Consumer complaint received 2019-02-23
Company: AES/PHEAA
State: TX
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Problem with customer service

Complaint:
I have paid the student loan in full when I signed the promissory note, the promissory note is treated the same as cash and PHEAA made me the trustee the minute they sent e coupons to repay ( pay again ) for a loan that I already funded with my signature. They double dipped and got paid twice as i paid out of pocket using debt instruments ( checks, federal notes, money orders ). I am requesting the full receipt so that I can properly file taxes. 

From : The Office of Executor- the XXXX XXXX :  XXXX , Estate. ( Recipient ) RE : Request 1099-OIDs Collateral Interest Income Withholding Under Internal Revenue Service  ( hereafter, IRS ) Regulations, policies, instructions and publications, you, XXXX XXXX, Chief Executor Officer/Trustee, is require on demand and notice to file 1099-OID Interest Income Withholding and give to Estates authorized representative/requesting person, the recipient copy. 

The details for reporting Original Issued Discounts ( OID ) / Security Interest Income are provided for the Business/Bank Association in the following Regulations and Publications : IRS Instructions Publications a. Codes of Federal Regulation : 26 CFR 1.1671-5 ( c ) & ( d ) Reporting for widely held fixed investment trusts ( WHFIT ), b. Publication : General Instruction for Forms 1099, 1098, 5498 & W-2g Section M Statements to Recipients ( Borrower, Debtors, Donors, Insured 's, Participants, Payer/Borrowers, Policyholders, Students,  Transferors, or Winners on Certain Forms ). 
c. Publication : 1212 OIDs, page 7, Nominees d. Publication : Instructions for Forms 1099-INT & 1099-OID Specific Instructions for Form 1099-OID. Section OID : Reporting OID TITLE 12 USC 412 : COLLATERAL REQUIRED IS OID REDEEMABLE Under the Federal Reserve Act of 1913, banks members/associations via Federal Reserve Banks and the Treasurer of the United States in trust is holding our original signed bonds ( Title 18 USC 8 : obligations of the U.S. ) as collateral. Therefore, the Security Interest is reported as taxable Federal Withholding to be filed as gross interest income, Tax Class 5 ( IRM 6209, Section 2 ). 

Below procedures performed on Debt Instruments ( 18 USC 8 ) by Association/bank : Emergency Banking Act, 73rd Congress, session I, Chapter 1, Title IV Sec. 401.

Sec. 401. The Sixth paragraph of Section 18 of the Federal Reserve Act ( 1913 ) is amended to read as follows : " Upon the deposit with the Treasurer of the United States, ( a ) of any direct obligations of the United States or ( b ) on any notes, drafts, bills of exchange, or bankers ' acceptances acquired under the provisions of the Act, any Federal reserve bank making such deposit in the manner prescribed by the Secretary of the Treasury shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, duly registered and countersigned. When such circulating notes are issued against the security of obligations of the United States, the amount of such circulating notes shall be equal to the face value of the direct obligations of the United States so deposited as security ; and, when issued against the security of notes, drafts, bills of exchange and bankers ' acceptances acquired under the provisions of this Act, the amount thereof shall be equal to not more than 90 per cent of the estimated value of such notes, drafts, bills of exchange and bankers ' acceptances so deposited as security. '' Penalties for not filing Redeeming Notes on Demand and Notice : a. Statutes at Large, Volume 13 pages 113, Sec 46 thru 50 - fail to redeem circulating notes upon demand notice. Public Notary to protest with Comptroller of the Currency for associations penalties.

b. 18 USC 1621 Perjury generally With that said, XXXX XXXX CFO/Trustee, please respond within 14 days from the date of this  letter. 

If any of the procedures and/or laws above is incorrect then note the deficiency and submit changes with Codes, Slip laws or Statutes at large as evidence of correctness.

Company response to consumer: Closed with explanation