Consumer complaint received 2019-05-07
Company: Nelnet, Inc.
State: NE
Product: Debt collection
Sub-product: Federal student loan debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
Please attach to complaint ID XXXX, I found additional documentation to support my complaint. 

I would like to add to my complaint and ask for a formal investigation into the accounting and collection practices of Nelnet ( Loan account number XXXX ) and XXXX XXXX XXXX. 

In XXXX I defaulted on my student loans ( see doc # 1 included ) due to my husband being out of work while receiving treatments for XXXX, which he has since passed away from after a long 10 year battle. While in default I was harassed and treated unfairly by one of the Private Collection Agencies hired by the US Department of Education. This agency was XXXX XXXX XXXX XXXX, who is listed in the Office of Inspector Generals audit report from XXXX of XXXX. I do believe the harassment I received was intentional and malicious because they believed they could treat me this way as I was a woman. I did not have the wherewithal needed to fight this type of collection tactics since I was the sole support to my family as my husband was fighting for his life. 

After months of harassing calls at work and home, I made an agreement ( see doc # 2 notes from harassing calls ) with XXXX to participate in the FFELP Loan Rehabilitation Program ( see doc # 3 for agreement ). I was concerned and worried what might be done if I did not comply with their demands. The threatening calls were so intense I made the agreement even though our financial situation had not improved and my husbands XXXX had XXXX. I was in dire need of help and did not have anywhere to turn. I started making payments in XXXX of XXXX. Please see enclosed document for agreement. 

In XXXX of XXXX my student loan was rehabilitated and purchased by XXXX XXXX on XX/XX/XXXX ( see doc # 4 ). When looking over my loan amounts they did not match. XXXX document states I owed {$75000.00} on XX/XX/XXXX and Nelnet shows my loan balance as {$73000.00}. Enclosed are both of these documents for you to review. On XX/XX/XXXX I had to dispute the 18.50 % collection fee XXXX tried to charge me, which I never agreed to. Please see enclosed document # 5 ( 4 pgs ) and fax report showing it was sent. I do show on my Nelnet print off a credit of {$13000.00} which I am assuming was the fee they tried to charge me. This is a guess on my part as I never received any documentation stating this. I have not been able to find where the {$6500.00} in payments I made to XXXX was applied to my loan balance. As you will see Nelnet does not provide an amortization of my loan payments and balance ( see doc # 6 5pgs ). How can this be acceptable and/or legal to not provide this to a consumer? 

This leads me to my second complaint I need assistance with how all my payments for the last 7 years have all went to interest. I have enclosed my payment history ( doc # 6 ) from Nelnet to show from XXXX, XXXX to XXXX, XXXX I have paid {$39000.00} and this entire amount has went to interest only. I work in the financial industry and this can not be fair and appears to be highly deceptive in their lending practices. 

I called XXXX on the evening of Tuesday, XX/XX/XXXX and asked if they could explain this to me. After over an hour on the phone, I asked for all of my documents to be sent to me so I could investigate and file a complaint against them. I explained I wanted all the documents showing all the fees and interest charged since XXXX. Please note after my call ( and only after my call ) to XXXX my XXXX payment does show {$130.00} to principle. Again very confusing! 

I took responsibility for my loans and wanted to pay back what I owed and worked with the collection agency to get it rehabilitated. In my call on Tuesday night, XX/XX/XXXX, I asked for copies all the fees and interest I was charged when I was in default and where does it show the {$6500.00} in payments was applied in XXXX. I was instructed Nelnet will only release this information if I get a subpoena. How can this be legal to ask borrowers to pay for fees and interest that were not disclosed to them and no documentation will be provided without court documents. 

I graduated from the University XXXX XXXX at XXXX in summer of XXXX with a loan debt and promissory note for {$33000.00}. I deferred my student loan for 5 years after graduating as my income would not cover my loan payment at that time. I did a consolidation in XXXX with my payments starting in XXXX with my new consolidated loan balance of {$42000.00}. If you look at my history I have paid on this loan since XXXX of XXXX with payments over the last 17 years adding up to {$90000.00}. I have paid approximately 3 times what my original loan was back in XXXX. As you can see on my statement XXXX claims I still owe {$63000.00}. This would total {$150000.00} ( 5 times my original loan ) and that does not even include additional interest on the {$63000.00} they say I still owe. How can this be fair and legal? I have more than paid this loan in full and it should reflect this. 


I am looking for help or guidance in dealing with these deceptive practices and what legal rights I have. If needed I will contact a lawyer to file a case and to request a subpoena to view the documents from the collection agency as I believe they will show illegal activity being done by this agency and lender.

Company response to consumer: Closed with explanation