My parents are going through a bankruptcy due to my dad's near death health crisis seven years ago. Insurance wouldn't cover a lot of the bills, and my parents were struggling financially. Now I know that student loans aren't covered under bankruptcy, but this situation seems like they ARE affected.
My mom is a cosigner on my student loan with Wells Fargo before all of that went down. After my parents filed for bankruptcy, Wells Fargo has disabled my online account, and they have told me they will quit sending statements.
A little more about me. I'm a 25 year old recent college graduate who works in the meeting and event production industry. I make well over $37,000 a year. The Wells Fargo loan is about $17,000 left, with a government loan about $23,000 and a small loan about $1,500, which I plan to pay off with my tax return this year. No credit card debt, and a truck payment of $115 a month. I've never had a late payment (my recent credit reports show that).
Here is the letter I got in the mail.
Dear FromHereToCompetitor,
Due to the Debtor's recent bankruptcy filing, Wells Fargo is taking the following actions:
- Online or Paper statements regarding the Account will no longer be produced or mailed;
- If the account is a line of credit, then it will be restricted as to additional advances, closed, or both; and
- If the Debtor's payment was previously made by an automatic payment deduction from a deposit account, this transaction has now been discontinued.
I was transferred to several people and they all told me that's just what Wells Fargo does. I asked if there was any way to get my account back online, and every single person told me, "No, there is not."
The first bullet point has me concerned. If they quit mailing me statements, and they took my account offline, how would I know what to pay? Does this hold up in a court of law? I've never had a late payment with Wells Fargo, and have always paid a little more than minimum payment.
Is this common practice in the banking and loan industry? Has anyone been in a similar situation? What was the result? Am I screwed for good?
Submitted March 19, 2017 at 08:40AM by FromHereToCompetitor http://ift.tt/2nFAwJo
