Hi,

Has anyone else run into this? Hemar was the guarantor and I had been paying them (not federal--the private portion) but they went out of business and my accts ended up with Arrow. I should have had the debt validated then (2 yrs back--but was not savvy with it all).

On the credit report it shows up as assigned to Arrow, and Hemar put this in their letter, yet Arrow in their letter to me said they purchased the accts. When I was late with a payment, I ended up with a letter from another CA saying they purchased the accts--so I assume they sold the debt, but then I made the payment and it seemed to stay with Arrow. If Hemar (who is now out of business) assigned the debt to Arrow, can Arrow then sell it or transfer it to another CA?

Thanks!
Lorree

HEMAR is part of Sallie Mae. http://www.finaid.org/loans/secondarymarkets.phtml Arrow is a CA for SM. So Arrow would have been assigned the account, not sold.

Lynn,

In my letter from Arrow it says they purchased these accounts and offered me a settlement, even though in my letter from Hemar they say "transfer and assigned." Also when I was late on my payment, Arrow ended up selling one of my accts to another CA ( I paid them and the acct stayed with Hemar)--so I am assuming it is being handled as regular debt now.

Thank you,
Lorree

Lynn,

I wanted to ask...how is sallie mae involved now with these accts...if I call them, will they be able to tell me that I have debt with them now? ...it is never mentioned on my CR's or any CA letters, and Hemar did not say anything in their exit letter to me. If it was still considered a student loan, I assumed they could not settle? Arrow has been very eagar to settle for much less.

Thanks--lorree

SLM is probably the real party of interest; their involvement:

-HICA Holdings is a wholly-owned subsidiary of SLM.
-HEMAR Insurance Corporation of America is a wholly-owned subsidiary of HICA Holdings. It never "went out of business".
-Arrow Financial Services is 88% owned by SLM, likely outsources some of their work to SLM, and, although they would probably respond to a DV with a letter including just basic info about you and the loan, they could probably get everything (p-note, TILA disclosures, proof of sale or assignment, etc) if served with a Discovery Order from a court.

What this means to you? Not much. The collection agency SLM doesn't fully own (for legal reasons) is the assignee, or the authorized agent of, your loan's current holder.

Simply put, that means you have to talk to Arrow about your account. Arrow will probably be happy to settle...

FYI: private student loans that are "self-insured" by the lender are- at a certain level of delinquency- written off, sold to one of the lender's (JDB/collection) subsidiaries or, in extreme cases, to the highest bidder.

FYI: private student loans that are "self-insured" by the lender are- at a certain level of delinquency- written off, sold to one of the lender's (JDB/collection) subsidiaries or, in extreme cases, to the highest bidder.
[/quote]

Thanks for all the info...I am 99% sure this is what has happened and where I am with the accts. (They are 7yrs old and they are scheduled ready to fall off CR's). I was late on a payment to Arrow and they started to sell the debt to another CA, but when I paid it, it went back to Arrow. In the letter Hemar said, they said they "will cease operations" and my debt was "transferred" to Arrow. In Arrow's letter to me they said they "purchased" the accts.