Consumer complaint received 2019-09-25
Company: AES/PHEAA
State: VA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
Regarding, my school loans with Fed Loan Servicing has been the worst experience of my life. Had I known in hindsight that this would be the most negative effect in my life I would not have attended college. Unfortunately, I was not able to choose who my loan servicing would be throughout the duration of my education. After, attending the summer of XXXX courses I spoke with Fed Loan servicing and informed them I had lost my job and was going through a financial hardship. At, this time I was informed I would be placed into a forbearance period. However, this information was not updated correctly by Fed Loan.Fed Loan reports they had not heard from me at all. Fed Loan even reported they made contact with me which, I have not been provided proof they in fact did. Fed Loan reported 126 late payments 60/90/120 days for the year of XXXX through XX/XX/XXXX as delinquent. Upon, applying for a mortgage my FICO reports were pulled and I saw this information. After, reaching out to Fed Loan several times speak to several agents I have been provided with unsatisfactory totally ABYSMAL customer service. The people I have spoken with are rude and not knowledgeable at all of anything. All representatives give different information that is not correct. They put you on hold and act like they are really trying to help you and dont. They are laughing and eating in your ear as if they are not dealing with people financial history which is serious to me. Despite, me calling I have written several letters and no correspondence I have received back. Friday XX/XX/XXXX around XXXXXXXX XXXX. EST I spoke with a representative named XXXX who was very condescending over the phone regarding my account. I explained to her my situation, her response : ITS YOUR FAULT YOU DIDNT CONTACT US YOU SHOULD HAVE KNOWN YOU DID NOT PAY YOUR LOANS! She said this upon me explaining my situation. She also stated that plenty of letters was sent out to me that I had never received. She also, stated that the letters came back because of incorrect address. As, I explained to her due to this its reflected negative payment history. Once, again she was very rude in her explanation and made me feel worst about my situation. I then requested to speak with a manager, and she put me on hold for five minutes and disconnected the line. She also did not call back. I have requested GOODWILL adjustments from Fed Loan and they all have been denied. The first thing I have been told from XXXX ( Manager ) rep id number XXXX that those adjustments cant be done. However, this is not true because the Department of Education does allow one GOODWILL adjustment. The advisory opinion states that the Section 623 ( a ) ( 2 ) of the FCRA addresses the duty to correct and update information by furnishers, or persons who furnish information to consumer reporting agencies ( CRA ) such as credit bureaus. In particular, this section requires a person that has furnished to a consumer reporting agency information that the person determines is not complete or accurate to promptly notify the consumer reporting agency of that determination and provide any information needed to make it complete and accurate. Thus, on its face, this provision requires a furnisher to provide corrected or updated information to the consumer reporting agency that it had reported to originally. This duty extends to all student loan accounts reported to CRAs, regardless of whether they were accurate at one point, because the section requires the furnisher both to update accounts as well as to correct. However, Section 623 ( a ) ( 2 )  clearly shows that the reports must be updated/corrected regardless of whether they were accurate at one point. XXXX This clearly shows that Fed Loan is being in non-compliance with Section 623 ( a ) ( 2 ).  Since, Fed Loan does not want to be in compliant of the laws then I will move on to my next step of action. This company feels that they dont have to abide by the laws because there is a Federal Student Loan servicing. Fed Loan has hindered me TREMENDOUSLY from getting a mortgage, a career in my field, and also refinancing my loans with XXXX XXXX XXXX XXXX.

Company response to consumer: Closed with explanation