Consumer complaint received 2016-09-02
Company: TRANSWORLD SYSTEMS INC
State: FL
Product: Student loan
Sub-product: Non-federal student loan
Issue: Dealing with my lender or servicer
Sub-issue: Received bad information about my loan

Complaint:
XXXX University, XXXX FL, is owned by XXXX Colleges. I took out a private loan through XXXX University called a XXXX Loan for approximately {$4600.00} on or about XXXX of XXXX to cover the part of tuition not covered through the Federal Student Loan program. XXXX switched the loan servicer from XXXX to UAS, LLC ( University Accounting Service ), PH # XXXX XXXX on or about XXXX XXXX of which I had no control over. 
The following is an excerpt of what has happened to XXXX Colleges : " XXXX and XXXX borrowers : On XXXX XXXX, XXXX, the XXXX announced new information about this relief. The Department has found that between XXXX and XXXX, XXXX XXXX, XXXX XXXX, and XXXX XXXX XXXX " XXXX '' XXXX, as well as XXXX, misrepresented job placement rates for many of their programs of study. 
The Federal Court ruled that ALL student debt for students attending XXXX Colleges/ XXXX University is to be fully discharged for those attending between XXXX and XXXX. XXXX responded to me the XXXX University Loan in question was transferred to University Accounting Services ( UAS ) and they are not the " loan servicer '' any longer. I did NOT request this change nor did I have any control over this change. I feel XXXX transferred this loan to UAS to avoid paying what was due to defrauded borrowers as they were aware of the lawsuit and impending decision. 
The following is an excerpt from the CFPB website .... 
" In XXXX XXXX, the CFPB sued XXXX XXXX XXXX XXXX for luring tens of thousands of students to take out private loans, known as " XXXX loans, '' to cover expensive tuition costs by advertising bogus job prospects and career services. The lawsuit also alleges that XXXX used illegal debt collection tactics to strong-arm students into paying back those loans while still in school. Under the XXXX loan program, nearly all student borrowers were required to make monthly loan payments while attending school. '' ... ... '' Provide more than {$480.00} XXXX in debt relief to XXXX victims : Although XXXX Colleges will no longer operate the schools, tens of thousands of students remain saddled with debt incurred under XXXX 's alleged predatory and illegal lending scheme. XXXX worked with the CFPB and XXXX to secure {$480.00} XXXX in debt relief for borrowers who took out XXXX high-cost private student loans. These students will see an immediate XXXX percent reduction in the amount that they owe on outstanding private student loans. " XXXX CollegeXXXX University promised me job placement when I was being recruited and never fulfilled their promise. I felt abandoned by their job placement / career services department and am still paying for this loan. I feel the 40 % reimbursement DOES apply to me. By XXXX stating they are washing their hands of this matter, as they say the loan was transferred to UAS, is not an appropriate resolution. I am a victim of fraudulent practices by XXXX College/XXXX UniversityXXXX Lending and now University Accounting Services ( UAS ) LLC, and request a 40 % reduction of the original Genesis loan amount of {$4600.00}. That amount equates to a {$1800.00} refund in accordance with the federal settlement. Furthermore, UAS violated federal and state laws by purchasing so-called " XXXX '' loans trying to collect on them. UAS knew at the time they purchased the loans that XXXX had been accused of engaging in misleading and deceptive tactics to enrolls students, and, in turn, pressure them to take out the costly loans.

Company response to consumer: Closed with explanation