Consumer complaint received 2019-07-23
Company: AES/PHEAA
State: MD
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
American Education ServicesXXXX XXXX ( AESXXXX ) have engaged in a pattern of mismanagement of my student loans. AES/XXXX have miss placed multiple times the documents related to the income sensitive/based repayment plan. They have not assumed any responsibility for the misplacement of the documents and placed the blame squarely on the borrower. 

Also, AES/XXXX have presented contradictory/incomplete information and withheld important information that impacts the borrowers decision-making process. 
They have engaged in deceitful and aggressive tactics when attempting to collect extra payments beyond the income sensitive/based repayment plan. And engaged in retaliation when a financial beneficial arrangement to AES/XXXX was not reached to settle the effects of their mismanagement. 

Thought this process, AES/XXXX have financially profited from their mismanagement, misplacing of documents, and questionable predatory business practices. 

Misplacement of Documents In early XX/XX/XXXX, after completing the online forms, the income sensitive/based repayment plan package was submitted by regular mail to AES/XXXX. On follow up phone call, AES/XXXX claimed that it was not received. 

In early XX/XX/XXXX, the first fax with the income sensitive/based repayment plan package was successfully sent. On follow up phone AES/XXXX agent could not confirm that the form was received. AESXXXX Agent requested that the form be sent to a different fax number than the one listed in the official form. 

In late XX/XX/XXXX, a second fax was sent with the same the income sensitive/based repayment plan package. On follow up phone call it was confirmed by the AESXXXX XXXX the paperwork was received and was complete. 

Through this process kept sending payments ( which AES/XXXX deemed insufficient ). The same package was sent to Fed Loan with no issue. 

By the first week of XX/XX/XXXX, on follow up phone call, AES/XXXX denied having received the second fax. The same the income sensitive/based repayment plan package was sent by USPS certified mail. During the XXXX call the borrower was blamed for the misplaced papers. 

It took 4 attempts and USPS evidence, before AES/XXXX was forced to acknowledge the receipt of the documents. On the XXXX phone call, a supervisor stated that having receipts of successful delivery of a fax and confirmation of receipt by an AES/XXXX was not enough evidence. 


Access to Information 1. AES/XXXX Agents have withheld important information on targeted payments. The concept of sequence targeted payments was not discussed only after the borrower refused to accept a forbearance. 

2. AES/XXXX Agents have failed to fully explain discrepancies on the different letters and emails that are been sent. Where different amount due are stated. 


Deceitful/Retaliatory Practices 1. During the late XXXX call, AES/XXXX   imposed a forbearance. Under duress, the borrower had to accept the terms and conditions of a forbearance. As AES/XXXX did not offer any other option and threatened with adverse actions if the forbearance was not accepted. 
By the end of XXXX, the loans were already behind payments and a new forbearance was in order. Consistently AES/XXXX try to impose forbearances and no other option is offered. 

2. After the XX/XX/XXXX phone call ( on a Friday ), when a financially beneficial arrangement to AES/XXXX was not reach, AES/XXXX  engaged in retaliatory behavior. The loans were immediately sent to collection. On the next Monday first call from a collection agency was received. 
Also, after the XXXX phone call ( on a Friday ), other loans that were reported as missing payments. This in spite that the borrower has been paying double the amount that is monthly due. 

3. AES/XXXX Agents notes on the phone calls do not fully reflect what transpire during those calls. Key elements of the phone call are omitted and are sanitized to place the blame on the borrower of any mistake. 


To finalize This mismanagement has resulted in affecting the payment capability of the borrower. AES/XXXX processes are not transparent and their processes are so convoluted that confuse the borrower. To add insult to injury, AES/XXXX refuse to recognize that the borrower has shown good faith, made payments beyond what is required by the income sensitive/based repayment plan and try to keep communication with their agents. The collection agencies contracted by AES/XXXX   have engaged in questionable business practices. 

AES/XXXX keeps showing bad faith in their dealings with the borrower causing undue financial hardship to the borrower.

Company response to consumer: Closed with non-monetary relief