Consumer complaint received 2017-09-22
Company: COAST PROFESSIONAL INC
State: NC
Product: Debt collection
Sub-product: Federal student loan debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
For the past several years, my wages have been garnished to settle an outstanding student loan debt with the Dept. of Education. The garnishment/debt collection is being handled by Coast Professional , Inc. I called Coast in XX/XX/XXXX to check my balance and see when my balance should be paid in full via garnishment ; the balance should have been taken care of in XX/XX/XXXX. In XX/XX/XXXX, my wages were no longer being garnished due to the balance being paid in full. 

InXX/XX/XXXX, I received a letter stating there was a {$600.00} balance on my account and due to non-payment since XX/XX/XXXX, I now owe an additional {$180.00} in late fees. I contacted Coast on XX/XX/XXXX to inquire about the balance and the late fees. I was informed the {$600.00} was not part of my initial garnishment and was a result of interest accrued on the balance during the time of garnishment payments. I asked why I was never made aware of this additional balance of {$600.00} and was advised Coast had attempted to contact my employer to arrange additional garnishment for the new balance of {$600.00} and had received no response from my company. Due to non-response from my company, late fees have now been applied and total {$180.00}. I asked that the late fees and penalties be removed, as I was not made aware of the balance nor the attempts to reach my company and I did n't feel I was responsible for those fees. I was offered a settlement agreement of {$630.00} to be paid in full in 90 days. While it was n't the full amount of the {$180.00} in fees being removed, I agreed to that amount. I was advised a settlement letter would be sent to my home and, once signed and remitted, I had 90 days to pay the {$630.00} settlement. 

Today,XX/XX/XXXX, my paycheck was nearly {$150.00} short. I checked my stub and see my wages are again being garnished, after I verbally agreed to a settlement and have been waiting 2 weeks on a settlement agreement in the mail, which has never arrived. I called Coast to see why I was being garnished when I was waiting on my settlement agreement and they advised any garnishment amounts would be credited toward the settlement amount once the signed agreement was received. I advised I still have not received the settlement agreement. They offered to fax the agreement, but my office fax is electronic and goes to the entire firm and I do not want my personal finances shared with my company, so I declined the fax. Coast outright stated this was a new balance and not part of the initial garnishing. I asked that they waive late fees and penalties because no one made me aware there was an additional, separate balance of {$600.00}, which was not included in my initial garnishment. I was advised it was not Coast 's  responsibility to inform me of a balance on the account, which I disagree with. If there is a new balance that was not part of the previous debt I was paying, and my company was not responding to the requests for garnishment on the new, separate balance, why was I never made aware? I did receive the aforementioned letter inXX/XX/XXXX, 5 months after the new debt was due, and took immediate action to rectify the situation by calling and offering a settlement. Had Coast informed me of the new balance from the time it was due in XXXX, I would not be charged these additional late fees and penalties. Coast advised they would not waive any of the fees, as I did not pay the new, separate balance, even though I was not made aware of said balance. The manager I spoke with was a bit surly from the outset and tried to talk over me and was not helpful ( feel free to listen to the recorded call ). As she continued to talk over me and tell me it was my fault I was being charged fees on a balance I did n't know existed and was not informed of, my calm demeanor became more escalated and upset and I disconnected the call as to not become too emotional.

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