Consumer complaint received 2017-01-18
Company: Delta Management Associates, Inc.
State: VA
Product: Debt collection
Sub-product: Federal student loan
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
My name is XXXX XXXX of XXXX XXXX XXXX XXXX, Virginia. My phone is XXXX or XXXX. This all started when I received a letter in the mail from Delta Management XX/XX/XXXX stating that they were attempting to collect on my XXXX defaulted student loans. My loans had defaulted due to the fact that I had been in an accident with my XXXX causing me to be out of work because I was recovering from my injuries for several months. At the time, I was an XXXX. I was no longer able to work for myself, so I lost my XXXX. During this time, my wife divorced me because I was n't making enough money for her. I had to sell our home and move because she wanted the money and then I had child support payments for XXXX children as well. I had completely lost everything that I loved and I had very little money. I also lost my car. I had to file bankruptcy and try to get back on my feet. I do apologize that I allowed my loans to go into default, but I tried to reach out for help with no avail. When the letter came from Delta Management, I called and asked how I could get my XXXX loans out of default XX/XX/XXXX. The Delta Management rep told me that I had to agree to have my payments automatically deducted from my paycheck and that after 6 months of consistent payments they will take my XXXX loans out of default. So, I agreed and also I agreed to pay 4 payments each month instead of 1 payment in the hopes that I would decrease my balance owed quicker and show my willingness to pay. However, although I have been paying voluntarily, consistently 4 payments each month since XX/XX/XXXX, I have not had my loans taken out of default. I am a military veteran and I am currently in the process of purchasing a home for myself and my new wife, but the loan officer pulled my credit report and showed me that my XXXX student loans are still on my credit report in default status. I was made aware that I can not get a VA Loan unless my loans are out of default. I have paid what I agreed to with Delta Management and am still paying, yet nothing on their end has changed. I feel that I was defrauded by Delta Management and lied to by them just to get my money. I also notice that they have been taking a large amount of each payment as interest and collection agency fees. This amounts to a lot of money as I pay them each week. Is this accurate? Is it legal for Delta Management to not take my loans out of default? I have called repeatedly since XX/XX/XXXX,XX/XX/XXXX and have been told the same thing. I have asked for a supervisor, sent written disputes through their website, sent emails through their website and also the Department of Education with no response from either. although, the website says they will respond within a few days. Also, every time I called the Department of Education Debt Resolution Dept, they told me that I had to talk too Delta Management. Please help me because I have been trying so hard to get this fixed that I am going to call and write my Senator, Governor, Congressman and President of the United States. I ca n't afford for my VA loan to be rejected. I promised my new wife that I would provide a home for us, but I ca n't do it without my Va Loan. This treatment that I received is wrong! I have been deceived! Please help! 

Thank you, XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation