ComplaintsforAlum Financial

• Initial Complaint

  11/29/2021

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Alum Financial uses SPAM software to get people to their debt consolidation fraud business.I have zero debt. I never had a loan they just got my number somehow. And I called them out. And then they put me on an auto-dialer and just kept ringing my phone all night.They only get people by saying this is the ***** Services Department."I kept at them until I got that they are Alum Financial and I would bet overseas Indian call center takes the calls. The number they used on me was ************. Then just "Restricted" once I ****** them off.***********************

  Business response

  11/29/2021

  Upon reviewing ALUM Financial does not do any internal marketing nor are we taking any new clients at the moment. Thus this complaint is not applicable or valid. 

• Initial Complaint

  10/26/2021

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  On or about July 16, 2021, I was in contact with Alum Financial and *************************** regarding consolidation of my student loans. I was contacted by My Great Lakes (which is my ************* and they stated regarding my loans and the new payments. When I phoned them back I questioned about the monies that I had paid to Alum Financial and they stated no payments have been made on my behalf. I tried to contact Alum Financial to no avail via telephone. I was on hold for over an hour until I finally left a voice message and sent an email. I received a phone call and email back stating the following: **In the event that client chooses to cancel services per signed agreement and services have been rendered and cannot be cancelled, client is responsible for full payment of base enrollment fees totaling $1200 as originally agreed. In the event that rendered services can be stopped/cancelled and cancellation exceeds 3 business day of initial enrollment, a $75 cancellation fee will apply. However, The Cancellation of Services States "the client may elect to cancel services at any time prior to after services are rendered. Determination of eligibility will refund is determined by a case by case basis.

  Business response

  11/16/2021

  Upon the reviewal of the file and recording client was made **** of who we were and what services we would be rendering.  Client was provided and signed a detailed contract that outlines our exact scope of service on 07/16/2021. Client was explained the fees in detail giving her a break down of larger payments of $150.00 and $49.00 for her program placement. Client contacted the company on 10/26/2021 asking to cancel her account, we were able to speak to client at the time and respond to her concerns over phone call, client was not cooperating at the time and just asked to cancel and proceeded to disconnect call .  Per signed agreement, "In the event that client chooses to cancel services per signed agreement and services have been rendered and cannot be cancelled, client is responsible for full payment of base enrollment fees totaling $1200 as originally agreed. In the event that rendered services can be stopped/cancelled and cancellation exceeds 3 business day of initial enrollment, a $75 cancellation fee will apply". At the time client called in to cancel, we were unable to cancel work that had been submitted on 07/19/2021 as it already was approved by 09/27/2021. Client was emailed on 10/26/2021 a Cancellation work completed email making her responsible for contract, let it be clear client only make 3 payments of $150.00 to Alum Financial, not upholding her part of the contract of $1200.00 . We have since cancelled the client accordingly as she requested and will no longer submit work on her behave or collect an payments. 
  
  

  Customer response

  11/16/2021

  I have read numerous complaints by other clients of alum financial and they detail the exact same thing that happened to me. This company apparently does the same thing to everyone. I contacted them regarding payments that did not make it to the federal government. Even the federal government stated they never received any payments from alum financial. When I contacted Alam financial about my concerns they did not seem concerned that they did not pay the government the money that theyve been taking from me. I have dealt with consolidation firms in the past and when money is taken from clients it is put towards the debt of that client. Yes, I did hang up on them after I tried to speak with them and they would not answer my questions about why they were not paying the government. They did not follow through with services that were promised so they breached their contract of services rendered. 

  Business response

  11/17/2021

  We are up front about our program fees and scope of services with our clients from the beginning but the client themselves are responsible to review contract and make sure they understand our our services on their end. Client was made aware that the payments she was making were for our services. Per her signed agreement we have rendered our services by successfully consolidating her student loans and entering her into a IDR program with affordable payment plan with her lender. 

• Initial Complaint

  10/14/2021

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Alum financial lied to me they said they would service my student loans. The money they took did not go to pay my student debt. They told me they would hold the loan. and did not disclose that they were a third-party vendor. Navient who has my student loan said Alum LCC is not student loan servicers and cannot hold my loan. Alum misrepresented their role and their necessity. They did nothing for me that I could not do myself. They are unnecessary and fraudulent. Navient said they were frauds, and they did not pay any money toward my account. STOP taking money from me. I did not agree or need this service. I agreed for them to pay on my loan, they did not. I do not Alum Financial to take any more money from me. Navient says they are a fraud and unnecessary.

