I applied for a forbearance in February, and was told that it was "being processed, " and "in the computer system, " and "a letter will be sent confirming it but you don't need it."

I never received a letter. Every time I called the company, I was told that they still had an old address for me. I updated my address repeatedly, adn waited for my letter. Finally after six months, I insisted on speaking with a supervisor. They were moving operations overseas during the summer, and it obviously hurt their ability to keep track of their customers.

THE SUPERVISOR SAID THAT THE LOAN WAS IN DEFAULT.

They claimed I had never contacted them before September of 2008. So I faxed a copy of the form I'd faxed, my fax confirmation sheet (with date and 'ok' status) and my phone records from all the times I tried to update my address. Then they said I couldn't prove that anyone had read the forms faxed, or picked up the phone when I called. I filed a complaint with the executive relations team. After a month, they told me they had "investigated, " (by talking to the same people I'd already talked to) and were refusing to reconsider the default.

They added $4, 000 in fees and collection costs to the body of the loan - it's now 40% more than I borrowed. And by keeping it in default, they gain bankruptcy protections. It's a great deal for them, and it's all because of their own "mistake" in losing my paperwork and records of calls. Shocking that their "investigation" revealed that they cannot reverse the default.