ComplaintsforBank of North Dakota

• Initial Complaint

  04/17/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I was defrauded by the school that I received Student loans for (********* school of business) All Federal student loans were subsequently forgiven because of the fraud. The private loans from Bank of North Dakota will not be forgiven even though they actively took part in the fraud by supplying an uncredited school with student loans. I have been fighting this for years and because of being defrauded by the school it has greatly handicapped me getting a job of any kind. Bank of North Dakota will not work with me on these loans and demands full repayment saying that if I don't repay them, the State of North Dakota will come after me because they are "100% guaranteed by the state." I have emails stating that I requested to be put on a low payment/forbearance plan, which the *** employee told me she was putting me on. I have made two payments on this for the months of March and April, but now I come to find out that they are threatening my co-signer with legal action if one of the loans is not payed in full in ten days. On top of this they researched friends and family that were never part of the loan applications, that in some cases we don't speak to any more and threatened them with these same legal actions. I have documentation and emails of the low pay plan I was supposed to be put on by the employee and they wont give me an explanation for why my co-signer and I are still being threatened and harassed in this way. This is completely unacceptable and all of my family is tired of the harassment and threats.

  Business response

  04/18/2023

  While unable to respond to this specific situation because of confidentiality, Bank of North Dakota offers the following overview of policy which was followed in this situation.
  

  Student loans from Bank of North Dakota have different terms than student loans from the federal government. All terms of Bank of North Dakota loans are detailed in the agreement when signed. The choice made by the federal government to forgive some student loans is unrelated to loans taken out through the state of North Dakotas Bank of North Dakota.
  

  Bank of North Dakota student loans are only made to accredited schools as determined by the **** ********** of ********** At the time of this loan application, **************************** was a Title IV accredited school according to the U.S. ********** of ********** No fraudulent act has been committed.
  

  The borrower and cosigner are responsible to make payments on the loan. Payment arrangements may be made to allow the borrower or cosigner to pay toward the past due amount, but until that past due amount is paid, late notifications to the borrower and cosigner continue. This is done per the loan documents a borrower and cosigner sign and is ****************** practice informing both parties of the continued delinquency and the impacts the delinquency may have.
  

  If Bank of North Dakota is unable to locate the borrower or cosigner, skip tracing is completed and we will reach out to any references or other known associates seeking their assistance in finding the missing party.When contacting references or associates, Bank of North Dakota does not state the reason for requesting the information and legal action is never suggested.
  

  If this individual has further questions, we encourage them to contact Bank of North Dakota.

• Initial Complaint

  01/20/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I went to college and the colleges lied to me about funding and I ended up taking a private loan with Bank of North Dakota. I used every dime to cover my college expenses. After graduation I had issues paying back my student loans, after a divorce and not being able to find a job with my degree, because I was miss lead, I worked outside my field and Bank of North Dakota loans became due with many other loans. I eventually had to do what I had to do and I filed a Chapter *********************** from my loans for collections. I could make interest payments, but my Bankruptcy payments, along with other necessary bills I was not able to on a $15.00/HR. job. I have since then paid the Chapter 13 off and make $17.56/HR. Bank of North Dakota wanted $500.00 a month which i scraped to make , leaving me with no money to live on. I went and found a part time job on top of my full time job. I missed one payment and now they want $750.00 a month and then they show me owing over $3,000.00 and they want it every month. I have tried to consolidate with them, they denied me due to my credit , which I knew it would, but I tried. They want me to find a consigner and I do not have any family left except my mother who is in MN disabled and my sister who is disabled as well. I have asked them to work with me and pleaded and they will not help me. They even went as far as the Manager telling : Well ************** don't you think its time to pay your loans", after I was the one calling them to find a way to with a realistic payment option. I am so stressed and depressed. I cannot pay them what they want and I do not feel they care and they act like I am the problem, but all I am trying to do is make payments I can afford. HELP ME someone if you can.

  Business response

  01/27/2022

  **************,

  As with all our customers our goal is for you to have a successful repayment experience with Bank of North Dakota (BND).  We take your complaint seriously and have reviewed the information we received from the Better Business Bureau.  As you are aware, we have had multiple discussions regarding your payment options and have made several temporary arrangements to assist. 
  

  We have reviewed your account again for payment options. As previously offered, the option available is a lower payment forbearance which would temporarily lower the required monthly payment amount. BND guidelines stipulate the amount collected during a low payment forbearance period, must cover all the interest that accrues on the loans per month plus a small amount to apply to the principal of the loans to prevent unpaid interest from being capitalized (added to the principal balance) after the temporary lower payment forbearance arrangement expires. If capitalization of interest occurs it typically results in an even larger required monthly payment. In December 2021,BND offered a payment option to assist, however it did not meet your expectation.
  

  We have also discussed the option of consolidation with a cosigner.
  

  We will continue to offer assistance that is permissible to make your repayment a success.

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