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My Student Loan Lender Sent Too Much Money to The School

“Dear Steve,

I signed for 16,000 bank school loan, when a payment was late I received the bill stating the total was 21,000 two different loans, one for the 16,000 and another for 8,000. I told the bank 16,00 was mine.

The story goes, the school told the loaner they only received 8,000 he called the bank and the said sorry bout that and issued another 8,000 a separate loan.

I found out the school did get the 16,000 and put 8,000 toward the next semester. I told the bank I only signed for 16,000 and I would have to file a fraud report.

Why when the loaner called the bank to inform them he only received 8,000 why didn’t the bank know the school had already received the 16,000 and to question the school instead of giving them more money!

Why do I have to fill out a fraud report when the fraud was clearly the banks error What is my recourse . Thank You for your time in this matter.

Lena”

Dear Lena,

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Clearly you should file a report with the bank and the school. You should do this by some sort of traceable mailing method and you should keep proof of delivery with a copy of the letters you sent. You should also file a complaint with the Consumer Financial Protection Bureau. Click here to file your complaint.

While it is unfortunate you have to go through this, the reality is it is the only way to protect yourself from the mistakes made by the bank and/or the school.

You should not be obligated to repay the errant $8,000 loan unless you used the loan to attend school.

After filing all of these complaints, if the bank is still giving you a hard time then seek the assistance of a local attorney who is licensed in your state to represent you in this matter.

It seems this situation could be very expensive if it is not corrected. You could be obligated to repay the other $8,000 that was disbursed in error to the school.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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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.
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