I am writing to you in reference to the credit decision made on my student loan request on April 8,2013 for $3,300.00. The credit decision made on my loan was clearly discriminating based on my co-signer, who has a 720 score, 15 years employment at Stanford University and has no derogatory credit items on his credit and is more than qualified as a credit worthy co-signer.
On or around April 8,2013, The call center contacted me to reach my co-signer to clarify their obligation to co-sign for my student loan and my co-signer Sergio contacted Cory on April 12, 2013 to discuss his inquiry. Cory had asked my co-signer “ You have to many credit cards open, and what are you spending on these cards”, Sergio informed him that what he spends on his credit cards is not of his concern as Sergio pays as agreed to all his accounts including his credit cards. Cory informed Sergio that he would have to decline the loan because Sergio would not inform him what he is spending on his credit cards!!!!
This is appalling to hear their call center rep asked such questions about the use of someone’s personal credit cards and the loan was declined based that Sergio would not inform him his personal usage of his credit cards, or shall we say in the banking world, “ Excessive use of credit obligations by others” would be more of the term used as I told them that I would like a specific reason why my credit worthy co-signer who has over a 720 score, 15 yrs in the same jobs, only 65% usage of DTI on his credit cards and pays as agreed is not credit worthy? Below is the statement Sergio informed me by email and you should review how your rep communicated to him, “ I was very surprised, because he was telling me I should not have so many open credit cards with high balances. I should only have one or two. So I told him that he should mind his own business and it wasn't any of his business how I ran my financial life, and then he said that it was his business if it affected the repayment of the loan…..that's when he said they were denying me as a co-signer…so I just hung up on him.”
I have commissioned the Consumer Finance Protection Bureau and the ECOA to conduct a full investigation into this decision as my co-signer is more than qualified to co-sign for this loan. I have urged both agencies to conduct a comparison analyst review of loans given to others with co-signers with the same credit background.
It is with regret that I will never apply with their Bank and I have over 15 years experience as a FHA and VA Underwriter in Credit policy and fully knowledge in credit policy with the ECOA and Regulatory requirements by Banks. I have never in my life made a determination on a credit decision to someone based on how much they use their credit cards. As long as the consumer meets the terms and conditions of the creditor, pays as agreed, shows they are credit worthy and for your rep to ask such personal questions is violation of my co-signer’s personal civil rights.
I would also suggest their internal Risk Management and Legal Department investigate on how their credit determinations are made on consumer’s with Stella credit are made as this reflection has made a permeate reflection on how this Bank crosses the line on consumer personal usage of their credit as the balances on a credit card does not constitute a denial on credit!!!
You may forward the specific reasons for the denial of my loan application to my address above and I urge your upper management to re-evaluate your credit guidelines to assure that your employee’s are complying with your policies and the ECOA laws that protect personal information on borrowers and that they comply through Fair Credit Billing Act outlined by the FDIC.
Review about: Sallie Mae Loan.
Monetary Loss: $3300.