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401k loan default question
Posted on 12/21/13 at 8:15 am
Posted on 12/21/13 at 8:15 am
I took out a small 401k loan through my company's plan which was not a big deal, when it was with wells fargo. Well the company got bought out and the new company switched our 401k's and loan balances to ibenefitcenter. These people have been complete assholes to deal with. They did not send out re payment books, only notices that loan payments were late. Well they told me they could put me on autopay, and I assumed that they did. Only I noticed the payments haven't been taken out of my account the past couple of months.
So I go check the account and it says my loan has been defaulted. WTF! What are the rules, can I bring it back current before 1/1 and not default on it? It's not a lot of money, but still, I don't want to pay the penalty and taxes. Can someone chime in on the rules to bring it current? I sent them a note stating that I will sue them for the penalty and taxes if they don't bring me back current and I plan to get them on the phone first thing Monday morning.
TIA for responses
So I go check the account and it says my loan has been defaulted. WTF! What are the rules, can I bring it back current before 1/1 and not default on it? It's not a lot of money, but still, I don't want to pay the penalty and taxes. Can someone chime in on the rules to bring it current? I sent them a note stating that I will sue them for the penalty and taxes if they don't bring me back current and I plan to get them on the phone first thing Monday morning.
TIA for responses
This post was edited on 12/21/13 at 8:16 am
3
Posted on 12/21/13 at 10:45 am to dillpickleLSU
quote:
Well they told me they could put me on autopay, and I assumed that they did.
You do realize that you don't just get "put on autopay", correct? You have to fill out forms to do things like that. The responsibility is on YOU, not on them.
Hope you get everything straightened out.
Posted on 12/21/13 at 11:17 am to VABuckeye
I filled out a form and sent it in
Posted on 12/21/13 at 1:06 pm to dillpickleLSU
Was it an actual loan default? If they switched plans after the buyout, it's possible that they're considering it a deemed distribution since it wasn't paid off before the original plan was closed.
Posted on 12/21/13 at 2:31 pm to Brummy
No the loan actually transferred...then I defaulted...I made payments, WHEN they actually sent me information stating I needed to make a payment......customer service on this new plan is terrible
Posted on 12/21/13 at 3:14 pm to dillpickleLSU
No sympathy here. I assume you knew the payments were due and they weren't being made?
Posted on 12/21/13 at 4:36 pm to dillpickleLSU
Why would they need to send you something telling you to make payments on the loan? We're you not already making them before the account transferred?
You sound at fault on this one completely, but best of luck!
You sound at fault on this one completely, but best of luck!
Posted on 12/21/13 at 6:03 pm to HurricaneDunc
quote:
Why would they need to send you something telling you to make payments on the loan? We're you not already making them before the account transferred?
Ehhhh, If I have a loan transferred and after checking my online statement/no paper statements are coming in and maybe, let's say, not even a balance is showing, I'm definitely not just "sending in a payment" until I can reasonably rely that they have their shite together. Believe me, I've ran into a really shite situation with one of my student loans being "lost" for almost a year due to a transfer.
Of course, I was also on the phone maybe 50 times during that period working to get it figured out. I wouldn't just sit around either.
Posted on 12/21/13 at 7:39 pm to dillpickleLSU
This is why I sit down and look where every dollar is going/went once a month.
Posted on 12/22/13 at 11:34 am to Teddy Ruxpin
quote:
Of course, I was also on the phone maybe 50 times during that period working to get it figured out. I wouldn't just sit around either.
My point exactly. Sure, don't send a payment to a random address. But figure out what you need to do and get it taken care of. Be accountable.
Posted on 12/22/13 at 4:04 pm to HurricaneDunc
Well a coupon book would have been nice....they never sent that....the only thing I ever got was a notice that my initial payments were late...so I called and got that straightened out and got the payments straight...the lady said she'd send me a form for auto pay....I got the form...sent it back....noticed that the payments hadn't gone through in a couple months....hadn't received any further notices...so I went check into it and sure enough it said I defaulted
Eta....before the account was transferred Wells Fargo automatically took the payments out of my paycheck.....no action was required on my part.....if it were any other bill I'd have been on top of it, I just don't have the time to look at my 401k once a week
Eta....before the account was transferred Wells Fargo automatically took the payments out of my paycheck.....no action was required on my part.....if it were any other bill I'd have been on top of it, I just don't have the time to look at my 401k once a week
This post was edited on 12/22/13 at 4:08 pm
Posted on 12/23/13 at 11:27 am to dillpickleLSU
So I was told they received my auto pay form, but they don't know why it was never processed and why I was never contacted. They are researching what to do and they will call me back.
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