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CalAttorney2, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney representing individuals and businesses.
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I had my federal students discharged due to my disability in

Customer Question

I had my federal students discharged due to my disability in 2011 ... my chapter 7 was discharged in 2009 or 2010. AES told me that Citizens would not discharge due to my disability. I went around AES last week to try to negotiate a better payment plan (I've been paying AES 187/mo. Citizens told me they discharged my loan in March of 2010 and told me not to deal with AES any longer. Upon reflection ... why did I have to keep paying AES if Citizens discharged my loan in 2010? How could that slip thru the system? Do I have any recourse for the time I made payments?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

You need to identify who exactly your lender was. If Citizens was your lender, and AES was only a servicer, you can disregard AES (as instructed by Citizens).

However, if AES is your lender, you need to work with them.

It is incredibly important that you keep all of these communications in writing, use "confirmation letters" - see my note below - when communicating by phone.

You can make an argument that you are entitled to a return of the money you paid, but the creditor is unlikely to return it. (They wouldn't have an obligation to do so).

Unfortunately it appears that there is a significant amount of confusion over the status of your loan following the bankruptcy and you need to straighten this out (again, in writing) to confirm your liability (or lack thereof - hopefully your conversation with Citizens was correct), and you can then move forward from there. If your loan status had been confirmed at the time of your bankruptcy discharge, that would have been the time to dispute any future payments to AES, as opposed to making a request for return now. (Again, it is perfectly acceptable to make a request for reimbursement, but not possible to require it).

Expert:  CalAttorney2 replied 1 year ago.

Confirmation letters: Keep written records of all communications - so if you speak to someone by phone, promptly send a follow up "confirmation letter" summarizing your conversation, who you spoke to, when, and any agreements you reached. Keep copies of your outgoing correspondence, as well as anything that you receive.