PHEAA: Scandalous, Infamous, Corporate All American

The PHEAA is the infamous scandalous private student loan corporation that masquerades as a Pennsylvania State agency. They operate as AES (American Education Services) but use a PHEAA letterhead to intimidate loan holders into thinking they are a government agency. They send out bogus federal student loan default notices like this one to intimidate employers and debtors into signing over 15% of their paychecks to the PHEAA. Of course they also offer debtors an option to have a lesser amount deducted directly from their personal checking accounts, if the debtor has a personal checking account. And if the debtor does so, they have to sign an agreement with AES that AES has the right to share their personal banking information with any "third party" or "criminal justice agency" that requires it. Yet, they cite no law to support this mandatory agreement to infringe on people's personal banking information. If you have a direct deposit agreement between your employer and your bank, you have to sign the same kind of statement to allow "third parties" access to your bank account.

Here is a scenario that has happened to a friend. They had direct deposit. They owed some money to a creditor, which had gone to a collection agency, similar to AES. Because they signed this "third party" infringement of privacy agreement, the bank freely gave out their banking information to the collection agency. So the collection agency knew in advance how much money was deposited on payday and when. The collection agency proceeded to get a levy of the debtor's bank account and unbeknownst to the debtor (they failed to notify them in advance as required by law), they siphoned off the entire account balance on payday. So much for the convenience of direct deposit. It's convenient for the banks and for the creditors. Extremely convenient. Now you may say, well these people asked for it. They put themselves into debt. Oh really? So for that oversight they deserve to go for two weeks without any money at all, which would easily send many people into homelessness and unemployment. But at least the creditor gets their money and that's all we care about in America's corporate welfare state oligarchy.

If you ever face a similar situation you should contact your bank to see if you can have the situation reversed. Likely you won't get the money back taken by the creditor or the bank's fees (around $200) for aiding them to take all your money. But you may get the bank to reverse any overdrafts that occurred in the meantime.

Did you know that the U.S government has agreements with private corporate financial blood hounds like AES? Interestingly, By the way, the letter you see here was sent to a debtor who took out a college loan in California. What the freakin' hell does Pennsylvania have to do with it?  Good luck trying to find legal help against these mafioso-gone-legit government approved loan sharks. You'll do better to file your complaint and represent yourself.

OK. This is where we cue the Star Spangled Banner. Hold your hand over your heart and look lovingly at the American flag, and remember all the people who die for it.

The Evil that Banks Do

Premise: Banks are The finance industry is inherently evil.

They trade on temptation, a tool of the devil (if you believe in that stuff). Nonetheless, they are evil. People get into debt head over heels because banks make it so easy to do so. Then the banks come along and act like these people who can't or won't pay their bills are the dregs of society.

And so they collect and sell loans to collectors and resell, and each time tacking on charges and fees. So, if you started out with a $20,000 school loan it's quite reasonable, in our society by and for the money wealthy, that you could owe the lenders 400% in interest charges accumulated over the years, and the interest charges keep on coming.

The banks will seize your possessions, cars, homes, bank accounts. They'll attach your wages. They use underhanded, illegal tactics, especially with those who can't afford a lawyer, because people can't fight back and banks can get away with it.

They're ingrained into the law and the 'less than rich' man or woman has no recourse. No recourse, but to pay and pay the rest of their lives because the debt hasn't been paid off and the interest must, by all means accumulate. the interest must never stop. Not death, war, or gloom of night shall stop the interest charges from accumulating. In fact war is a profitable venture so, by all means, fund it, at an acceptable interest rate, of course.

And so bankers of the world are the evilest of people. The root of all evil, indeed.

But, you say, it's a responsibility. You get into debt and you have to pay it back.

All fine and good. But, let's say you're from the poor side of town, or even the not so rich side. You want to go to college. If you don't go, your fucked. Shit jobs the rest of your life. If you do go, no choice but to borrow, and once again you're fucked, because now the bank owns your ass and you get a job good enough to both live and pay back the debt or else the interest rate piles it on.

And so the cycle continues. One slip up in the fabric of your fate and the debts don't stop coming. You have the college and you make the bucks. But, the debt sucks that all up.

On the other hand if the family is doing well, paying back the loan is no problem; or maybe you don't need that loan. Mom and dad are there for you. Lucky you. Fuck me.

It's a world by and for the rich. Fuck the poor. That's the evil. That's wrong. It's beyond simple self discipline and self control. Things are complex. It's never as simple as the picture you paint.

Take Mr. Pennypacker in It's a Wonderful Life. Typical heartless banker.

Now, here's a pop quiz. What business sanctioned as legitimate by law is also very popular as criminal enterprise. Hint: it has to do with money. Hence, people in this business could easily move between criminal and legal circles of this industry.

What's the difference between a vig and interest on a loan?

Now, I never said there shouldn't be banks. Why be so extreme. I just said they're evil. They need reform. They already have very heavy government regulation, although there's a lot of corruption, as we can see with Enron, Anderson Little, and other corporate high crimes, in their accounting and banking practices. The reason there is so much regulation is because of the great opportunity and temptation to abuse having access to everyone's money. If that abuse didn't exist, the regulations wouldn't need to be there. So, it is recognized by law that banks are potentially corrupt.

A lot of people who appear well off are in the same boat. They may use credit to buy a house, car, etc. Then when hard times hit they have to sell out or be foreclosed upon. It's the temptation that banks put out there making it easy to get loans and easy for them to foreclose and collect.

The bank concept is a good one in theory only. In practice it is to the bankers' advantage to see people get in over their heads so they can be foreclosed upon. They have an incentive to do that to people. It's money. Banks get to have the people pay on loans and when they can't they can resell the property for a nice profit. You could be paying a car loan and have one payment left, but if you can't make that one payment the bank will repossess it and resell it at a nice profit. They don't want to work with people.

Banks also will fee people out the ass. If you bounce a check, the bank may have a policy to re-post the check 3 more times to see if it will be paid. If it continues to bounce they charge a $30 overdraft every time. So, one bounced check will rack up $90 for the bank. Then if the person has other checks out, their account becomes too low to pay those checks and each one racks up another $90. Nice work for bankers who do nothing but sit on their fat asses and collect.

Why do I have an issue with banks? They have their greedy fingers in everyone's money. No other industry has the power to deduct a bill or fees directly from your own bank account without so much as a notice. Whether the charges are legal or justified is besides the point. People earn money and should have the right to decide when and if they want to pay someone, including their own bank. They should have the right to question and refuse to pay someone if they disagree with the bill. But, with bank fees there's no recourse. The banks take it out of your account and may as well say 'fuck you sucker, we're taking this fee' while they're at it. This is morally and constitutionally wrong.

In the case of poor people or someone who has gotten into a bind, they are the ones who suffer the most. Banks operate on the premise that everyone has money in their accounts so a few little deductions here and there won't matter. They can't fathom the concept that some poor guy might be down to his last ten dollars before next week's paycheck and that ten dollars might be the difference between buying food to survive for another week or not. No bank would give a flying fuck. They let the guy die rather than asking before they deplete his money.

Banks and people in the finance industry live in a world of oblivion to life itself. To them everything is based on money. They have the power and sometimes the law and so they don't care who gets hurt. They take what they feel is right with complete disregard.