ComplaintsforAlum Financial

• Initial Complaint

  09/18/2023

  Complaint Type:

  Billing Issues

  Status:

  BBB unable to locate business

  More info

  9/17/23 I responded promptly to an auto text about upcoming payment that my loans have been paid in full.However, a payment was taken from my bank account anyhow.No phone contact is working and email states "no such address"

• Initial Complaint

  11/05/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I filled out paperwork for the forgiveness of my student loan. I received information from Alum Financial and they told me I needed to pay $149 for 8 months and then it would go down to $49 and after paying for ten years they would forgive everything. Now they have sold my student loan to ****** and my payments will go up to $197 in January 2023. I am a teacher and cannot afford this. (I know it is my loan and I know I should have never become a teacher) now my balance has somehow grown to $184,000. I continue to fill out Income based repayment paperwork and things seem to be getting worse, instead of getting better. Please help stop this devastation, because I will never be able to pay my student loan.

  Business response

  11/09/2022

  Client enrolled in program 05/26/2021. Client agreed to service payments for us to assist in enrolling her into a forgiveness program through the ********** of ********** Client's loans were transferred to MOHELA due to previous lender no longer having a contract with the ********** of ********** Clients' payments of $197.00 was calculated using client's income documents provided for Recertification. If client is unable to make payment she can call in to ALUM and we would be able to assist in re-calculating payment for her. Client will need to submit in new income documents for this to be done on her account. Client's balance has grown due to interest throughout the years, something that should not be new to client since she has had loans for some time. The purpose for the *** program is to get loans forgiven at the end of her term which was previously discussed with her when enrolling.  

• Initial Complaint

  09/23/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I have been paying $49 for almost a year and was told it would stop after 6 payment. I've tried calling and get the run around with the company. I want to know if there is a way to stop the payments and or get my money back from them.

  Business response

  09/26/2022

  Clients payments of $49.00 are per contract set up ongoing until her program term is completed. Client since enrolling has been enrolled in to a IDR program and recertified into program again in 2022. Per agreement work has been completed and services rendered per signed agreement client would be ineligible for refund of monies paid to company. If client wishes to cancel service with company we can certainly assist in that. Client would be held responsible moving forward in keeping in contact with lender to ensure she is not kicked off of program and submit her yearly recertification paperwork. 

• Initial Complaint

  09/19/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I have been paying Alum Financial for two years and my student loan balance has not moved. I have called them several times and have asked them, They have not given me any explanation.

  Business response

  09/20/2022

  Client has been enrolled with company since 02/07/2020, client was made aware of term of program being 240 months and payments made to company being for service of enrolling her into program and recertifying her program. Client was made aware the payments calculated with her income would be applied to her balance. Client was made aware payments towards balance would not be made until Covid Forbearance is lifted. Client has been consolidated and placed into a IDR since 2020. And has been recertified in IDR program in 2022. Per signed agreement we have rendered a service and client is ineligible for refund. The last time client contacted the  company was in 07/21/2022 in which we went over recertification program and term. Client was advised on 09/01/2021 over call that the payments made to our company would not be reflecting her student debt balance since they were for service. No false information was presented to client since enrolling. If client wishes to cancel with the company we will go ahead and send a termination of agreement and client can continue with lender. 

   

   

• Initial Complaint

  08/26/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I have been paying for over a year and my student loan balance is still the same!

  Business response

  08/29/2022

  We have attempted to reach out to client to go over her account and she has not been responsive. Client when enrolling was made aware that forgiveness of the student debt would be forgiven at the end of her term not at the start of the program. We have rendered a service on clients account by entering her into a idr program. Payments client has been making are for our service per signed agreement. 

• Initial Complaint

  08/03/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  This company fraudulently induces student loan borrowers to enter into a contract with Alum Financial by misrepresenting themselves as an agent of the Federal *********************** claiming the only way to enter into the student loan forgiveness plan is by contracting with their company and fraudulently misusing payments made under the pretense of student loan repayments and using these payment to cover their own fees instead of applying them towards student loan debt.I was contacted by Alum Financial and told that they were an organization that was an agent of the U.S. Government and that they had a contract with the U.S. government to administer the student loan forgiveness plan and that the only way to enroll in the program is through Alum Financial. I was driving and was going to be on the road for a prolonged period and the Alum Financial representative told me enrollment was on a first come first serve basis and that enrollment was quickly filling up and I was urged to e sign the contract while I was driving, without being able to read it, to ensure my enrollment in the program. I was told I qualified for a $1 a monthly loan payment amount and that after ten years all of my loans would be forgiven. I was never told about a $1200 enrollment fee. I am also now being charged $49 a month, which is not was I was told by the representative. I have reached out to my loan servicer and I was told that this company is a scam and that the $49 monthly payment is not being applied to my loan and that I should request a cancellation of my fraudulently induced contract with the Alum Financial, a full refund and that I should pursue further legal action if that refund is not provided.

