Help! I have a private Wells Fargo (WF) Student Loan I took out in 2006 to complete my bachelor’s degree at a reputable college. This is one of 3 such private loans I took out with WF.
I am in current repayment for the other two that were taken out in 2005 and 2007. Somewhere I lost sight of this 2006 WF loan. Fast forward and I receive a lawsuit from them. The $25K loan is now $40K. I took the loan out in CO but now reside in AR. I initially thought this 1/2006 loan would be beyond statute of limitations, but WF shows I made 2 payments in 8/2010 and 9/2010, which reset the clock.
I believed these payments were for the other 2 loans that were on my radar, not this 3rd loan I had totally lost sight of. We are now headed for mediation. Yesterday the CFPB came down hard on WF for inappropriately applying pmts to maximize late fees, among other things. They have yet to produce proof of these telephone pmt conversations to support their claim that I knew what pmts I intended to make.
In light of the CFPB ruling and their failure to produce proof of these payments, what is a reasonable settlement amount? Do you have any history of what WF has settled for?
I have certainly seen private student loan lenders settle these claims when sued. However, I really think you would be best represented by a consumer attorney who is licensed in your state. One place to find such an attorney is here and here.
Since you have already been sued I don’t think you should waste this opportunity by guessing how to handle this. Get some professional representation and advice.
Being sued by the lender is an opportunity to settle. If you want to see the result of other cases, click here.