Consumer complaint received 2021-02-03
Company: Account Control Technology, Inc.
State: AR
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
I have attached documents to support my case : It has been brought to my attention recently a collection agency, Account Control Technology has illegally charged interest on my federal student loans between the dates of XX/XX/XXXX to current. On XX/XX/XXXX, the Coronavirus Aid, Relief, and Economic Security Act became law, providing relief measures on Education Department owned federal student loans. This law has been extended to XX/XX/XXXX. Under this law, interest rate is 0 % for federal student loans, even those in default. My loans are owned by the U.S. Department of Education and serviced by XXXX ( refer to XXXX  page dated XXXX ) who is a loan servicer for the U.S Department of Education. 

Please refer to the XXXX page dated XX/XX/XXXX. This was the last paperwork that I received about my student loans until the week of XX/XX/XXXX. You will see at this time ( XX/XX/XXXX ) I owed {$39000.00} total with interest. I do understand there are 23 more days of interest being added to my loans till the Cares Act became law. In this 23 day period, there is no way over {$2500.00} dollars in interest could be added. 

Please refer to the ACT paperwork dated XXXX XXXX. According to ACT, {$2500.00} in interest has been added since XX/XX/XXXX. 
Account Control Technology is breaking ( 2 ) laws that I know of according to the Cares Act : 1. Collections of federal student loans owned by the Department of Education must stop under Cares Act.

2. Interest has been charged to my Student loans under the Cares Act, which is illegal.

I hope legal action can be taken against ACT and whoever else might be involved in this theft and deception immediately.

I have listed some of the Laws from the Cares Act related to my case. 

The following information was found on studentaid.gov. 

https : //studentaid.gov/announcements-events/coronavirus On XX/XX/XXXX, the office of Federal Student Aid began providing the following temporary relief on ED-owned federal student loans : suspension of loan payments, stopped collections on defaulted loans, and a 0 % interest rate. 
On XX/XX/XXXX, the Coronavirus Aid, Relief, and Economic Security Act ( CARES Act ) became law, providing for the above relief measures on ED-owned federal student loans through XXXX XXXX, XXXX. 
On XXXX XXXX, XXXX, the COVID-19 emergency relief measures were extended on ED-owned federal student loans through XXXX XXXX, XXXX. 
On XXXX XXXX, XXXX, the COVID-19 emergency relief measures were extended on ED-owned federal student loans through XXXX XXXX, XXXX. 
On XXXX XXXX, XXXX, the COVID-19 emergency relief measures were extended on ED-owned federal student loans through XXXX XXXX, XXXX. 
0 % Loan Interest Interest is being temporarily set at 0 % on federal student loans. Which loans does the 0 % rate apply to? 
From XX/XX/XXXX, through the end of the COVID emergency relief period, the interest rate is 0 % on the following types of federal student loans, but only if they are loans owned by ED : Defaulted and nondefaulted Direct Loans Defaulted and nondefaulted FFEL Program loans Defaulted and nondefaulted Federal Perkins Loans Defaulted HEAL loans Please note that some FFEL Program and HEAL loans are owned by commercial lenders, and some Perkins Loans are owned by the institution you attended. These loans are not eligible for this benefit at this time, but you can contact your servicer to ask about what benefits may be available.

To find out if your Direct and FFEL Program loans are owned by ED, visit StudentAid.gov/login. After you log in with your FSA ID, you will be on your StudentAid.gov dashboard. If you click on view details, you will be taken to your Aid Summary. If you scroll down on this page, you will see a section called Loan Breakdown. In your Loan Breakdown, if you see a servicer name that starts with DEPT OF ED, that servicer is for a loan that is owned by ED.

https : //studentaid.gov/manage-loans/repayment/servicers The following are loan servicers for loans that the U.S Department of Education ( ED ) owns. To find out who your loan servicer is, call the Federal Student Aid Information Center ( FSAIC ) at XXXX. 
Loan Servicer Contact XXXX XXXX ( XXXX  ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
XXXX XXXX/XXXX  XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX  XXXX  XXXX XXXX XXXX XXXX XXXX XXXXp ( also known as XXXX XXXX XXXX XXXX XXXX ) XXXX ( TTY : XXXX for the deaf or hard of hearing ) Understanding Loan Transfers In some cases, we need to transfer loans from one servicer to another servicer. If we transfer your federal student loans from one servicer to another servicer, your loans will still be owned by ED. The transfer to another servicer simply means that a new servicer will provide the support you need to fully repay your loans. 
Heres what you should expect if your loan is transferred to a new servicer : You will receive an email or a letter from your assigned servicer to inform you about the transfer.

You will receive a welcome letter from the new servicer after the new servicer receives your loans. This notice will provide you with the contact information for the new servicer and inform you of actions that you may need to take.

All of your loan information will be transferred from your assigned servicer to your new servicer, but you may only be able to see online information that covers the period since your new servicer took your loans over.

There will be no change in the terms of your loans.

Your previous loan servicer and new loan servicer will work together to make sure that all payments you make during the transfer process are credited to your loan account with the new servicer.

After you receive the welcome letter from your new servicer, you should do the following : Begin sending your loan payments to your new servicer. If you use a bank or bill paying service to make your loan payments, update the new servicers contact information with the bank or bill paying service.

Follow the new servicers instructions for creating an online account so that you can more easily communicate with the new servicer and keep track of your loan account.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation