Consumer complaint received 2021-03-29
Company: ACS Education Services
State: WV
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, WV XXXX XXXX SSN XXXX To Whom It Concerns, I have received communication from the IRS that Conduent Education Services submitted a form 1099C for me in XXXX. Although I have had issues with student loans since the XXXX I have never had any business dealings with Conduent Education Services. 

My student loan issues ( whoever services these as it seemed to change quite often ) could never provide any of the following : The Promissory Notes from XXXX, XXXX, XXXX, and XXXX. ( Note that one year I did not have a student loan, but it was a long time ago and Im not sure if it was XXXX or XXXX ). I need this because it shows interest rates etc. 

Transcript of all payments made on the loans which I started repaying in XXXX. Just so you know, the bank could never supply this They never took any legal action to collect the amount they said was outstanding because they did not have the documents and I had paid the loans off. 

I only borrowed {$12000.00}. I paid on it for years with a low interest rate, as you will see if you find the documents. Because I sat out of school for a year it was set up as two loans. I paid on both but they continuous made mistakes and applied all the money to one loan. Then would contact me stating one or the other loan was going to default because all the payments were applied to the other loan instead of to both. I would have to contact them every time and get it straightened out.

Eventually, I grew tired of the hassle and said give me a payoff and I will just pay both loans in full. They sent me a payoff amount which was as much as I had originally borrowed. I had paid timely for over 8 years on a XXXX loan. Constantly I contacted them trying to work this out. I requested transcripts of the account just to be told that they only have that for 1 year. 

Around XXXX, I sat had any outstanding balance calculated independently based on the information I had and sent them a cashiers check for the balance marked with both account numbers PAID IN FULL. 

I would check my Credit Reporting and find it was on my credit report every few years. I would report it the credit reporting agency and it would drop off again. Finally, in XXXX, I found it on credit again and demanded it be removed. I was told by whoever put it on there that this time it was resolved. 
Relieved to finally resolve the issue, I disposed of these records during my last move in XXXX as far as I recall. 

It appears that Conduent Education Services with whom I never had any prior dealings, submitted a XXXX for {$10000.00} for XXXX to the IRS. Implying this was a forgiven debt with tax consequences. It was not. I did not owe this money. I did not receive the 1099 as it was not mailed to my current address. 

This is not a loan that was forgiven and should have tax consequences. This was a loan that the bank screwed up and could not account for my payments and has an erroneous principal amount. 

Here is the only information I have : Conduent Education Services XXXX XXXX XXXX XXXX NY XXXX Account Information XXXX Form XXXX C {$10000.00} My research of Conduent Education Services shows it was closed in XX/XX/XXXX. I am unable to contact Conduent Education Services at address given on the 1099 to resolve my potential tax issues with the IRS. 

This issue is so very old I do not know any of the following : who was the business that I talked to in XXXX? Where did I bank when I was making payments in the XXXX and XXXX? It is ridiculous to assume I would have records from 30 years ago. I have done my best at every turn to deal with this issue as timely as humanly possible. Even 30 years ago, this issue was very important to me not only for the credit implications but because defaulting a debt would endanger my employment with the IRS as it is against our code of Ethics. 

My research of Conduent Education Services also revealed that it was previously knows as Affiliated Computer Services ( ACS ) and had a contract with the Department of Education to service federal student loans. 

In XXXX and XXXX, the U.S. Consumer Financial Protection Bureau ( CFPB ) investigated ACS. Some student loans werent properly updated and had incorrect principal balances. 

This is the exact issue I was raising with the administrator of my student loans since the late XXXX. I paid on time for years and the principal was never reduced, and no explanation could ever be given. There were no late fees etc. 

At their direction of IRS, I wrote to Conduent Education Services at the address given. It came back as Not Known at Address ; Unable to Forward.

Now the IRS has sent me a 90 Day Proposed Assessment Notice for this 1099.

I have had to deal with the credit implications and aggravations of this for years ( since the late XXXX ) and now it has been turned in as a 1099 which affects my tax liabilities.

Not only does this result in a tax balance that I do not owe and should not have to pay, I work for the IRS and having an increase in taxes that I did not put on my original tax return will result in disciplinary actions against me. Also having a report of a forgiveness of debt on that 1099 will result in disciplinary action against me.

There is great harm to me by Conduent Education Services financially, professionally, and emotionally.

I need this 1099 recalled by Conduent Education Services immediately. 

I would also like a case summary of the XXXX and/or XXXX case ( s ) against ACS to support my issues with the Internal Revenue Service. 

I greatly appreciate your time and assistance in resolving this

Company response to consumer: Closed with explanation