Consumer complaint received 2023-08-11
Company: Nelnet, Inc.
State: OH
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
Nelnet Inc ( Nelnet Bank ) and subsidiaries XXXX XXXX XXXX agree to comply with their Company 's disclosure controls and procedures ( as defined in Rules 13a-15 ( e ) and 15d-15 ( e ) under the Securities Exchange Act of 1934 ). Furthermore, in accordance with responsibilities for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Accompanied by their managements report on Internal Control over Financial Reporting. Nelnet Inc and subsidiaries agreed to be responsible parties to their companies internal control over financial reporting. With acknowledgment that Nelnet Inc and subsidiaries are considered a public accounting firm registered with the XXXX and that they are required to be in compliance with with the U.S. federal securities laws and the other applicable rules and regulations of the Securities and Exchange Commission and the XXXX. Particularly, XXXX XXXX XXXX Chief Executive Officer ( Principal Executive Officer ) XXXX XXXX XXXX Chief Executive Officer ( Principal Executive Officer ) XXXX XXXX XXXX XXXX XXXX XXXX Chief Financial Officer ( Principal Financial Officer and Principal Accounting Officer ). All of which agreed Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated as XX/XX/XXXX. Per Nelnet Inc XXXX annual reporting each individual was aware and understood that they are subject to federal and state consumer protection, privacy, and related laws and regulations. Some of the more significant federal laws and regulations include : The Higher Education Act, which establishes financial responsibility and administrative capability requirements that govern all third-party servicers of federally insured student loans The Telephone Consumer Protection Act ( TCPA ), which governs communication methods that may be used to contact customers The Truth-In-Lending Act ( TILA ) and Regulation Z, which govern disclosures of credit terms to consumer borrowers The Fair Credit Reporting Act ( FCRA ) and Regulation V, which govern the use and provision of information to consumer reporting agencies The Equal Credit Opportunity Act ( ECOA ) and Regulation B, which prohibit discrimination on the basis of race, creed, or other prohibited factors in extending credit The Servicemembers Civil Relief Act ( SCRA ), which applies to all debts incurred prior to commencement of active military service and limits the amount of interest, including certain fees or charges that are related to the obligation or liability The Military Lending Act ( MLA ), which protects active-duty members of the military, their spouses, and their dependents from certain lending practices The Electronic Funds Transfer Act ( EFTA ) and Regulation E, which protect individual consumers engaged in electronic fund transfers ( EFTs ) The Gramm-Leach-Bliley Act ( GLBA ) and Regulation P, which govern a financial institutions treatment of nonpublic personal information about consumers and require that an institution, under certain circumstances, notify consumers about its privacy policies and practices The General Data Protection Regulation ( GDPR ), a European Union ( EU ) regulation which places specific requirements on businesses that collect and process personal data of individuals residing in the EU, and provides for significant fines and other penalties for non-compliance13 The California Consumer Privacy Act ( CCPA ) and California Privacy Rights Act ( CPRA ), which enhances the privacy rights and consumer protection for residents of California The Coronavirus Aid, Relief, and Economic Security Act ( the CARES Act ), which provides temporary relief measures for federal student loans held by the Department, as a result of the COVID-19 pandemic The Federal Bankruptcy laws Title 11 of the U.S. Code, which provides for the reduction or elimination of certain debts The Electronic Signatures in Global and National Commerce Act ( ESIGN ), which allows the use of electronic records ifthe consumer has affirmatively consented to such use and has not withdrawn such consent Laws prohibiting unfair, deceptive, or abusive acts or practices ( UDAAP ). Various laws, regulations, and standards that govern government contractors. Under the TCPA, plaintiffs may seek actual monetary loss or damages of {$500.00} per violation, and courts may treble the damage award for willful or knowing violations. Nelnet Inc also understood The Dodd-Frank Wall Street Reform and Consumer Protection Act ( the Dodd-Frank Act ) established the Consumer Financial Protection Bureau ( CFPB ) , which has broad authority to regulate a wide range of consumer financial products and services. Also agree to comply to the Securities Exchange Act of 1934 because Nelnet and subsidiaries or their Companies ( student loan servicing business ) would be subject to CFPB supervision and oversight authority. Nelnet Inc and subsidiaries also stated they understood if their companies do not follow these guidelines with applicable laws, regulations, or requirements, it could : ( i ) lose one or more of its licenses or authorizations, ( ii ) become subject to a consent order or administrative enforcement action, ( iii ) face lawsuits ( including class action lawsuits ), sanctions, or penalties, or ( iv ) be in breach of certain contracts, which may void or cancel such contracts. Nelnet indicated on page 15 of their 10 k sec filing that they understood that their companies higher education institution clients are subject to the Family Educational Rights and Privacy Act ( FERPA ) which protects my privacy of student records. Nelnet Inc knowingly admitted that their clients disclose certain non-directory information concerning their students to the