Consumer complaint received 2017-12-14
Company: TRANSWORLD SYSTEMS INC
State: NM
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:
The original student loan in the amount of {$20000.00} was discharged in a Bankruptcy hearing in XXXX ( see attached ). Even though this debt was discharged, the federal student loan corporation kept harassing me to make payments on it and accept the debt. At the time, I was working as a XXXX for the XXXX XXXX and was afraid it would impact my career, so I opted to pay on the loan to stop the constant harassment. This was the era when there were very few to no consumer protection rights regarding debt collector harassment tactics. Even the Department of Education utilized many debt harassment tactics that would be considered unjust and illegal in todays world. Over the years, I made payments and at certain periods of time the account went into a deferred status and I stopped making payments for a period of time after my lawyer told me that this debt was fully discharged in bankruptcy court and that I should not have been making any payments to the Department of Education or any other entity claiming to own this account. This account eventually fell into a default status and that is when the Department of Education  brought in XXXX XXXX XXXX to aggressively go after the garnishment of my wages. I elicited the help of a lawyer ( XXXX XXXX XXXX ) to represent me to the Department of Education regarding the aggressive tactics taken by XXXX XXXX XXXX and their attempt to garnish my wages. After in-depth research into my case, my lawyer crafted a letter that explained how the bulk of the original student loan was dischargeable under Bankruptcy Law ( see attached letter ) and that XXXX XXXX should not have been allowed to garnish my wages. XXXX acquired this account from XXXX which in turn took it over from an aggressive and now defunct debt collector named XXXX  XXXX XXXX who were hired by the Department of Education to garnish my wages as previously mentioned. XXXX is currently showing a total current balance of {$70000.00} on a {$20000.00} original student loan that I have paid approximately {$85000.00} to {$90000.00} towards over the years since its inception, but have not been given any credit for by them. XXXX refuses to acknowledge the amounts that were garnished ( 15 % net income ) from my paycheck from XXXX to XXXX which totaled in the amount of {$49000.00} ( see attached ), not to mention the thousands of dollars I have already paid to date on this account. I feel XXXX has been highly deceptive and fraudulent with how they have represented this account. They have refused to allow me any options for the repayment of it at a reduced rate until such time that I could get someone at their company to hear my case. I have provided them documentation showing that I have paid this account in full, however they refuse to acknowledge the documents I have provided nor do they respond to any requests for an audit of this account. In addition, XXXX is actually being more underhanded and fraudulent with this account by adding onto the balance the unsubstantiated unpaid interest that they supposedly inherited from XXXX. I have also requested a lower interest rate ( currently 8.25 % ) and they have stated I am not eligible with no further explanation as to why? There are currently several lawsuits against XXXX for the very same fraudulent and underhanded practices that I have mentioned above.

Company response to consumer: Closed with explanation