Consumer complaint received 2016-12-13
Company: Lazega & Johanson LLC
State: GA
Product: Student loan
Sub-product: Non-federal student loan
Issue: Can't repay my loan
Sub-issue: Can't get flexible payment options

Complaint:
My daughter and I signed for XXXX private student loans ; the biggest mistake of our lives. We currently have XXXX of the XXXX loans still in-house and in good standing with XXXX. Our problem started when the first set of loans were due. We paid each month, on time, the full amount requested. We continued this payment process for the first 6 months - 9 months and suddenly, one day, we received a notification from XXXX stating that we had defaulted on some of the loans. I was n't concern, because I knew we paid our loans, this had to be a mistake and that our payment must have been misapplied. This was very shocking as we NEVER received a past due notification, and each month we logged online to make the payment in full, no loans were showing past due, ever. 
After contacting XXXX, they informed us that we should have been specifying how to apply the " Full Payment '' made ; therefore, all of the 'Full Payment ' made were applied to the loans at their discretion. We were new to paying loans and thought if we were paying the full amount requested, that it would apply appropriately. 
At this point, the amount that XXXX was indicating that we were behind, was more than we could pay and just like that, the loans defaulted and sent out on what we call 'goose chase ' collection agencies. These XXXX loans bounced among different collection agencies, making it very difficult to lock in on any type of commitment with these agencies. When we finally got the chance to communicate with XXXX of the collection agencies, they requested unrealistic payment amounts, asking for the full amount/and or very large monthly amounts, that we could not commit to paying. 
At one point, we did not even know who had the loans and each time we reached out to XXXX to find out the status of these loans, they were not able to provide us with any information. We were treated unfairly in reference to the XXXX loans I 'm writing about, loans purposely placed in default, knowing that we made the full amount to cover these loans. 
In a nutshell, the XXXX loans finally landed with a Law Firm who immediately filed a law suit against my daughter and me XX/XX/2016, no phone call, mail, or any form of contact, other than being served through the courts. We had our Prepaid Legal Service to call and send a letter to them asking for a payment arrangement on the first loan to prevent from going to court and judgement placed. As of today, they never got back with them regarding any type of arrangement. The same firm then sent the XXXX loan to court. I reach back out to our Legal Service and was assigned someone else to handle that one and they did the same thing, called and sent a letter to work our a payment arrangement. We sent a proposal on what we could do as well on the XXXX loan, the lawyer handling that one did respond ; however, they would not accept that proposal and asked for double the amount that we informed that we could pay, due to the other XXXX loans that we are currently paying. We offered to pay $ XXXX monthly, until our finances get better, they said {$500.00}, for one loan. 
This firm is the only one that would not work with us and was so eager to sent to the courts to final judgement against us. We are struggling, but we make payments on all other loans, and have made some of these as well, online just to show good faith. 
We are only asking to be allowed to make payment arrangements on these XXXX loans like we have been granted to do on all other loans we currently have. 
We have not been treated fairly by this Law Firm and we feel like we are wrestling with very knowledgeable giants and absolutely powerless when it comes to fairness and knowing our rights as consumers.

Company response to consumer: Closed with explanation