company, including contact information, student identification numbers, and the amount of students credit balances pursuant to one or more exceptions under FERPA. Additionally, that they are indirectly subject to FERPA, which states that they may not permit the transfer of any personally identifiable information to another party other than in a manner in which an educational institution may properly disclose it. Furthermore, understanding that a breach of this prohibition could result in a five-year suspension of the Nelnet Inc and subsidiaries access to the related clients records. Nelnet Inc and subsidiaries may also be subject to similar state laws and regulations that restrict higher education institutions from disclosing certain personally identifiable student information. Per my understanding. Additional regulations include Nelnet Bank is subject to federal and state consumer protection, privacy, and related laws and regulations. In addition to having to comply with the majority of laws and regulations addressed in the Loan Servicing and Systems section, there are additional laws and regulations Nelnet Bank must follow. Some of the more significant laws and regulations applicable to Nelnet Bank include : Regulation W and Federal Reserve Act Sections 23A and 23B, which prevents losses to a bank resulting from affiliate engagement and transfer of a banks federal deposit insurance safety net to an affiliate Community Reinvestment Act, which encourages depository institutions to help meet the credit needs of the communities in which they operate Federal Trade Commission ( FTC ) Act, which prevents unfair or deceptive acts or practices and ensures consumer privacy ( including the Telephone Sales Rule, FTC Guides Concerning the Use of Endorsements and Testimonials in Advertising, and FTC Policy Statement Regarding Advertising Substantiation ) Regulation O, which places limits and conditions on credit extensions that a bank can offer to its executive officers, principal shareholders, directors, and related interests Right to Financial Privacy Act, which establishes specific procedures that government authorities must follow when requesting a customers financial records from a bank or other financial institution BSA/AML , which specifies the Banks commitment to compliance with the Bank Secrecy Act, Anti-Money Laundering ( BSA/AML ) laws and regulations, including the USA PATRIOT Act, that were enacted to require financial institutions in the United States to assist U.S. government agencies with detecting and preventing money laundering and terrorist financing. Also, subject to the FTCs and the federal banking regulators privacy and information safeguarding requirements under the GLBA. Per the 10k sec filing GLBA requires financial institutions to periodically disclose their privacy policies and practices relating to sharing such information and enables customers to opt out of the disclosing institutions ability to share information with third parties. Nelnet Inc agreed to remain in compliance and conformity of GAAP. Nelnet Inc and subsidiaries have not been in compliance and continue to fail to acknowledge, wrongdoing not only in reference to the Securities and Exchange Act of 1934, but also failed to comply FINRAS rules and guidance as a business. Nelnet Inc and subsidiaries has continued to voluntarily violate my privacy and security by not safeguarding my personal information. Instead they choose to share that information with third party vendors. As a whole this company has not lived up to their promises that they agreed to. This organization has violated my privacy rights as a consumer, and misled me by failing to maintain my security for sensitive consumer information, or caused substantial consumer injury. Nelnet Inc has violated Section 5 of the FTC Act, which bars unfair and deceptive acts and practices in or affecting commerce. Nelnet has violated numerous rules, regulations of the agreement of the Securities Exchange Act of 1934, Rule 405 of the Securities Act, Section 13 or Section 15 ( d ) of the Act, and implemented by the Sarbanes-Oxley Act of 2022 ( 15 U.S.C. 7262, the Dodd-Frank Act ), the Public Company Accounting Oversight Board ( PCAOB ) . I am aware that FINRA takes disciplinary actions against firms and individuals for violations of FINRA rules ; federal securities laws, rules, and regulations ; and the rules of the Municipal Securities Rulemaking Board. In addition to Sanctions including restitution, fines, suspensions, and in cases of serious misconduct, bars from the brokerage industry. Nelnet Inc and subsidiaries provided false and misleading information in reference to the my contract that Ive never agreed to nor signed with them. They obtained my information from a third party company that took over. Net lent has not been following the 80/20 rule. Your company is allowed to keep your 20 % and I make my 80 %. I did not authorize nor agree to your company giving my personal information to other companies. Privacy Act of 1974 ( 5 U.S. Code 552a ). The term record means any item, collection or grouping of information about an individual that is maintained by agency, including, but not limited to financial transactions and any information containing my name or identifiable number. Nelnet Inc and subsidiaries did not provide a conditional disclosure.No agency or company shall disclose any record which is contained in a system of records by any means of communication to any person, or to another agency, except pursuant to a written request by, or with the prior written consent of, the individual to whom the record pertains. unless disclosure of the record would be ( 12 ) to a consumer reporting agency in accordance with section 3711 ( e ) of title 31.

