA and SA were a scam. Now I don’t know how to untangle myself.

  4. Laura E Parrish

    July 14, 2017 at 9:50 am

    I used Student Advocates to consolidate my Student loans and they in turn sold my account to Equitable Acceptance. How do I get out of paying Equitable Acceptance with out it hurting my credit?

    • Steve Rhode

      July 14, 2017 at 10:22 am

      You can cancel the service. I’m not aware Equitable reports to the credit bureaus over a service agreement.

      • Cerena Reid-Maynard

        August 9, 2017 at 9:14 am

        Its not that easy. If it was don’t you think everyone that they have scammed would have done that and would not be on here complaining and agonizing over the mistake they’ve made by allowing a scam company to manipulate them in a sneaky manner. I’m one of many who have gotten scammed by them. I made attempts to “cancel the service.” However, by the time you figure out that you have “just been punked,” the cancel service period has passed.

        • Steve Rhode

          August 10, 2017 at 10:32 am

        • Kim

          August 29, 2017 at 2:33 pm

          Oh my goodness! This is currently the case for me with a company called Student Advisors Temecula. I’m trying to cancel my service and they keep saying “Unfortunately the service we have done cannot be canceled. But when I call Equitable Acceptance they say “your status is still showing in progress” I asked what does that mean? EA says that Student Advisors Temecula is still working on it. So really they have not done anything yet. I spoke with someone at SAT and the guy says they still have 28 days to complete the process as of my 60 day period. I think my 60 day period has been up. I’m still trying to end this but it’s been frustrating.. I still can not believe I was tricked!

          • Tammy

            October 30, 2017 at 9:32 pm

            I have been paying Equitable Acceptance for 4 months now and student advisors just sent a form to Navient.to reduce my payments. I started working with student advisors in April. Navient just sent me a bill and my monthly payment is larger than it was before I got with Student Advisors. Navient said they can work with me personally but I am not stuck on paying Equitable Acceptance 1345.00 at 49 per month at 27% interest. I have been so screwed by this company. Get out as soon as you can. Do not sign anything!! Do not give them any bank account numbers. I don’t know where to turn to get help right now.

  5. Olivia Scalise

    June 23, 2017 at 2:00 am

    Hello Steve, I signed up with a student loan company who claimed to be working for the government and were trying to get people signed up for a consolidation program. It all sounded really straight forward and familiar to the plans I had heard about being offered by the government. I was a little confused to start getting a bill from EA but the amount of the bill was the amount my “student loan case manager Santiago” had told me I would be paying toward my loan debt every month. I have recently decided to go back to school for my masters and after talking to my new classmates I was made aware that I should be making payments to a company with a federal name, I think fed loans? This discussion was a few days ago and got me thinking, so I looked up EA and found out that the same thing that happened to me happened to A LOT of other people. I don’t even know what to do at this point, I remember specific details of the conversations I had with santiago when he got me all setup. This is all so crazy to me because I have been paying this company for 2.5 years now and my student loan had not been touched. I would be interested in speaking with you on the phone so I can tell you the explanations santiago gave me when I questioned things that seemed strange to me. He also went as far as to ask me to recruit my friends who hadn’t signed up because there was some deadline coming up that was going to end this repayment program aided by the government.

    • Steve Rhode

      June 23, 2017 at 9:48 am

      Sounds like you got a aggressive sales pitch. There is nothing scheduled to change that is going to end any repayment program. I’d love to know which program they claimed would end.

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