About 2 weeks ago, I opened my email and found information regarding how I could reduce my student loan debt.
I called the toll free number and was put in touch with National Student Servicing in Irvine California. I talked to a person by the name of Cory Perry. He stated to me that the government would buy my student loan, I would pay a low monthly payment and there would be no interest charges. I followed his instructions and forbearance paperwork was submitted to Sallie Mae, the student loan company I was making payments to.
I even saw a commercial on TV making the same claims that Cory was telling me.
Within an hour of conversation, I received in my email inbox the electronically generated forms with an electronic signature stating that I would make 3 payments of $199 for June, July and August automatically debited from my checking account.
After that my payments would be between $130 and $140 a month. I asked Cory if this was a promissory note and he said yes. So I thought that this company was a student loan debt servicing center and I would have my student loan restructured with the lower payments.
Last week I receive paper work from FedLoan Servicing stating a repayment plan. I was shocked to see that the repayment plan was nothing I agreed to with Cory over the phone.
So I called FedLoan and talked to a person named Jenny, and conveyed to her what I was told by National Student Servicing. After listening to her, that is when I realized that I was scammed. I have another student loan that is being serviced through them, and they have been very up front by providing statements and explanations regarding how much is owed, the interest and the payments.
Consumer Action Taken:
After talking with FedLoan, I tried to find National Student Servicing on the web. I did find a company with that name, in Irvine California. There was a toll-free number to call. The call went through to a menu. When the recording got to telling what number to push to talk to a customer service representative, the call was dropped; no answer.
I have been trying to find the piece of paper I was writing information about the person I was talking to, and finally found it today. The name of the csr I was talking to was Cory Perry (not sure that is his real name) The phone number I have is 949-381-2464. I know you may have heard this before, but after talking to Jenny at FedLoan, I felt sick to my stomach.
I sent an email to the company I thought I was dealing with to cancel my account with them and not to debit any more money from my checking account. As of today, I have heard nothing.
Date This Problem Happened: July 9, 2014
State You Live in: Pennsylvania
Age Range: 51-65
Total Amount of Fee Paid: $199
Company Name: National Student Servicing
7535 Irvine Center Drive
Irvine, CA 92618
Company Telephone Number: 855-677-6405
Website of Company: nationalstudentservicing.com
Client Supplied Information
Federal Student Loan Consolidation Agreement
This Service Agreement is made and entered into this 11th of July 2014, by and between National BPO, LLC (NSS), and [ ], hereinafter referred to as student (“Student”) residing at [ ].
WHEREAS NSS business is providing Document Processing Services to individuals with federal student loans and seeking to consolidate the loans through programs offered by the Department of Education (DOE); and
WHEREAS Student requests NSS to perform in good faith, the following services, (“the Services”): (a) Research potential DOE programs that are/or may be available to Student, (b) Present results to the Student with available options, (c) Compile and process all Students’ required DOE Consolidation paperwork selected from the options provided to Student, and (d) Submit completed Consolidation paperwork to the DOE.
*Student also acknowledges that they have been advised that any and all programs offered are free, and they have the ability to complete all such program requirements for themselves.
*NSS is not affiliated, partnered with or associated with the DOE (Department of Education) in any way shape or form. NSS is a third-party document processing company that specializes in Federal Student Loan Consolidations, and Rehabilitations for such students.
In consideration of the foregoing and every term, covenant and condition hereafter set forth, NSS and Student do hereby understand, covenant and agree to the following:
- Provide Complete and Truthful Information. Student expressly represents and warrants that he/she/they will at all times, provide NSS with information that is complete, accurate and true to the best of their knowledge and belief.
- Performance of Services. Information from Student and payment for the Services as provided herein, NSS shall analyze Students’ information, including annual income and perform any necessary research at sole discretion; reasonable or advisable in carrying out its duty to service the student’s, student consolidation. Outside
- No Legal or Tax Advice: The Student acknowledges that the NSS is not a law firm, and that NO LEGAL OR TAX ADVICE CAN OR WILL BE PROVIDED UNDER THIS AGREEMENT.
- Fees: Student agrees to pay NSS a Consolidation Processing fee totaling $599.00 and thereafter, a monthly maintenance and administration fee payment of $28.80. National Student Servicing cannot guarantee a specific payment amount. Monthly reoccurring fees run concurrently with the rehabilitation payment schedule arranged between collection agency and borrower. After the rehabilitation is complete, loans are then released to the department of education at which time the consolidation can be completed. NSS Fees will only be earned after Student is approved for a program through DOE. If Student is not approved for a program through DOE, NSS will reimburse 100% of any Students’ Fees collected.
- Breach of Contract: In the event that this contract is breached in any manner, including but not limited to the Student failing to pay the agreed upon fee payment. NSS reserves the right to discontinue Services for Student. In a timely manner, NSS will respond to all Student requests to terminate the Program. Any request to terminate the Program must be in writing mailed to National Student Servicing 7535 Irvine Center Drive Suite #200 Irvine, CA 92618
Money Back Guarantee
Limited Money Back Guarantee. National BPO guarantees that Client will receive a Federal Student Loan Consolidation, or a repayment plan using current lenders, through the Department of Education subject to the following conditions:
(1) student loans that Client presents to National BPO are original debts, and have not been previously consolidated or had their terms or amounts previously adjusted;
(2) Client fully cooperates, is honest and timely in providing all information requested by National BPO and Department of Education; and/or
(3) Client does not possess a characteristic that pursuant to Department of Education rules would disqualify Client from receiving a consolidation. If a Client is not approved for a Federal
Student Loan Consolidation, or a repayment plan using current lenders, through the Department of Education after reasonable efforts by the parties, then National BPO will reimburse the Consolidation Fee Payment (payment made to National BPO in Section 3, above). All refund requests must be made, in writing, to National BPO 1 League #61089 Irvine, CA 92602 within 90 days of any denial by the Department of Education.
