Consumer complaint received 2017-04-05
Company: COAST PROFESSIONAL INC
State: IN
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Having problems with customer service

Complaint:
My student loan was referred to Coast Professional Inc. by the Department of Education for rehabilitation. In XX/XX/XXXX after a lengthy telephone intake with a Coast Professional Inc. representative and manager, I entered into an agreement with that agency. The agreement was derived by me emailing most recent pay stubs, a financial disclosure form, and a declaration of vehicle ownership. The manager first attempted an excessive over XXXX monthly payment, but then calculated {$260.00} using my submitted documents that mimicked the previous department of education note ; however, that sum was still {$30.00} beyond my defaulted payment amount. Because I wanted to remedy my delinquent loan, I accepted the terms and began making timely, automated payment withdraws from my bank account. I also informed the Coast Professional representative and manager to leave me a voicemail should any problems arise, which they agreed. Those payments continued without issue until XX/XX/XXXX. At that 6 month mark, I received a XXXX envelop containing a second financial disclosure form with a " submit by XX/XX/XXXX '' due date. Confused, I contacted my intake Coast Professional Inc. representative who passed me to another where I was told my agreement was not officially validated, submitted documents were " too dark ''. When I challenged, I was advised " sometimes documents become too dark when transferred intra-company and to resend them via fax. I was also told they could n't leave voicemails due to privacy concerns. I faxed most recent check stubs and a duplicate financial disclosure form a week before XX/XX/XXXX. I then received a XXXX envelope containing a different agreement demanding a monthly {$350.00} retroactive to XXXX XXXX. The document stated the offer was null and void after 2-weeks where I would have to submit a third financial disclosure form. I immediately began investigating Coast Professional to find much disturbing information : the Department of Education accuses Coast Professional Inc. of " making material, inaccurate representations to borrowers trying to get their loans out of default '', " presenting inaccurate information for unacceptably high rates '', and " misleading borrowers about certain collection fees '' ( XXXX XXXX : XX/XX/XXXX ). Loans were halted from the Department of Education to Coast Professional, yet Coast was able to manage a work around to continue securing business. A few days later, a Coast Professional Inc. representative contacted me and said my faxed XX/XX/XXXX documents were " too dark ''. I again questioned with open eyes how sending documents using a separate media format would yield such a result. The Coast Professional Inc. representative switched directly into lowering the recent {$350.00} per month reassessment back to {$260.00}, I just needed to fax another declaration of vehicle ownership to " confirm that amount ''. The last declaration of vehicle ownership was " not recieved ''. She was supposed to contact me later in the evening for a correction and requested I be near a fax machine. That call never came. Predatory practice by Coast Professional Inc. is what 's evident to me. They are essentially holding my now in good standing account hostage in attempts to squeeze fees and further payments toward a {$5000.00} penalty they tacked to my account after assuming the rehabilitation process. They advised me once my account was rehabbed, any unpaid remainder of that fee would dissolve. This week of XX/XX/XXXX, I am shopping legal representation in addition to filing this complaint with the Bureau of Consumer Financial Protection.

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