Lawsuit Loan Los Angeles

Auto loan lawsuit, court summons arrived today. What now?

Question: My mother (67) let my younger brother borrow her credit to finance a car. Well everything went well, until he was gunned down and murdered in Los Angeles. My mother fell into deep depression to the point were she's still taking medication. Well sure enough the vehicle was repo'd and now she gets a court summons at her door, stating that she is being sued. My mom doesn't work, hasn't worked for a while because of her age. As a matter of fact she's currently living under a section 8 housing develpment and recieves SSI as her only source of income. I don't intend to justify the delinquent account and much less cause pitty, however my questions are: What will most likey happen? Will she get her SSI money taken? Will she go to Jail? I would honestly appreciate any insight and opinions. Thank you so much in advance.




Answer: I think worst case scenario is that they would be able to obtain a judgement against her. They cannot take her SSI, and I have never heard of someone going to jail for a default on a loan. It will be attached to her credit for 7 years, but she can file a letter with the 3 major credit bureaus regarding this issue. Basically, what happens is that they sue for the amount of the loan minus the amount the car sold for plus attorney and suit fees. So sorry to hear about your brother, and good luck.

Did UoP Return Your Title IV Loans and Stick You With A Bill?

Question: I withdrew from the University of Phoenix recently only to find out that my Title IV funds would be revoked and returned to the lender, which would then cause me to owe a balance to the university. If you're in this preducament, then I want to inform you about a class action lawsuit against UoP. The Braun Law Group out of Los Angeles is representing students in a class action lawsuit against UoP for allegedly improperly returning federal loans and converting it to debt owed directly to the school. Class members are those students who secured Title IV loans for their education, dropped out of school, had part or all of their loan monies returned to the lender and were then hit with a bill directly from UoP. The lawsuit contends that to the extent a student had incurred education costs and was receiving Title IV loans, UoP had no right to return those funds and then seek payment directly from the student. If you're in this predicament like me and would like to join the class action lawsuit, please contact Michael Braun at mdb@braunlawgroup.com or by phone at (310) 836-6000.




Answer: The University of Phoenix is following Title IV funding rules. ALL COLLEGES who recive federal funding have to abide by these rules. They are called SAP (Satisfactory Academic Progress) rules and like I said, ALL schools have to follow these rules. Your aid has to be "earned" by your attendance. If you don't attend at least 60% of your semester before dropping, then you will have consequences. The aid goes back to it's source. It's as simple as that. Your school likely has these SAP policies written on paper somewhere. I'll bet my bottom dollar they even have a copy of the SAP rules with your PIN or signature on it somewhere. I guarantee!!! Did you sign a bunch of things when you enrolled you didn't read? Did you sign a bunch of papers when you dropped your classes? Your class action lawsuit will not get any farther than this... I sure hope you haven't paid any lawyer for this... because all schools do it. Here are a few other schools SAP rules. As you can see, they are all the same. http://grayson.edu/pdffiles/fa_sappolicy.pdf Students who withdraw completely from their classes or receive all F’s and/or a combination of an F, W, or I: Federal regulations require the institution to calculate a Return to Title IV (R2T4) for all students who are within this category. Students will be notified by mail of the amount of unearned aid that must be returned to either GCC and/or the Department of Education. http://www.longwood.edu/financialaid/sap_policy.htm C. Withdrawal from all classes during a term may also result in a change in the financial aid award for that term. The federal Return of Title IV Refunds Policy states that students who withdraw before the 60% point of the term (as calculated by the number of days in the term) will have their financial aid award reduced. 1. Upon withdrawal, the Office of Financial Aid will calculate, from the number of days in the term and the number of days of the term that the student was enrolled prior to withdrawal, the percentage of the term that the student completed. This percentage will be applied to the amount of aid received for the term with the student being able to retain only the amount of aid for the percentage of the term actually completed. 2. The unearned portion of financial aid award must be returned to the Federal, State, and Institutional programs that have been awarded. If excess financial aid funds have been refunded to the student, a portion of these funds may also need to be returned to the financial aid programs awarded. This may result in large sums being owed to Longwood University or Federal, State, and Institutional financial aid programs or both.