Consumer complaint received 2019-05-08
Company: Action Financial Services, LLC
State: CO
Product: Debt collection
Sub-product: Federal student loan debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
1 ) It was to my understanding that my student loan debt had been paid in full when I received a collection notice from Action Financial Services ( hereinafter referred to as AFS ). I dispute the validity of this debt, the proof furnished by AFS does not show the origin or history of said debt, nor were they able to provide any viable itemized ledgers. 
2 ) Somewhere between the dates ofXX/XX/XXXX andXX/XX/XXXXXX/XX/XXXXI received the first debt collection notice from AFS. ( See Exhibit A ) 3 ) On XX/XX/ I called AFC to inquire about said account, and at that time I officially requested proof of validity of the debt. 
4 ) OnXX/XX/XXXX I received documents from AFS ( datedXX/XX/XXXX ) ( See Exhibit B ). These documents acknowledged my request for validation of my obligations. Their letter stated Enclosed is a copy of the document ( s ) that will establish the validity of your debt. Included were 2 documents, the first document was a copy of their payment/financial history section ( See Exhibit C ). This report was irrelevant to me as I am unfamiliar and/or unaware of what the information on this report means. For example, there are codes listed in the transaction type, as there is no key, I am unaware as to what these codes refer to. There is also a column titled Debt Number, again I am unaware of what this information refers to. This document in no way shows how the information provided correlates to the debt AFS is attempting to collect. The second document provided was an unknown 3 page document ( See Exhibit D ). At the top of this document it refers to a Repayment Plan, this document is signed by me and dated XXXX. The information included in Exhibit D is barely legible and it is also incomplete ; there is a page 3, a page 2 and the last page is not numbered. The information provided in Exhibit D is inconclusive of were any debt originated, it also fails to provide any tangible proof of the debt that AFS is attempting to collect from me. 
5 ) OnXX/XX/XXXX I called AFS regarding the documents that were sent to me establishing the validity of my debt. I stated to the representative that what they provided was not sufficient proof of the validity of the debt they are trying to collect. During the course of my call, despite my clear agenda to gather more information, the AFS rep made multiple attempts to get me to set up a payment plan. The rep also told me that since I made prior payments on my student loans, that those actions show that I had and/or am accepting the validity of this debt. I stated that I have never made any payments to AFS therefore I have not and am not accepting the validity of this debt. When I asked for more information regarding the origin of this charge and stated that they hadnt done anything to show me what this debt was for. The rep informed me that the burden of proof is on the consumer, and that if I say that I paid this debt that it is my obligation to provide receipts, documentation etc. I asked the rep How am I to provide proof of payment etc. if I dont know what or where this debt came from? He was not able to provide an answer to that question. 
6 ) I would also like to point out a few key unsettling facts regarding said debt and the fines and fees being charged by AFS. 
a. Per the rep on XX/XX/ I was able to obtain the following breakdown regarding the balance they are attempting to collect on : i. {$19000.00} is being collected for Principle ii. {$20000.00} is being collected for Interest iii. {$7000.00} is being collected for Collection Fees b. Although I have been disputing this debt since the first notice was received, the interest keeps accruing at an alarming rate. I dont know what this rate is because I was never provided with any information from AFS regarding rates, terms, etc. On the date that the first AFS notice was rcvd the total debt was listed at {$46000.00} when I called onXX/XX/XXXX by balance was {$46000.00}. This means that in less than one month, and while I was in the process of disputing said debt, the total owed grew by {$130.00}. 

Your diligent review of this case is much appreciated. Thank you for your assistance.

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