  Business response

  08/04/2022

  We never provided false information to *************** when enrolling with company back in 08/31/2021. Per initial recording client understood program she was to be enrolled under was an income-based program after term is completed forgiveness of the debt would be granted through the ********** of ********** The initial recording verifies with client that the payments made to us of $125.00 and $49.00 were program placement payments for service. Client was never told that our representatives were part of the U.S Government nor was told that we had a contract with the U.S Government for programs. Client was advised during call that we were not associated with the ********** of ********* nor were we her servicer of debt we were an enrollment center assisting her in the Federal Forgiveness Program. Client was never told of her being approved for a $1.00 a month loan payment, was advised on qualifying into a $0.00 repayment plan based on her current income. Which at the time was Unemployed. Per recording client was advised twice about enrollment fee including the $49.00 payments which she verified twice being able to make those payments. We made it clear to client that enrollment payments were not for going towards debt but were a service fee. We have successfully enrolled client under a $0.00 payment plan (REPAYE), client received correspondence from Fedloan dated to 09/20/2021 of approval. We have since cancelled clients account due to her request and have submitted her information over to our Company Attorney for further review. 

• Initial Complaint

  07/13/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I recently checked my ********** credit card and found charges from a company I did not recognize. The company name is Alum Financial. They have charged a total of $1,347 since August 2021. The company uses fraudulent methods to sign up students. Apparently they are selling a nonexistent loan forgiveness and/or forbearance program that doesn't exist. I do have a student loan through FedLoan. However, I didn't knowingly signup for this sham. I want to be refunded the money they scammed me out of. They currently have a federal class action suit filed against them (********* v. Alum).

  Business response

  07/14/2022

  We have contacted client and advised he signed up for services with one of our representatives back in August of 2021. We have emailed his signed agreement that indicates he signed up for our services. We have also completed work on clients loans, as he has been approved for a IDR program with FedLoan Servicing of $0.00 under the Pay as You Earn program. Programs for student debt forgiveness are real as Student Aid website has articles and programs available, which is how we were able to get client enrolled in one. Per signed agreement if services were rendered no refund would be given. We have since gotten Class action lawsuit dropped and it is invalid point in conversation. 

  Customer response

  07/14/2022

  Alum Financial scams people with student loans by representing they provide services that will result in either loan forgiveness or forbearance. I have a loan with FedLoan that was suspended during the Covid pandemic. Somehow Alum Financial started charging me a monthly without my knowledge. The company either fraudulently obtained my loan information or misrepresented who they were. In no case did I hire them knowing who they were or what they did. The company was the subject of federal class action suit for these practices. I plan to participate in the class action suit or undertake a small claims court case here in ******. The company scammed me out of $1,347 over a 9 month period. All one has to do is ****** their name to find numerous complaints similar to mine. I found no one who believed this company acted in good faith. My doctorate is in organizational psychology and I can attest to the fact that this company exists for the sole purpose of preying on students with loans they either can't afford to pay or simply want financial relief. In my case the company did not pay one cent toward my loan and did absolutely nothing to earn the money they extracted from me. - ******************************, **** ***

  Business response

  07/19/2022

  We have submitted an overview of file and request to upper management, and they have approved the refund for the payments client made when enrolled with the company. We will go ahead and mail out a check to client. We do advise client to keep in contact with Student servicer and ensure to submit yearly documents in order to maintain themselves in their approved IDR program. 

  Customer response

  07/20/2022

  I have received $297 in terms of a refund of the $1,397 paid. I have received no check. The refund was made by ***********

  Business response

  07/27/2022

  We have submitted for a refund for the client for the remainder collected. Client will be receiving a mailed check via ***** in the next couple of days. 

• Initial Complaint

  05/23/2022

  Complaint Type:

  Product Issues

  Status:

  Unresolved

  More info

  I signed up with this company for loan forgiveness made payments have seen zero results.I spoke to my student loan company they said they have not received any payments towards the debt and they I asked for a refund and they refused talking about they had my months reduced from 300 to 260 for payments. Even after I told them the loan depart does not even acknowledge you all as a me being involved I the program asked for my refund I have seen nothing!!

  Business response

  05/27/2022

  We have rendered a service for client per agreement signed. Client was enrolled into a IDR program based on her income and family size. Client provided necessary income documents used for approval. Client is made aware when enrolling where the payments would be going towards as well as who we are and what we would be providing for her as a service. Client was enrolled into IDR program that better benefits her in regards to repayment term. We have initiated a investigation on her overall file to deem if she is eligible for a refund. We will be contacting client once we have reviewed all information. 