Again they need prior written instruction of the individual to whom it relates.

Section 3711 ( e ) of title 31 States ( 1 ) When trying to collect a claim of the Government under a law except the Internal Revenue Code of 1986 ( 26 U.S.C. 1 et seq. ), the head of an executive, judicial, or legislative agency shall disclose to a consumer reporting agency information from a system of records that a person is responsible for a claim if ( E ) the head of the agency has established procedures to ( iii ) get satisfactory assurances from each consumer reporting agency that the agency is complying with all laws of the United States related to providing consumer credit information ; Nelnet Inc have violated not only the Fair Credit Reporting Act but also the Privacy Act of 1974. According to PART 1016 - PRIVACY OF CONSUMER FINANCIAL INFORMATION ( REGULATION P ) 12 CFR 1016.1 Purpose and scope.

( a ) Purpose. This part governs the treatment of nonpublic personal information about consumers by the financial institutions listed in paragraph ( b ) of this section. This part : ( 1 ) Requires a financial institution to provide notice to customers about its privacy policies and practices ; ( 2 ) Describes the conditions under which a financial institution may disclose nonpublic personal information about consumers to nonaffiliated third parties ; and ( 3 ) Provides a method for consumers to prevent a financial institution from disclosing that information to most nonaffiliated third parties by opting out of that disclosure, subject to the exceptions in 1016.13, 1016.14, and 1016.15.

Every company should provide a privacy notice before they furnish any information to my consumer report. Per law 1016.4 Initial privacy notice to consumers required to Provide an Initial notice. It must provide a clear and conspicuous notice that accurately reflects. This was not presented to myself the consumer. This making this illegal. 1 ) Customer. An individual who becomes your customer, not later than when you establish a customer relationship, except as provided in paragraph ( e ) of this section; and ( 2 ) Consumer. A consumer, before you disclose any nonpublic personal information about the consumer to any nonaffiliated third party. 15 U.S. Code 6802 - Obligations with respect to disclosures of personal information ( a ) Notice requirements Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 6803 of this title. 15 U.S. Code 6805 - Enforcement ( a ) In general Subject to subtitle B of the Consumer Financial Protection Act of 2010 [ 12 U.S.C. 5511 et seq. ], this subchapter and the regulations prescribed thereunder shall be enforced by the Bureau of Consumer Financial Protection, the Federal functional regulators, the State insurance authorities, and the Federal Trade Commission with respect to financial institutions and other persons subject to their jurisdiction under applicable law. XXXX  and XXXX  are consumer reporting agencies and I am the Consumer. I have the right to make sure my private information isn't shared which is backed by 15 USC 6801 which states '' It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers nonpublic personal information. '' ( Furnisher of information to credit agencies ) is a financial institution by definition under that title. 15 USC 1681 section 604 a section 2 states that " In general Subject to subsection ( c ), any consumer reporting agency may furnish a consumer report under the following circumstances and no other : in accordance with the written instructions of the consumer to whom it relates. '' ( Furnisher of information to credit agencies ) the financial institution and the Consumer reporting agencies XXXX  and XXXX  do not have my consent to furnish this information and they surely do not have my written consent. 15 USC 6802 ( b ) ( c ) states that " A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless the consumer is given an explanation of how the consumer can exercise that nondisclosure option. '' Your company Never informed me of my right to exercise my nondisclosure option. Not only that 15 USC 1681C ( a ) ( 5 ) states '' Except as authorized under subsection ( b ), no consumer reporting agency may make any consumer report containing any of the following items of information Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years. '' This account is an adverse item they are reporting again without my permission which is against the law. 15 U.S. Code 1681s2 ( A ) ( 1 ) A states " A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. 15 U.S. Code 1681e states '' Every consumer reporting agency shall maintain reasonable procedures designed to avoid violations of section 1681c of this title and to limit the furnishing of consumer reports to the purposes listed under section 1681b of this title. Privacy Act of 1974 ( 5 U.S. Code 552a ) ly Educational Rights and Privacy Act ( FERPA ) The Family Educational Rights and Privacy Act ( FERPA ) is a federal law enacted in1974 that protects the privacy of student education records. FERPA applies to any-public or private elementary, secondary, or post-secondary school. 20 USC 1232g ( b ).

Company response to consumer: Closed with explanation