Consumer complaint received 2019-08-11
Company: F.H. Cann & Associates, Inc.
State: CA
Product: Debt collection
Sub-product: Federal student loan debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
US Department of Education attempted to collect a debt for a student Loan in XXXX that originated through XXXX XXXX loan # XXXX which then turned into XXXX. 
The original loan was {$42000.00}. of which I paid {$25000.00}. After several attempts to reduce the promise payment of {$160.00} monthly moved to nearly {$500.00} monthly. I felt like this was literally extortion. I moved the then {$54000.00}. ( loan that has {$37000.00}. in interest added since I took it out ) to a Federal loan. I made several calls to lower my payments as I was divorced in XXXX every time I asked for a lower payment, I was told I would find out when I got my next statement, however the payments kept getting higher although my home income had decreased by {$1600.00} monthly. I also inquired several times regarding how to request loan forgiveness as XXXX XXXX was all over the new regarding a potential class action lawsuit against XXXX XXXX as the student loans were predatory and overcharges students by 44 % between XXXX. My son attended XXXX XXXX, I was the parent who took out this loan in I believe the summer of XXXX. I never received any information of how to follow through with loan forgiveness. I couldn't afford the payments, couldn't get forgiveness information. News broke in XX/XX/XXXX that a settlement was reached for XXXX XXXX XXXX XXXX. The company agreed to forgo collections on approx $ XXXX in old accounts receivable in the last 30 years at over 100 campuses and they will write off $ XXXX in accounts receivable. XXXX XXXX took advantage of students and parents. XXXX XXXX closed over 100 campuses including the campus in XXXX where my son attended. On XX/XX/XXXX my XXXX XXXX # XXXX balance was {$60000.00}. The statement I opened late by myself on XX/XX/XXXX included a request for review and verbiage regarding US Department of Education Application for Borrower Defense to Loan Repayment and that if I did not reply collections activities would begin. I immediately downloaded and completed the request for review and sent all paperwork and news articles regarding XXXX XXXX via USPS on XX/XX/XXXX as I should not have to continue to fight to repay a loan of a school that closed due to predatory loans. I have included the USPS certified mail receipts. Three days later, yesterday, XX/XX/XXXX I received a letter from F.H. Cann & Associates indicating my account had gone to  collections and now my balance is {$83000.00} adding " interests and costs '' of an additional {$22000.00} on a disputed loan that should have never gone to collections. The application for borrower defense to loan repayment was sent to US Department of Education - Borrower Defense to Repayment at XXXX XXXX  XXXX, XXXX KY XXXX and US Department of Education XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX. I should not have to pay the remainder of the original {$42000.00}. loan, of which {$25000.00}. was initially paid to XXXX XXXX, nor the now {$66000.00} in interest and fees attached by XXXX XXXX, XXXX, US Department of Education and F.H.Cann & Associates ( located at XXXX XXXX XXXX XXXX XXXX XXXX XXXX. MA XXXX ). The remaining balance in full should be forgiven.The remaining balance if full should be forgiven. If I was originally charged {$42000.00} which court documents indicate was an overcharge by 44 % I should have only paid {$23000.00}. I already paid XXXX. This nightmare has been going on for nearly a decade. 
It is my understanding that when a debt is in dispute the debt can not be sent to collections. This debt has been in dispute since XXXX. 
Lastly, let it be know that at no time was I contact to participate in a Class Action lawsuit regarding this matter nor have I received any relief of any kind toward this not in for form of monies nor reduction in balance, interest or fees.

Company response to consumer: Closed with explanation