Consumer complaint received 2017-06-14
Company: National Enterprise Systems, Inc.
State: FL
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
In XXXX XXXX 2017, I was notified via my employer of a wage garnishment I was not aware of. I did research in an effort to find out exactly what had occurred. I went to the payroll department to find a letter, not a court order for garnishment of wages. In the letter, the following Federal law was quoted : 102-164. Upon further inquiry, it is a company called National Enterprise Systems. They were garnishing me without notification or any means of making arrangements to settle the debt. I have never heard of this company. Do I have students loans? Absolutely. I am currently in contact with those debtors. The amount of money they are taking out has caused grave consequences to my family. I am currently not able to provide for my children, I have XXXX and I also help my elderly parents which I have been providing assistance to. They are garnishing close to {$500.00} per month. I am not able to pay my rent in XXXX. I received a copy of the letter today from my employer thinking it was a court order which gives consumers the right to respond and settle the debt. It is not a court order, but a letter which I have attached. I am unable to survive with this kind of money being deducted from my account without sufficient notification to settle this dispute.
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The letter is attached which was obtained today. I contacted them with the number retrieved from the letter trying to find validity.
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Based on the law they quoted, the following did not occur. : ( 2 ) the individual shall be provided written notice, sent by mail to the individuals last known address, a minimum of 30 days prior to the initiation of proceedings, from the guaranty agency or the Secretary, as appropriate, informing such individual of the nature and amount of the loan obligation to be collected, the intention of the guaranty agency or the Secretary, as appropriate, to initiate proceedings to collect the debt through deductions from pay, and an explanation of the rights of the individual under this section ; ( 3 ) the individual shall be provided an opportunity to inspect and copy records relating to the debt ; ( 4 ) the individual shall be provided an opportunity to enter into a written agreement with the guaranty agency or the Secretary, under terms agreeable to the Secretary, or the head of the guaranty agency or his designee, as appropriate, to establish a schedule for the repayment of the debt ; ( 5 ) the individual shall be provided an opportunity for a hearing in accordance with subsection ( b ) on the determination of the Secretary or the guaranty agency, as appropriate, concerning the existence or the amount of the debt, and, in the case of an individual whose repayment schedule is established other than by a written agreement pursuant to paragraph ( 4 ), concerning the terms of the repayment schedule ; ( 6 ) the employer shall pay to the Secretary or the guaranty agency as directed in the withholding order issued in this action, and shall be liable for, and the Secretary or the guaranty agency, as appropriate, may sue the employer in a State or Federal court of competent jurisdiction to recover, any amount that such employer fails to withhold from wages due an employee following receipt of such employer of notice of the withholding order, plus attorneys fees, costs, and, in the courts discretion, punitive damages, but such employer shall not be required to vary the normal pay and disbursement cycles in order to comply with this paragraph ; ( 7 ) if an individual has been reemployed within 12 months after having been involuntarily separated from employment, no amount may be deducted from the disposable pay of such individual until such individual has been reemployed continuously for at least 12 months ; and ( 8 ) an employer may not discharge from employment, refuse to employ, or take disciplinary action against an individual subject to wage withholding in accordance with this section by reason of the fact that the individuals wages have been subject to garnishment under this section, and such individual may sue in a State or Federal court of competent jurisdiction any employer who takes such action. The court shall award attorneys fees to a prevailing employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the employee, or order such other remedy as may be reasonably necessary. Based on the law provided in their letter, not court order the following information is stated : I was never contacted via phone, mail, email or any other entity. If they were able to acquire my employment information, surely they could have contacted me if they had no way of contacting me. None of this occurred. I am not able to pay basic bills with this wage garnishment. I 'm am behind on basic needs after 3 garnishment deductions. Help is desperately needed in this matter.
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( b ) Hearing requirements A hearing described in subsection ( a ) ( 5 ) shall be provided prior to issuance of a garnishment order if the individual, on or before the 15th day following the mailing of the notice described in subsection ( a ) ( 2 ), and in accordance with such procedures as the Secretary or the head of the guaranty agency, as appropriate, may prescribe, files a petition requesting such a hearing. If the individual does not file a petition requesting a hearing prior to such date, the Secretary or the guaranty agency, as appropriate, shall provide the individual a hearing under subsection ( a ) ( 5 ) upon request, but such hearing need not be provided prior to issuance of a garnishment order. A hearing under subsection ( a ) ( 5 ) may not be conducted by an individual under the supervision or control of the head of the guaranty agency, except that nothing in this sentence shall be construed to prohibit the appointment of an administrative law judge. The hearing official shall issue a final decision at the earliest practicable date, but not later than 60 days after the filing of the petition requesting the hearing.

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