Consumer complaint received 2019-07-19
Company: COAST PROFESSIONAL INC
State: WA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
In XXXX of XXXX, I setup a monthly auto payment with Coast Professional to rehabilitate my delinquent student loans. In XXXX of XXXX, my scheduled payment failed to process. I did not receive any notification that payment had failed. I believed payments were still processing as usual, since I was not informed otherwise. In fact, I received monthly statements from Coast Professional and those did not indicate there were any missed payments, outstanding balance, or any other abnormalities with my account. It was only brought to my attention that there was an issue when I received notice from the Department of Education indicating that my wages would be garnished. 

Ive contacted both Coast Professional and the Department of Education to rectify this and resume payments, yet both indicate that its up to the other organization to approve me continuing my loan rehabilitation without having to start the process over entirely. I spoke directly to XXXX XXXX, a Consumer Care Manager at Coast Professional, and was told that the Department of Education could add a note to my account regarding me remaining in the rehabilitation program. I contacted the Department of Education and they made note on my account yet when I contacted Coast Professional again, they are now saying that it must be a direct order from the Department of Education. I continue to get the run around with nobody seemingly able or willing to adequately assist with this issue. Everyone seems to understand that this was an error and that I did not receive notification, yet Im still told I will need to start the rehabilitation process over anyways. Additionally, Coast Professional accepted payment from me on XX/XX/XXXX, which I made to show that my intent is to remain consistent and that the payment failure was due to an unforeseen issue and not a lack of funds or any other outright failure to pay and comply with the rehabilitation terms. 

I have again followed up with Coast Professional and spoke with XXXX XXXX, another Consumer Care Manager. I was informed by him that any attempt to reach me would have been from XXXX. This is the same number I saved in my contacts when first setting up my loan rehabilitation, at the advice of the representative for my account. I did not receive any calls from this number. I was also informed that Coast Professional did not leave a voicemail and that no mail was sent to notify me of a payment issue. Not even the monthly mailed statements show any missed payment. This is an unfair debt collection practice and it is very misleading to send monthly correspondence via mail and not inform consumers of any account issues. I believe this is predatory and not in the spirit of honest, clear communication with consumers. Actions such as this directly result in a collection agency being able to retain a borrowers account in their portfolio by recycling them through the rehabilitation program multiple times.

Company response to consumer: Closed with explanation