Consumer complaint received 2018-08-27
Company: GREAT LAKES
State: VA
Product: Debt collection
Sub-product: Federal student loan debt
Issue: False statements or representation
Sub-issue: Impersonated attorney, law enforcement, or government official

Complaint:
I had a federal tax return offset to pay for an outstanding student loan. I first contacted XXXX to get payment history bc I disputed the amount owed. They agreed to send my records in regard to the loan via mail. They informed me that they were only the servicer of my loan but it was held by a company called " Great Lakes '' and provided me with this phone # XXXX. I called the number provided and spoke to a representative for great lakes. They could provide me no more information than XXXX could. It was at this point that the situation became legally problematic. I asked the rep why a federally subsidized loan was being held by a private company. She said that they weren't a private company. I replied, so Great Lakes is a government agency? She said yes we collect student loan debt for the federal government. I replied ok, but you are a private company collecting debt. She said no, we are a nonprofit contracted by the government. Again I pointed out that being a contractor still makes you a private company. I mentioned the truth in lending act and how presenting yourself as a government agency when collecting a debt is a crime. She said she didn't understand that and stated that they are a 3rd party agency contracted to collect federal student loan debt and asked if I needed anything else. I asked to speak to a supervisor, I was first offered to have someone call me back. I asked to instead be connected and I would wait on hold. The supervisor picked up almost inmediately and I explained the situation. They were silent on the other end of the line for an extended period. I asked if someone was there, and got a reply of yes what else can I help you with. I said it seems like your representative needs some training on regulations bc they are presenting you as a government agency. He again tried to make a vague claim of government agency. I asked him the same questions about the private nature of the company as I had to the rep. I explained that presenting a private company as an agency of the govt is a crime and the fact that both a rep and a supervisor presented it that way made me believe that they are intentionally ambiguous about this fact and that was a bigger problem legally. He told me that he wasn't a legal expert and I could take that up with their legal department. I asked to be connected to their legal department and was hung up on. If it was just a poorly trained rep who made a mistake I would understand and chalk it up to a need for better training in regards to the relationship between the company collecting federally subsidized debt and being a government agency. However the fact that a supervisor also tried to present it to me that way and disconnected my call when I asked to file a complaint with the legal department makes me believe that their policy is to willfully make the people from whom they are collecting debt believe that they are a federal agency. I have a background in XXXX and have held an XXXX license I'm very aware of the law and what constitutes a willful violation. My concern is that this is a purposeful policy intended to deceive and relies on debtors ignorance of the position a collector is in.

Company response to consumer: Closed with explanation