It wasn’t so “sudden.” If I read the article correctly, the wife thought she had six months from her graduation to pay off. It’s been a year. And didn’t she notice some months ago that the bank was deducting a certain amount of money from her account? Why didn’t she or her husband contact the bank and work something out?
Sorry, but the story sounds fishy. I’ve heard of set-offs and they are a legitimate practice. Simply put, don’t pay off your obligation (or work something out with the lender) the lender has a way to get its money back. Otherwise, if the lender can’t recoup the money owed from too many consumers, it’s going to go under.
Look for the Obama administration to forbid setoffs and force banks and other lenders into bankruptcy.
i think it’s called ‘did you read the fine print’?-not only on her loan app but the bank acct it was connected to