Friday, January 26th, 2007...9:11 pm
Sallie Mae Subsidary Linked to Aggressive Collection Tactics
Arrow Financial Services, a company owned by lending giant Sallie Mae is being charged in Illinois with aggressive collection tactics. The Chicago Sun Times reports on the allegations:
The suit alleges that Arrow engaged in such practices as trying to collect debts that have been discharged in bankruptcy, using profanity, and withdrawing money without authorization from bank accounts.
Arrow Financial Services recently received a $125,000 fine in Minnesota for the same practices. It is not clear from the article whether or not Arrow was collecting on Student loans or if it was simply aggressively trying to collect on other forms of consumer debt. Arrow Financial services describes itself as:
Arrow Financial Services LLC is part of the Sallie Mae (NYSE: SLM) family of companies and a nationally recognized leader in the receivables management industry with over $16 billion in consumer debt under management. We offer a full range of recovery solutions across a variety of asset classes including credit cards, student loans, utility, telecommunication, retail and automotive. Our team specializes in balancing courteous and professional customer service with the goal of maximizing recovery on managed accounts. Arrow’s unique combination of experience, reputation and world class analytical capability sets us apart from others in our industry.
It is important to remember your rights when a debt collector comes calling. The consumerist has a good collection of your rights.
Fair Debt Collection Practices Act
Dealing with Debt Collectors - Consumerist
Chicago Sun Times - Sallie Mae company charged with aggressive collection practices
Arrow Financial Services - AKA In UR bank account takin’ UR Money
5 Comments
February 2nd, 2007 at 8:40 am
[...] Apparently Thomas Fitzpatrick is under the delusional impression that Families and students across America view Sallie Mae as a bastion of hope and a helper of the underdog. He sees Sallie Mae as a helper and a company which gives students a helping hand. This delusion has led him to cry out against Senator Ted Kennedy’s calls for reform and changes in the student loan industry. And seriously why would an industry that gets paid even when students default, hires strong arm collections agents, holds your federal loans hostage, and is being investigated for improper realtions with student financial aid offices need any kind of reform? [...]
February 14th, 2007 at 12:04 pm
[...] Sallie Mae Subsidiary linked to Aggressive Collection Habits [...]
March 20th, 2007 at 6:34 am
[...] Brandon is having almost the same problem, Sallie Mae won’t release his loans, which is illegal. They are also calling him at what appears to be all hours of the day. Check out our post about Sallie Mae’s aggressive debt collection for links to your rights when a debt collector is calling you. [...]
July 18th, 2008 at 6:27 pm
This is the exact same thing that is currently happening to me. I want to join whatever lawsuit I can against Sallie Mae. They are the most ruthless, vindictive and heartless company I have ever talked to. Good luck to everyone. I feel your pain.
July 18th, 2008 at 6:30 pm
The exact same thing is happening to me currently. Sallie Mae and their debt collectors are the most heartless people! They use profanity against me, threaten to take away my nursing license and garnish my wages for 1/2 of my salary! What’s next. Good lord, I only owe $4800. Well, four months ago I owed $3900…now according to Sallie Mae I owe $4800.
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