Originally Posted by dharmadel

Hello, I hope you can help me. I have tried to find the correct help to no avail. I took out two secured loans in 1987 and 1988 for college from a local credit union. I applied for deferrment and used it up. The loan came due and I started paying the $89 a month payment in 1990 or 1991. No problem, until I realized my interest was paid off and they were still applying my payments to interest. I stopped paying and started calling and sending mail as I had moved two hours away. I tried to explain what was happening for TWO YEARS. The woman I was dealing with, who was vice-president of the credit union, finally admitted that they had lost all of the original loan papers. I called a lawyer who told me to stop paying, period. The credit unions tried to or did sell my loan twice, but I never signed anything with them and never made a payment. TEN years later, Sallie Mae contacts me about this loan that they have bought from whomever. They are trashing my credit and I do understand that I have these debts. But they are charging me interest from before they had the loan, plus it took them four or five years to provide me with any papers at all....they did send papers but they say copy. I am a single Mom, am owed $27,000 in child support and raising three kids on my own. I asked them to take the interest off of the loan and they said only if I make a lump payment of the full loan amount. Righto. I do not know what to do. I cannot afford the monthly payment. I want to know if the lawyer I talked to gave me bad information. If I do have any rights in this case I need to know who to go to for help. I have tried different lawyers and credit counselours and no one seems to handle secured loan issues. Any help, advice and info appreciated!