Consumer complaint received 2021-06-22
Company: Texas Guaranteed
State: TX
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:
My complaint revolves around the severe financial, personal, and career consequences I incurred due to false and misleading information provided to me by Texas Guaranteed. For years I was making payment on loans of about $ XXXX with a monthly payment of {$300.00}. Around late XXXX I started falling behind as I received a severe paycut at my job of about 20 % due to loss of bonus at XXXX XXXX contacted Texas Guaranteed numerous times and each time they said I had already exhausted all options and there was nothing I could do. I was still paying though even if late. Eventually I could not keep up and tried to find another solution as lates were starting to impact my credit rating. No one ever returned my call. A few months went by and I finally gathered a few XXXX dollars by selling off personal belongings. I called to try and make payments and I was denied. They wanted ALL payments that were past due. This was not possible as I had just a few XXXX not thousands of dollars available. As a consequence I was advised to wait a few months because they had another solution for me. Their " solution '' come to find out in late XX/XX/XXXX was that they had filed for a WAGE Garnishment! They immediately started taking {$650.00} per month which was over XXXX my regular payment of {$300.00}. I called again pleading for help. They said this was the only route to reinstate a good standing and then conned me for MORE money. They said I had to pay another {$120.00} per month penalty as well. So all in for almost a year they took $ XXXX per MONTH. As previously advised I was already lacking enough funds prior to any of this. This lead to defaulting on all my credit cards as I simply didnt even have any money after rent and student loans and barely any food to eat. After a year they stated congrats you are back on track, we will remove garnishment. However they had ADDED nearly $ XXXX as a " Collection Fee '', So aside from wrecking havoc to my credit forcing me to default, losing XXXX lbs due to near starvation, losing apartment and living in my XXXX they ADDED $ XXXX after I had already been garnished/paid nearly $ XXXX! This damage continues to this day. My student loan is now being serviced by another but it reflects an XXXX of over 130 %. This loan has been negatively amortizing even though Ive been paying for nearly XXXX decades!!! I need all this investigated, fees/penalties removed, lates corrected and compensation for ancillary impacts such as credit decline, increased cost of borrowing, homelessness ( due to forced garnish ), and overall lying and stealing tens of thousands from me. 

A previous response ignored all my questions, concerns, and allegations. I am very well aware of how a loan amortizes and dont need a lesson there. I want answers as to WHY I was continually lied to, misled, and misguided. Their direction led to me being placed in this position. Their wrongdoings caused me severe financial, credit, and mental impacts. These impacts have been compounded since then. Just as the interest has compounded due to the addition of the collection fee due to their purposeful misdirection. Please provide EVIDENCE of the contrary, pull the call recordings, the notations, and my written confirmations. If you are not able to provide this, then XXXX demand restitution, the fees removed, the compounded interest removed, and additional compensation for the ancillary impacts that at this moment are incalculable. If you cant calculate it then please advise me so that I seek legal counsel. This is the last opportunity I am providing to make this right for me before I present this to our multiple media outlets and newly elected officials that see the new form of slavery that is student loan debt and the malicious behavior of the master servicers that only give direction in their best interest.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation