• Report:  #3056

Complaint Review: Northwest Education Loan Association - Seattle Washington

Reported By:
- Renton, WA,

Northwest Education Loan Association
500 Coleman Bldg, 811 First Avenue Seattle, 98104 Washington, U.S.A.
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NELA guarantees student loans issued in the State of Washington against defaults under the FFEL loan program (i.e. government student loans). In 1992 they harassed me about being late on my payments when I was only marginally past due. In 1993 they tricked me into thinking I was in default when I was not. Furthermore, when they were supposed to be helping me avoid default through "pre-claims assistance," they were actually deliberately attempting to engineer my default. I was sent a final demand letter at 122 days past due (according to their records) that was supposed to be sent out at 180 days past due. However, I was in fact only 30 days past due at that time based on other records of theirs. Anyway, not knowing what to do, I paid the loans off through consolidation. They tried to overcharge me commissions (I have documentation), but dropped the fees to the right amount when I questioned it. So a couple years later, I noticed they were reporting me as past due on my credit report. I went to them and received a letter stating the loans were paid in full and my credit report would be fixed. Two years after that, I noticed they were reporting outstanding balances, duplicate accounts, bankruptcy, past due status. I got another letter stating I was paid in full. But the false reporting continued. I eventually found out "paid in full" only refers to principle balance in their estimation. Also, it seems they really did want to collect another 33% commission on top of the 25% already paid on a loan that never should have defaulted anyway since it should have been deferred based on in-school status they knew about as shown in phone records. Over the last 1.5 years I have sent them numerous letters which have received bogus responses. I filed a lawsuit earlier this year and the false information still shows on my report. I guess we will see what happens in court. Heh heh.

1 Updates & Rebuttals

NELA, Seattle, WA rip-off update


Sat, May 19, 2001

There were a couple of errors in my initial report that I need to correct. 1) NELA was not involved in my loans (to any significant degree in 1992). 2) I was actually between 60 and 90 days past due depending on how payments are applied to interest when my loans were accelerated (they jumped the gun by at least 60 days) 3) NELA assessed an upfront collection fee of 31.13% and an additional 18.5% collection fee upon consolidation of the loans (not 31.13% and 25%). But here is the dastardly deed. I paid the loans off in June of 1995 including a 2000.00 collection fee. They have since admitted 2000.00 was all I had to pay. However, they never reversed the 3488.45 entry to my account. Even though my account was paid in full, they consider it settled and it is coded as paid in their system. However, to them the paid only refers to principle. So, when they reported to the credit bureaus over the years outstanding balances and past due status kept on popping up on my credit reports related to the overcharged collection fees on my account that they tell me I don't owe. However, after deposing a witness this week, I found that when the balance on my account reaches zero, the status is supposed to become PF (paid in full including collection charges). So, the point is, they wanted the extra 3488.45 all along. I sent them a payment for the 3488.45 which they cashed. I was told they would refund the money (because I didn't owe it) but the status would revert to PD. What sense does that make? They need to reverse the false entry to my account to fix it. You would think after a lawsuit that has dragged on against them since March of 2000, they would have figured the problem out and fixed it.

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