Consumer complaint received 2020-01-19
Company: ECMC GROUP, INC.
State: CA
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
I was an XXXX  military XXXX between XXXX an XXXX. I was stationed and served my country in XXXX, XXXX. I completed my education at XXXX University, XXXX XXXX then raised XXXX children including XXXX XXXX XXXX adoptions. 
In XXXX of XXXX I set up a payment plan with ECMC for ongoing automatic payment arrangement of {$500.00} per month ongoing on my student loan. At the time, I disputed the balance and did not agree that it was accurate but knew that I needed to make payments. I set up an automatic payment method. That payment was processed through ECMC ten times between XX/XX/XXXX and XX/XX/XXXX when ECMC stopped the automatic payments with no notice to me. In XX/XX/XXXX I telephone ECMC requesting information on why the payments had stopped and that I wanted to update my records. I was told there was no record to update as they had no record of my loan or a payment issue. 
In the meantime, my family moved out of the state of XXXX to XXXX. In XXXX, I received notice through my employer in XXXX  that ECMC was garnishing my wages. ECMC knew where I was employed in XXXX yet had not tried to telephone me nor had I received a notice Prior To Wage Withholding. I disputed the garnishment immediately and believed that they were garnishing on an incorrect debt amount. I sent numerous letters requesting a hearing, disputing the garnishment, the rehabilitation and all the fees they had added onto the loan. ECMC denied my requests for a hearing and proceeded with the garnishment. 
I eventually learned that ECMC had rehabilitated my student loan without my consent. This is why ECMC stopped the ongoing payment arrangement and automatic payment I had made perfectly with them. We also learned that because I knew nothing of this new loan it was now in default and ECMC had added on new fees for that default, large fees for something I never authorized and after I was making perfect payments. What originated as a {$32000.00} XXXX Ive probably paid more than that already ) loan was then in XXXX {$190000.00}. 
I was told by ECMC there was nothing they could do to help me or about the fees. I searched everywhere I could trying to find some help and eventually found an Ombudsman from the Department of Education. With the help of the Ombudsman, ECMC agreed that some of the fees were not accurate. According to their accounting it should be {$140000.00}. This included fees in the amount of for the rehabilitation and new loan default I was completely unaware of and had not authorized. 
In XXXX ECMC noted that my balance should have been {$89.00}, XXXX. See page 2 of letter dated XX/XX/XXXX from ECMC, paragraph 3. The economy crashed, I was not paid by my employer at that time and therefore could not make a large payment on my student loan at that time. I have a large family with XXXX kids. ECMC did not offer to me an alternative to reduce my payments at that time. I of course went into default. 
Four years later, in XXXX, ECMC said your loan was repurchased by XXXX XXXX for {$180000.00}. Even according to ECMCs accounting, that is a different of {$90000.00} in fees in five years time for a defaulted loan when I was making perfect payments. ECMC did drop the balance and fees down when reviewed by the Dept of Education Ombudsman to {$130000.00}. See page two of letter date XX/XX/XXXX, paragraph five. That means, after an adjustment during review by the Department of Education Ombudsman, ECMC charged me a fee of {$42000.00} for their error in selling my loan to XXXX XXXX without my consent. The Ombudsman from the Department of Education said he couldnt help with review of the rehab issue because ECMC said that they had my signature on file for a rehabilitation that authorized them to allow XXXX XXXX  to repurchase my loan even though I said that wasnt possible. 
I notified ECMC that I wanted the loan rehabilitation they completed without my consent to be honored since the one they did wasnt authorized. The request was left unanswered. I sent numerous requests to ECMCs legal team requesting a hearing to go over the disputed fees and my right for a loan rehabilitation. My requests for a hearing were denied and my last request received no response. 
On XX/XX/XXXX I learned from my employer that ECMC had given them an Order Of Withholding dated XX/XX/XXXX for {$260000.00}. No validation notice or itemization on how ECMC arrived at this new balance was provided to me. This was the first I had heard from ECMC for quite some time though they had my place of employment and work number. I immediately disputed the garnishment and requested a hearing. Notice was sent by fax of my request for hearing and dispute of the balance. ECMC confirmed receipt of my dispute on XX/XX/XXXX. I spoke with them numerous times and continue to do so. My wages were garnished a few days later and are still being garnished. I have received no response to my request for a hearing on the garnishment and dispute sent to ECMC on XX/XX/XXXX and confirmed as received by ECMC on XX/XX/XXXX as of todays date, XX/XX/XXXX. 
Since I became aware of ECMCs intent to garnish in XX/XX/XXXX, I have spoken to their representatives numerous times about the fees charged for a loan rehabilitation, sale to XXXX XXXX  and default that I was not aware of at the time and did not authorize. I was told by ECMC these fees were added by the Department of Education and there was nothing they could do to reduce those fees. However, on XX/XX/XXXX when I spoke with the Department of Education I was told ECMC purchased the loan for $ XXXX XXXX dollars ( for $ XXXX loan debt ). There is a balance of {$0.00} with the Department of Education. I was also told by the Department of Education that all of the fees ECMC has said were coming from the Department of Education are actually coming from ECMC. 
I believe at the most my student loan balance should be is what it was prior to ECMCs error in rehabilitating my loan without my consent, selling it to XXXX XXXX  and charging fees for default on a loan I did not authorize and was unaware of at the time. Even according to ECMCs accounting from letter dated XX/XX/XXXX that would have been {$89.00}, XXXX, not the $ {$260000.00} they are garnishing for at this time. 
I believe ECMC has shown me unfair and deceptive debt collection practices by : Converting my payment arrangement to loan rehab without my consent. 
Charging exorbitant fees on default loan I did not authorize Stopped payment arrangement without my consent Refused right to hearing on balance and fees Moving forward w/ garnishment I requested hearing on, disputed balance and was not verified. 
Failing to provide itemization on how ECMC arrived at {$260000.00} Garnishment on {$260000.00} which was not validated & was highly disputed Misleading by saying fees added on loan were from Department of Education I was paying on this loan regularly and want to pay on this loan but would like to be treated fairly, have the ability to REHABILITATE this loan like ECMC did without my consent, come to agreement on a balance that is fair and stop garnishment immediately due to the fact that the balance garnished was not validated. I believe ECMC has treated me unfairly and shown deceptive collection practices. Ive voiced my concern with them and have been told my only option is to complete a loan consolidation for the full amount of {$260000.00} and dont know what to do. This situation has caused my family undue stress and hardship and is affecting my ability to continue supporting my daughter so that she can stay in college. I don't know what to do. I hope you can help me.

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