GC Services student loan program is a SCAM!

Jul 03, 2013
review #425779

we filed a complaint with the BBB: GC services contacted me a few months ago because I was in default with one of my student loans.I enrolled in the program paying $390 a month for a total of 9 payments and the promise that I was going to be out of default at the end of the program and the benefits would be amazing after I was done with the 9 payments.

Now that I am almost done with the payments I am receiving calls from people harassing me and my wife saying that I am sending payments "voluntarily" and I need to be on a program to be out of default. They denied the fact that I was enrolled on the program and they say that they see no notes or anything to confirm that I am on a program with them and the fact that I spoke with representatives who helped me to enroll. I am not on the program but they are cashing the checks that we are sending them every single month!? They told my wife today that I can be enrolled starting now for a total of 9 to 12 payments starting on August 1st or I would be at risk of garnishment.

So they want us to make all the payments again?! We were really relying on the fact that we were almost done with the payments. We cannot afford starting the program from zero unless they send us the money that we paid. My wife keeps asking to talk with the manager named Greg who enrolled me in the program and he never returns her calls.

He is the one who helped us to be on the program that does not seem to exist.SCAM!!

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RedDani82

Oct 13 Fort Worth, Texas

From my personal experiencing and research, the only reason they would not show you as enrolled in the program (called the student loan rehab program) is if they did not get you to sign and send back the agreement required by the Department of Education, to enroll you officially. And technically, if they told you the same details that they are required to tell everyone, you aren't actually rehabilitating your loan for the 9-12 months, you are creating positive payment history at the lowest possible amount per month (approved based on your current income/living situation), after 9 months of this they attempt to sell your account to yet another debt collection agency (one that IS in the rehab program), who will then negotiate a new payment schedule (approved again based on your updated income/living situation) to actually remove your loan from default with the the Department of Education. It can take up to 3 months for the selling/negotiating/approval and first credited payment to process, thats why they call it 9 payments (even though theres more) in 12 months (or they'll slip up and say 12 monthly payments). Most cases will only be required to make an additional 6 months of payments in this program to be safely removed from default/garnishment, and once again you will be eligible for additional student loans if that is your goal.

0 0 Reply
AgrussLawFirm1

Jul 02 Chicago, Illinois

You should send a letter to GC Services explaining the situation. Ask them to send you something in writing regarding the payments you made and what is still owed. If the underlying debt is a federal student loan, you'll want to be careful to avoid wage garnishment.

1 1 Reply
Rob

Jun 14 Eau Claire, Wisconsin

Gota call from these people,, stand in line idiots,,garnish what?....lmao..I'm already in a gasrnishmrnt..got to go trap some squirls to feed family.. Lmao

4 0 Reply
Annie

May 13

Yeah, as the two sages have pointed out. it is all your fault, because collection companies are always ethical and follow the law.
They would never lie to you...ever ,)
Always document your conversations, even record them where you can, so find out what your state laws are regarding recording. If they are on the up and up, they wont mind. If they refuse to green light, there is your answer.
Yep, it's irrefutable, this is your screw up, the sage told you so.

2 1 Reply
been ripped off

Apr 15

I don't understand I owed 22 thousand; they took my income tax check it was 7 thousand plus and they still say I owe 18,500. Where did they attend school and take math? The garnishment of my check in addition to this is about 3 hundred...what the ***? I'm going to request all payments and talk to an attorney. Something isn't right. Please if uve been wronged by this outfit please speak up..maybe someone will take notice.

1 0 Reply
Anonymous

Aug 20, 2013 San Bernardino, California

Thats funny because I am getting the exact same calls and there saying wage garnishments. smh. now there going to call me every 7 days to see if i did a loan consolidation.

1 0 Reply
Bearded Sage

Aug 07, 2013

Consider the possibility Dan has mentioned. If your loan type (for example: federally guaranteed student loan) requires documents to be returned, you have to return them! If you read said document, it is an agreement to bring your loan out of default after making 9 consecutive monthly payments (of an agreed-upon amount) in a 10 month period. The agreement also states you will continue repayment after "funding" until your loan is paid in full. If you re-default, the balance in full is due. If you don't sign and return the agreement, it isn't much of an agreement, is it? I'm sorry about the position you feel you are in, but you can do something about this. Any collector at an agency such as GC can help you, not just "Greg." Furthermore, you can request to have your repayment program "back-dated" so your consecutive payments since August would be considered for this funding process. Additionally, you can still be garnished at ANY TIME until your loan(s) are out of default. This is also true of the dreaded treasury (tax) offset or any SSI/SSDI offset, as well. I hope this helps.

2 0 Reply
Dan

Jul 17, 2013 Jacksonville, Florida

The payments you made on your loan are not going to GC Services pocket, they are being credited to your loan. What happened to you is you did not return your application which is the only thing you need to do besides making payments in order to be in the program. You can enroll into the program again since you were never officially in it. It is not costing you any additional money because once the program is completed you still have to pay on your loan anyway with your new lender. GC Services does not make any money based on you paying on the loan, they make it based on your completing the program.

1 1 Reply
Bonebag

Aug 01

BS once they raid your bank account, they make lots of money! I am going to close My Bank account and see how fast that paper gets to me!
Dan it is obvious to me that you must be an employee!

1 0 Reply
Bonebag

Aug 03 South Bend, Indiana

Actually, they are! This company takes their fees off the top! What goes on your loan is 30 cents on the dollar! I am having my loans consolidated!

1 0 Reply
Bonebag

Aug 08

Strangest thing: they are stalling so I can't consolidate! When I told them I was consolidating my loans, they said that they would stop it by garnishing my wages! I told them I was still going to try. They then offered my pre consolidation payments I started the payment and they wanted the rehabilitation again! I called the new agency and she was stunned!
I guess that until 2012 this as against the law!

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GC Employee

Aug 30 Tucson, Arizona

Actually GC Services doesn't make any money unless you are Rehabilitated. The collection fees go to American Education Services.

0 1 Reply

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