Within 24-hours of an executed signed contract, the CLIENT may cancel this contract with or without reason. After 24 hours has passed from the executed contract date there will be NO refunds. 24 hour cancellation period (B&P 6410(e)). B&P = Business and Professions Code
If any of the CLIENT’S Federal Student Loans are in default; and or the CLIENT is being garnished by a LENDER, NSS cannot stop a garnishment already in progress, and makes no guarantee to do so. NSS will provide CLIENT the option to rehabilitate said loans. Once the rehabilitation process is complete, NSS will immediately Consolidate the CLIENTS Federal Student Loans through the Department of Education.
Once Student’s paperwork is received the processing process will begin. All services performed by NSS are controlled, and time managed to expedite the consolidation process. Be advised that Federal Student Loans completed by NSS rely on respective lender(s) promptness in their administration of services; and therefore, cannot be held liable for any delay in completing a consolidation. The Average time to complete a Federal Student Loan Consolidation through DOE takes approximately ninety (90) days.
I hereby authorize NSS to verify my present employment earning records, bank accounts, stock holdings, and any other asset balances that are needed to process my Federal Student Loan Consolidation. I further authorize NSS to order a consumer credit report and verify other credit information, including past and present mortgage and landlord references. It is understood that a copy of this form will also serve as authorization. The information NSS obtains is only to be used in the processing of my Application for a Federal Student Loan Consolidation.
Arbitration and Choice of Law: This Agreement shall be governed by the laws of the State of California, and any Conflict of Law provisions thereunder. In the event of any controversy, claim, or dispute between the parties arising out of, or relating to this Agreement, the parties agree to resolve all issues solely through the use of binding Arbitration; governed by the rules of the American Arbitration Association (“AAA”). Any such Arbitration shall take place in Santa Ana, California. The arbitrator shall be neutral, independent, and shall comply with the AAA code of ethics. The arbitrator or arbitration panel shall have the exclusive and sole authority to resolve any dispute relating to the interpretation, applicability, enforceability, conscionability or formation of this Agreement and of this arbitration requirement. The award rendered by the Arbitrator shall be final; binding on all parties; and not challengeable or subject to vacation or modification. Judgment on the award made by the Arbitrator may be entered into any court having jurisdiction over the parties. If either party fails to comply with the Arbitrator’s award, the injured party may petition the Circuit Court for enforcement. The parties further agree that either party may bring claims against the other only in his/her, or its individual capacity and not as a Plaintiff or class member in any purported class action or representative proceeding. Further, the parties agree that the Arbitrator may not consolidate proceedings of more than one person’s claims, and may not otherwise preside over any form of representative or class proceeding. The parties shall share the cost of Arbitration, including attorneys’ fees, equally. In the event that a party fails to proceed with Arbitration, unsuccessfully challenges the Arbitrator’s award, or fails to comply with the Arbitrator’s award, the other party shall be entitled to costs of suit, including reasonable attorneys’ fees for having to compel Arbitration or defend or enforce the award. This section and the arbitration requirement shall survive termination.
Entire Agreement, Severability, and Survival: This contract shall constitute the entire Agreement between NSS and the Student relating to the Document Processing Services provided hereunder. No additional outside written or verbal terms, obligations, covenants, representations, statements, or conditions, shall be deemed material to, or part of, this Agreement. No variations or modifications of this shall be deemed valid unless in writing and signed by both parties. This section shall survive the termination of this Agreement by either party. Student agrees to pay NSS a Processing Service fee totaling: $599.00 Student agrees to pay NSS a Monthly Maintenance & Servicing fee of: $28.80 as referred to in section 4
Legal Authorization Form
This form will serve to acknowledge that the below Student Loan borrower has authorized our company, National BPO LLC (NSS) to act on their behalf to consolidate their Federal Student Loans in accordance with the DOE. CLIENT has been advised that once approved for the Federal Student Loan Consolidation, the CLIENT will receive a sixty (60) day furlough before payments will start. If you have any questions regarding this Federal Student Loan Consolidation Program, please contact your Student Loan Consolidation Specialist at (855) 677-6405
BY SIGNING BELOW, I HEREBY ACKNOWLEDGE THAT I HAVE NOT BEEN ADVISED BY NSS, ANY OF ITS AGENTS, AND/OR AFFILIATES TO FOREGO A STUDENT LOAN PAYMENT IN EXCHANGE FOR ANY GOOD FAITH PAYMENT AND FEDERAL STUDENT LOAN CONSOLIDATION PROGRAM. DURING THIS PROCESS, CLIENT IS RESPONSIBLE FOR MAKING HIS OR HER PAYMENTS, AND FAILURE TO DO SO COULD DISQUALIFY THE CLIENT FROM OBTAINING THE SERVICE THAT WAS AGREED UPON. I FURTHER ACKNOWLEDGE THAT NO GUARANTEE CONCERNING THE SUCCESS OR POSITIVE OUTCOME OF THE LOAN CONSOLIDATION HAVE BEEN PROVIDED, EXPRESSED, OR IMPLIED BY NSS, ITS AGENTS, AND/OR AFFLIATES. I, THE CONSUMER, HAVE HAD THE PROGRAM EXPLAINED IN FULL AND TO MY SATISFACTION. I AM FULLY AWARE AND UNDERSTAND THAT I AM ENROLLING IN A STUDENT LOAN CONSOLIDATION PROGRAM. IF FOR ANY VALID REASON, I AM NOT SATISFIED WITH THE PROGRAM, I WILL ABIDE BY THE CANCELLATION POLICY, TERMS, AND CONDITIONS CONTAINED WITHIN THIS PAPERWORK.
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