  Business response

  11/16/2021

  Upon reviewing account client was never advised  that ALUM would be taking over her student debt. Client signed up for services on 09/08/2021 in which she signed a contract. Client was advised of a program on  09/08/2021 that was beneficial for her student debt based on her income and family size. Client was made aware since she worked for a non profit or government agency of a repayment plan for a term of 120 months, as well as advised that the Consolidation would be submitted to the ********** of ********* on her behalf. Client emailed our company on 10/14/2021 to stop collecting payments, we attempted to reach out to client at this time to go over her account with no response. Since client felt she was mislead, we have cancelled her account and have submitted a refund on 11/10/2021 of the one payment of $150.00 collected on her account. We will no longer debit or submit any work on the behalf of the client. 

• Initial Complaint

  09/20/2021

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  Alum financial contacted me on August 10th after I changed my status to no longer being a student at student aid website. They falsely claimed they were a student loan company and misled me into believing my payments made would be towards my debt. Unfortunately, the payment made was toward them for enrollment fees which are about $1200. They are now threatening to garnish my wages and ruin my credit. I tried to cancel after 5 days but was told the contract said 3 days. However, while on the phone with one of the representatives I asked them about the cancelation policy and was never told anything about not canceling within 3 days to avid paying a fee. They gained access to my **** of education account as well and I recently had to change the password.

  Business response

  11/17/2021

  Client enrolled in 08/10/2021 with the company, client was provided contract after she signed the document. After reviewing call, client was advised we were not her lender nor the ********** of ********** client confirmed with us that she understood who we were. Our contract clearly states that she has 3 days from enrolling to cancel with a $75.00 fee. Client called in on 08/16/2021 requesting to cancel account, in which we advised that work had already been submitted. Client was made aware that she would be continued to be billed in accordance to her agreement. We offered client to lower payment to something more affordable, client declined.  We were only able to collect one payment of $200.00 out of 6. Clients file was cancelled in September of 2021, a confirmation was emailed to client letting her know of the cancellation. 
  
  

  Customer response

  11/17/2021

  That's a blatant lie. I was never informed about a cancellation period to begin with. You guys also mysteriously deleted the email agreement that I signed so I could no longer access what was said and pick out the discrepancies in what I was told vs what may have been on that contract. Secondly, the person I was on the phone said VERBATIM, "WE WORK THROUGH THE DEPARTMENT OF EDUCATION". You guys literally got access to my FSA ID and changed the password. If you didn't claim you were working in collaboration with the ********** of ********** then why would I allow you access to my personal student loan account? That's literally the basis for your scam, posing as a company aligned with the ***** of ********* to trick people into starting a "payment plan". I can't wait for the class action lawsuit against you all cause your business practices are despicable. I'm glad I figured out your scam before too much damage was done, only $200 (which was AFTER I already cancelled my service) but the real victims here are the ones you guys have scammed out of thousands of dollars. ALUM FINANCIAL DOES NOT ACTUALLY OFFER REPAYMENT OPTIONS. DO NOT WASTE YOUR MONEY. THEY ARE DECEPTIVE LIARS.

  Business response

  11/18/2021

  We do not delete clients contracts, clients are provided a copy once they enrolled with the company. Client is responsible in saving documents on devise used to sign contract. If client neglected on reading in-depth contract that is out of the control of the company. Contract states a 3 day cancelation period with a $75.00 cancellation fee. The call was reviewed and client had been advised we were not her lender nor the department of education client verbally confirmed over the line she understood who we were. Account for the client is cancelled, no further payments will be deducted we have settled the account of the payment collected. Client is free to contact her lender and discuss repayment options. 

• Initial Complaint

  09/13/2021

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I had called the ********** of ********* to enroll in their student loan forgiveness program as can be found on their website https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service. When I called the number this company Alum Financial answered the call. The rep started talking about how I needed to apply for the Loan Forgiveness Program right away due President ***** providing aid for this program to a lot of people. I didn't realize I didn't have to pay for this service until this agent convinced me to pay as they would help me with my loan being forgiven. They are charging me $1500 plus after that a monthly fee of $49. After I received the paperwork I realized this is a loan consolidation. To me this is Fraud. I contacted them last week on September 13 to cancel. I have already paid through electronic check as they debit my account every end of the month. I have paid $250 since June 2nd up until August. The agreement was signed on June 2nd of this year.

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