Consumer complaint received 2022-12-12
Company: CITIZENS FINANCIAL GROUP, INC.
State: WA
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
XXXX XXXX XXXX XXXX settlement services on XX/XX/XXXX. They pulled in my Citizens bankXXXX private student loan account, without my permission. They knew and could see on paper that this account had a balance above {$75000.00} yet set me up for default on this account as they instructed me to NOT MAKE PAYMENTS. They stated that they could not speak to Citizens Bank and that they could not advise me on the potential for defaulting. 

I subsequently reached out XX/XX/XXXX about my concerns about the program via XXXX account portal. I expressed that I was worried about all the phone calls and would like to cancel my account with them and withdraw from their program. They instructed me to ignore the phone calls as this is part of the process. They told me not to make payments to lenders and that if I did, they can not settle my debt and that I would end up owing more as interest has ben accruing. They persuaded me at the time with scare tactics not to withdraw from the program and stated this is just how it works and they understood my feelings. Via email I was instructed to manage calls from creditors in in the following way : 1. Ignore phone calls from the creditors 2. If I did speak with a creditor, mention my hardship, but do not let on that I am working with XXXX and 3. Do not respond to creditor scare tactics when threatened with adverse action by creditors ignore it, as this will only delay my XXXX program. 

While I was reviewing the Legal Security Agreement they had told me to sign. I was receiving reminder emails to sign the document. The email stated This reminder will be re-sent every day until completed. This is a poignant example of the pressure they put on me throughout my involvement with the program. 

Contacted them by phone multiple times about concerns : XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. 

XXXX presented themselves as experts with posts about student loans on their social media pages and numerous articles about student loans ( federal and private ) and repayment on their website. They knew that by not making payments as outlined in contract with the lender, it is broken and that there are few to no options to pull oneself out of default once the student loan is in default. XXXX misrepresented themselves as knowledgeable. In an article on their website : Why a Private Student Loan Can Be a Really Bad Option, written by XXXX themselves, they state You should be doubly sure that you would be in a position to make the minimum payments on your private student loan, even if life doesnt go as you had planned. Yet they pulled my private student loans into the settlement plan without my asking them to. 

XXXX refused negotiate/speak with my lenders and creditors on my behalf until I had put enough money away in escrow for them to negotiate. However, when presenting me with an Authorization to Communicate, they defined it in writing that this will authorize us to speak AND negotiate with your creditors on your behalf. On the Authorization itself it was expressed as hereby XXXX XXXX XXXX relief ( XXXX ) express authorization and/or permission to speak as an agent with the undersigneds creditors and to negotiate It goes on to relate all the ways in which XXXX can contact and work directly with the creditors. It was also instructed in an email to change your address and phone number with creditors to ours. 

I did eventually call Citizens Bank regarding my private student loans out of fear of default. The representative for citizens bank asked me to have XXXX contact Citizens bank to explain their role. When I called XXXX and requested they contact Citizens bank, I was told by customer support that we dont do that. We only contact your creditors during negotiation. I was instructed to cease contact with my creditors. 

I pulled one of my credit accounts from the program as I was able to settle it myself. When I expressed this to the XXXX, the woman told me that I should not have done that as they could have saved me more money if I would have waited a few years for money to build up in escrow. 

I made one final call to XXXX XX/XX/XXXX, recorded conversation. Asking them to do something to help me out of default since they work with private student loans. There was no remorse and they told me that unless I re-enroll with the program, they will not help me any further. 

They also claim to stop creditors from calling incessantly, however, this was never done. Creditors were calling me, my family, and individuals I work with. I ultimately had to withdraw from the program and get a lawyer to have the creditor calls stopped. 
Disclaimers say that they do not provide advice, but articles they have written on their website state : we also focus on educating consumers across XXXX on how to best manage their money. Our posts cover topics around personal finance, saving tips, and much more. This was withheld from me when I became fearful and felt threatened financially by both XXXX and my private lender Citizens Bank. 

When I pulled out of XXXX, I communicated fully with XXXXCitizens bank. I explained for a second time what had happened and my desire/willingness to get back on track as prior to XXXX I was in very good standing. I made my normal payment XX/XX/XXXX prior to the involvement of XXXX. When I withdrew I called to let my lender know that all I could pay on that day XX/XX/XXXX was {$150.00} as I had nothing more than that after paying rent that was due on the 1st. I set up another payment for the day I got paid ( which is only once per month ) for {$420.00} as this is what I was told I needed to pay. This was prior to my loan defaulting. Later in XXXX, I received a bill from Citizens bank stating that I owed {$2800.00}. I had just made a payment days prior and told that they would allow me to make payments to catch up. When the bill came, I assumed it was sent prior to my call with the lender. So I had made a payment for XXXX and Citizens Bank placed me into default XX/XX/XXXX and neglected to inform me that this was happening. I was under the impression that if I was communicating and making payments, I would avoid default. As the process was in place for default, no payment was made that month. 

I called in XXXX to set up regular payments. I explained the hardship in my personal and financial life as well as the fiasco with XXXX. They told me to pay {$750.00}, which I did on XX/XX/XXXX. They told me that they could not set up automated payments at the time and I would have to call each month to make a payment. I called on XX/XX/XXXX and made a payment of {$430.00} with a confirmation # XXXX, but was told just today XX/XX/XXXX that they weren't able to process that payment so they initiated the process to send my debt to a third party collection agency. As I was unaware that this was happening. I called on XX/XX/XXXX to make a payment of {$500.00} and was able to set up auto pay at that time. Last week I received a letter from Frontline Asset Strategies claiming that they now own my debt. I was confused and submitted a letter disputing the debt as I have been making regular payments and each time have been assured that I am ok. I spoke with an actual person on XX/XX/XXXX and they did not tell me that the debt was sent to collections. 

I received an email from XXXX XXXX XXXX  this morning stating a settlement offer is on the table that would change my debt from {$74000.00} to {$44000.00} as long as I make the lump sum payment by XX/XX/XXXX. My partner and I initiated XXXX loans to pay the settlement and I called Citizens Bank to discuss the transfer to collections as well as the settlement. The person I spoke to said that I was still enrolled in automated payments that they would be collecting and was not aware that my debt had been sold. When I asked about the settlement, she spoke to her supervisor and then came back and told me that there is no settlement and that they just accidentally sent my debt to collections. She told me that they will be taking the debt back from XXXX. Meanwhile, a call to XXXX  resulted in them saying that the settlement is on the table until Citizens takes the debt back, which could be tomorrow, next week, who knows? I have been jerked around by Citizens for so long and there has been SO much unprofessional miscommunication. They direct me one way, I go that way, then because of an error on their end, I am punished for it. They placed my loan in default and sent me to collections with zero communication. 

I am so incredibly confused and have no idea what to do because now that XXXX and Citizens challenges have ruined my credit, I can't get any loans to pay any part of this. And because the loan is in default/collections/who knows ... no bank will touch this debt to refinance. Please give me some sort of direction. I will provide bank statements, emails, phone records, mail I have received. Whatever you require to substantiate this. I just want to pay my loan. I was in a very tough position after a divorce, becoming head of household and a single mom. I have outrageous student loan debt because I didn't let poverty stop me from getting an education. I am recently back on my feet and I just want to pay my bills. I am very upset with " services '' provided by BOTH XXXX XXXX XXXX and Citizens Bank. This is exhausting. Thank you so much for your time and consideration.

Company response to consumer: Closed with explanation