Sallie Mae Accused of Overcharging Military Personnel on student Loans

The answer is “yes”

Sallie Mae overcharging militaryServicemembers Civil Relief Act caps interest on loans to military personnel at 6 percent, along with providing protections against default judgments and garnishments, and a person briefed on the matter said compliance with the 6 percent limit would be a key part of the F.D.I.C. action. Under the law, if a person borrows money at a higher rate and then enters the military and requests a lower rate, the lender must reduce the rate to 6 percent, and forgive any interest above that level.

Federal regulators plan to accuse Sallie Mae, the giant student lending corporation, of charging military personnel excessive interest on student loans, and the government is looking into similar allegations against other lenders.

Sallie Mae revealed the pending action against it this week in its quarterly earnings report, stating that the Federal Deposit Insurance Corporation warned in July that it planned to take “new formal enforcement action” against the lender.

Click here for the rest of the article…

Link to Sallie Mae & the Military…

We have several videos on our web site.  Below are is one that might be of interest:
  • “Meet Ms. Drain and Suggestions on How to Hire an Attorney”

 

 

[av_video src=’https://www.youtube.com/watch?v=LN5WSvPGxJQ&feature=youtu.be’ format=’16-9′ width=’16’ height=’9′ av_uid=’av-plzkf’]

 

MUSINGS FROM DIANE:

“At what time did Sallie Mae think it was a wise business decision to charge our military personnel a higher interest rate than allowed by law?  I cannot believe this stupidity starts at the bottom.  It has to come from the top management, if not the very top.”
292 words|1.5 min read|Categories: Consumer Issues, General Legal Issues, scams|By |Published On: August 26th, 2013|Last Updated: May 29th, 2022|

Share this article

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau

In Case You Missed It

  • In today's consumer landscape, credit cards are the normal tools for managing finances and making purchases. However, having credit card debt can lead to financial stress and vulnerability to predatory schemes. Recognizing the importance [...]

  • The Arizona Supreme Court decided those living in motorized homes (such as motor homes and RVs) cannot protect their homes. The Arizona Supreme Court's decision In re Drummond, 23-0009 (Sup. Ct. Arizona, 3/7/24) bans [...]

  • All Attorneys Must Return Client Calls, Even Flat-Fee Attorneys In a recent bankruptcy case, In re: Dennis Molnar, 19-bk-09525, 2024 WL 190919 (Jan. 17, 2024 N.D, Ill.), a court highlighted a [...]

  • Published On: January 3, 2024

    Understanding Why Some Bankruptcy Cases Get Dismissed or Discharge Revoked for Bad Faith Bankruptcy is meant to offer individuals and businesses a chance at a fresh start by alleviating financial burdens. However, [...]