But seriously, something doesn't seem right at all and I'm unsure on what to do.

For some quick back story for whoever missed it, originally my mom was going to take out a loan from her 401K. They told her that she had missed a payment back in like 2002 or something of around $250. They had never told her about it previously, but said she needed to pay it before taking out a loan. Ok, fine. So she was about to pay them and they were like "oh, actually you missed X payments and owe us $1400." Also, payments from over 10 years ago. Mom was flustered because we really need the money, so she borrowed it from my sister and sent it to them. We were supposed to get the loan this week, I believe.

Today she spoke to them again and they're telling her they made a mistake and she actually missed about 10 payments, also from 10 or so years ago, and owes them over $2000. She said that's complete bullshit has she definitely did not miss that many payments, and even if she did, they never informed her about it over the course of a decade. They're telling her that she can't prove she made those payments, so she needs to give them the $2000+ otherwise she can't touch her 401K. They were even so nice as to tell her they'll give her back the $1400 she gave them.

There's a ton of problems with this. First and foremost, my mom is the most punctual person I know when it comes to bills. There's no way in hell she missed 10 payments. One or two? Maybe. Shit happens, after all. But TEN?! Absolutely not.


Second, we need that money. We were relying on it as we have nothing at the moment. And apparently they're redoing an appraisal on my grandma's house for some reason for the couple who's supposed to buy it, so we have no idea what's going on with that and we'll probably end up getting less than we originally agreed on for it.

I told mom that she needs to seriously look into this because it sounds hella sketchy and like the people behind her 401K are bullshitting her. But she's incredibly flustered at the moment (something rare for my mom - she's the rock in the family) and called me crying about it because now she doesn't know how we're going to make rent. I feel awful. I keep trying to pick up more hours at work to help her but my paychecks just aren't enough.


I hate money.