Consumer complaint received 2024-01-19
Company: IOWA STUDENT LOAN LIQUIDITY CORPORATION
State: IA
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
I have filed multiple CFPB complaints on this issue, that supporting documentation will be attached. 

I had a series of private school loans through Iowa Student Loan/Aspire . The loan breakdown is as follows : XXXX  XXXX Loan Date ) - XXXX XXXX {$2000.00} original balance XX/XX/XXXX ( Loan Date ) - XXXX XXXX {$6600.00} original balance XX/XX/XXXX ( Loan Date ) - XXXX XXXX, {$8500.00} original balance As provided in the attached documentation, Aspire issued me a 1099c for the XX/XX/XXXX & the XXXX  loans, they issued this 1099c to me in XXXX ( attached. ) After a long delayed battle with Aspire, they FINALLY updated the 1099c to reflect the correct indefinable event code. As XXXX XXXX points out in her response to CFBP, she notes that Aspire had right to write off this debt as it was time barred and Aspire was in legal right to do so because of their " administrative policies. '' However, in XXXX Iowa Student Loan/Aspire filed small claims against me for the XX/XX/XXXX loan, which held the EXACT same characteristics as the other two loans - it was time barred and had not received payment in over 10 years. 

XXXX XXXX is yet to identify how/why the XX/XX/XXXX loan could have further action taken against it in XXXX yet the remaining XXXX loans ( XXXX XXXX XXXX ) bearing the SAME account standing was not written off, but further pursued for payment. What " policy '' does XXXX XXXX have that supports that choice that is in legal compliance of state and federal law? 

To quote XXXX XXXX 's response, " XXXX XXXX signed a promissory note and agreed to the terms as outlined in the credit agreement when she applied for the private education loans. Copies of the signed promissory notes and credit agreements were sent to XXXX XXXX in XX/XX/XXXX notifying her that the balance on the loans had been written off, but we are resending them directly to her again along with a copy of this response. The credit agreements were issued under Iowa law, and they clearly identify the provisions for default. Under Iowa law, the statute of limitations for collecting on unpaid debt that stems from a written contract is 10 years.Because payments were not received from XXXX in that time period, the debt went out of statute. As a result, Aspire Servicing Center wrote off the loans on XXXX XXXX XXXX At that time, the IRS required the issuance of the 1099-C. The 1099-Cwas provided to both the IRS and XXXX XXXX for theXXXX tax reporting season. XXXX XXXX has stated that Aspire Servicing Center has refused to provided documentation of the reason for the 1099-C. The1099-C is used for the cancellation of debt as stated on the form itself and on the XXXX form issued by Aspire Servicing Center. XXXX XXXX contained student loan as the debt description and provided the date of the identifiable event in XXXX XXXX.

This further support that Aspire/ISL took action - by issuing me a XXXX 1099c to hurt my credit by placing me in arears with IRS yet fails to state what policy allowed them to do so, yet take legal action on debt that was older?

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation