Citibank Student Loan Corporation as it was known when I consolidated a Federal Student Loan with Citibank
committed fraud against myself and the US Department of Education and the taxpayers.
It all started in September 2000 when Citibank and other Lending Institutions were competing to get student loans into their coffers. They were being paid a fee to handle those loans and also they would receive interest when the loans were repaid. This was all with a 100% percent guarantee from the Federal Government through the US Department of Education and Loan Guarantee Agencies. They discovered that it was far more profitable to default loans so they joined up with Edfund which was supposed to be a nonprofit agency owned by California Student Aid Commission. Citibank paid kickbacks to UCLA to be their premier lender. The financial aid couselor told me, Citibank will be on your credit report and that will be better than having William D. Ford student loan on your report. So consolidate your federal loan with Citibank and you will be in great shape. Within two weeks of consolidating my loan, my $150k credit line was destroyed. The worst credit on your report is to be delinquent on a federal student loan. While you are attending school, your loan is supposed to be in deferrment automatically and the US Government pays interest on that loan to the lender, Citibank. Citibank used a third world country to handle the loan documents unknown to me. Of course they screwed up the whole loan consolidation. I was reported delinquent on my student loan even though I was in school. I send letters to Citibank only to get letters back from their paralegal who reversed the whole loan into a unsubsidized loan.
Unsubsidized meant that Citibank was not entitled to interest payments from the US Government. They collected the payments, reported me delinquent and refused to correct their mistake. Living in California with bad credit is impossible. I tried to contact the US Department of Education and they refused to do anything and kept telling me to call the lender. So I called the loan guarantee people who were in on a scam to default loans and they would not help me either. This went on for four years and then I had to leave California, give up my career in the motion picture industry, and move to the east coast. I tried unsuccessfully to get help there.
In 2005, they illegally defaulted the loan and collected a refund on the loan through Edfund. Meanwhile I had
Edfund auditited by the California Department of Audits and they were embezzling large amounts of money.
I tried to contact the Attorney General and the Inspector General about my case, I got ignored completely.
After about 30 phone calls, I finally got the Inspector General to answer the phone and he stated that I should file a keytam lawsuit. He also hinted that Edfund was in trouble. I told him that Edfund and Citibank were
stealing money by illegally defaulting student loans. Eventually California Student Aid Commission looses their
contract with the US Goverment to handle student loans. They transfer all the loans to some other state and the same scamming employees are now handling those loans. As for my loan, Edfund finally handed it back to the
US Government Default Resolutions Group in July2009. They lied and stated that I was not sending them letters even though they were certified letters. I asked them to investigate the illegal default, and they refused and continued to lie even though I sent certified letters to the Counsel General which is the lawyer for the Department of Education. They made incriminating statements and so I asked for documents from the
Freedom of Information section of the US Department of Education who also lied and refused to give me documents on the refund Citibank received. I finally convinced the Department of Education direct student loan to send me copies of the check they refunded to Citibank for the consolidation. Then Citibank transferred their customer service to India. I was able to shanghai an Indian woman to send me a complete printout of my whole loan record from Citibank. Citibank caught on and tried to delete most of the record but some idiot left a crucial page in the document which clearly shows how they lied and defrauded the government on the interest. They added money to the original loan balance instead of subtracting it and then
charged the US Government interest on a higher amount. They never corrected the loan as they stated in numerous letters to me. I took them into federal court and I am sure they paid their lawyer more than
the entire amount of the loan and the interest. I made sure they lost every cent. The Judge asked me to take my lawsuit to the Civil Court. I decided not to do that. Instead I had the entire loan wiped out because I am
now legally disabled. I am writing this rip off report to warn all parents and students. do not take out student loans. The US Government has refused to protect your rights, and until they do that you will not be
safe. The following is a link to numerous horror stories about Citibank Student Loan
wallstreetonparade/why isnt the US Department of Justice investigating Citibank Student Loan?
They keep changing their name so that people cannot sue them. A federal court in Brooklyn New York
ignored their request to throw out my lawsuit because I used this name that was printed on my loan
documents. They tried to lie and say all loans were given to Chase and another bank.
Even though I did not win a judgement I won something more important and its public information.
The judge stated there was clear and convincing evidence of fraud on Citibanks part. I also sued California
Student Aid Commission who never responded to the lawsuit.