  Customer response

  05/27/2022

  This company is a liar I enrolled myself into an income driven program in 2018 this can be verified by the company holding my loan. Also when I contacted them they said they had received no communication from a third party regarding loan forgiveness....they are actually the ones who told me to pursue legal action and to call a number to report it to the government!this company has rendered no service for me and especially no service worth more than 1k. They need to refund most if not all of my money back otherwise I spend my energy trying to band together for all other dissatisfied customers to get a class action lawsuit!

  Business response

  06/01/2022

  Client has already been contacted and made aware that we would be approving a refund of amount collected. Client has been let known that refund will take **** days to process and receive. 

• Initial Complaint

  03/28/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I have contacted the state attorney general regarding this company as they have violated UDAP. This company represents itself as they have an income driven repayment plan to help get out of student loan debt. I contacted them as none of my payments were reflected in my student loan balances I was told that the money IS NOT going toward student loans and that it is money for their services. This information was NOT disclosed to me and I was told that the payments would be going to my student loan debt. I have since acquired additional information about others who have been affected by this companies misrepresentations and will organize a class action suit for damages. I want my money back and a refund for ALL of the people who have been lied to and taken advantage of. I will file suit regardless. I do not want this unethical and immoral company to be able to do this to anyone else.

  Business response

  04/01/2022

  Upon review of file and call, client contacted the company seeking assistance for a repayment program on student loans. It was made aware to client when first enrolling 03/30/2021 that the program offered was through the ********** of ********** We have fulfilled our side of agreement/contract by submitting Consolidation and Income Driven Repayment plan application and having client fully enrolled in program based on income documents client sent in herself to us. Aside from this client was also approved into PSLF program. If client didn't read contract thoroughly that is out of our control. We have since refunded client all payments made to the company at this time to appease her desired settlement . In accordance client signed agreement with company indicating that she understood the services to be rendered for payments made. 

  Customer response

  04/01/2022

  This is not true. They have not refunded me $997.25 of the money they claimed would go towards my student loans. They only refunded me $196 of the amount of money I paid. It was never disclosed to me that they would be drafting money out of my account to go towards their business. I was told that all of the money paid would be going to my student loans.

  Business response

  04/04/2022

  Clients been mailed out a check for refund. Client should be receiving the check within **** days depending on the postal service. We have since cancelled client from our system. 

  Customer response

  04/04/2022

  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution would be satisfactory to me.  I will wait for the business to perform this action and, if it does, will consider this complaint resolved.
  
  Regards,
  
  *******************
  
   
  

  Customer response

  04/29/2022

  On April 4, 2022, they agreed to send me a refund check within **** days but it has been almost 4 weeks and I have yet to receive anything. 
  
  I would also like to confirm my address on file with ALUM FINANCIAL.  If they did in fact follow through, I would like to know when and where the refund check was sent.  
  
  If they have not sent out the refund check as of yet, I am requesting that they send it promptly to:
  
  *******************
  8440 ********************* 
  Apt #**** 
  ******, ** 77389
  
  
  

  
  

  Business response

  05/09/2022

  A refund check was mailed out to client on 04/01/2022 to the address previously on file being 4055 *****************************************************. A confirmation email was also sent to client on 04/01/2022 advising her of this. If client changed mailing address, client should have called us to verify/update. We will be re-issuing a refund check to client via ****** If client has any other questions or concerns she is able to contact our customer service department. 

• Initial Complaint

  12/06/2021

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  This company represents itself as ** **** of education and that they have an income driven repayment plan to help get out of student loan debt. I contacted them as none of my payments were reflected in my student loan balances I was told that the money IS NOT going toward student loans and that it is money for their services. They have violated UDAP and I have contacted the state attorney general. I have since acquired additional information about others who have been affected by this companys misrepresentations and will organize a class action suit for damages. I want my money back and a refund for ALL of the people who have been lied to and taken advantage of. I will file suit regardless. I do not want this unethical and immoral company to be able to do this to anyone else.

  Business response

  12/10/2021

  
  After careful review of ************ account, we've come to the determination that no misinformation was given upon signing up with Alum Financial. All of our calls are recorded for qualify assurance and compliance purposes, we do have a verification process at place at the end of calls that assures that every client understands the nature what they are signing up for. Furthermore, Alum Financial has rendered all services in full as agreed ** in her contract. These include: consolidating student loans out of default, entering client into a $0.00 repayment plan with ***********, leaving client in a better situation than when first enrolling. We understand clients frustration and we always want our clients to be fully satisfied with the service we have rendered. We are willing to issue a refund for the payments made on her contract to satisfy her concerns. Moving forward we will no longer debit or process any work pertaining to clients program. We will be contacting client to go over refund process. 

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