Consumer complaint received 2016-10-26
Company: Utah System of Higher Education
State: TX
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Received bad information about my loan

Complaint:
I am a victim of being informed that my student loans from XXXX of {$21000.00} were being bought from XXXX. I had a 1 year forbearnace from XXXX, and XXXX never informed me that they became my new service provider. 

In addition, it was not until XXXX XXXX 2016 when I became aware that I was in repayment and all type of confusion happened with XXXX. Utah sloppily wrongfully advised me that I was behind and used deceptive trade practices and provided wrong forms for me to fill out for a unemployment deferement request. 

I Explained to the XXXX that I am a displaced employee and have had employment since XX/XX/2016. I requested for the unemployment deferment form be sent to me atand sent it back in my purse substantiating that I was registered with the state employment office, the Texas Workforce Commission. I called in on XX/XX/2016 to the XXXX who is servicing my loan comma and was told on XX/XX/2016 at XXXX has been received at XXXX a customer service agent. However on XX/XX/2016 I received a letter that my unemployment deferment was denied and no reason was given. Immediately I called the service provider and I was told XXXX sending information including that I was currently late and delinquent, that my forbearance is on the account, and that there was no one for me to speak with regarding their error they made on XX/XX/2016 confirming they had received my unemployment request along with the appropriate documentation. Ask to speak to a supervisor or the department to correct the error that was made on the servicing providers part I was told that everyone was busy and there was no one that I could speak with him I need to call back another time. The service providers for argumentative until I was not able to escalate the matter. I have absolute no confidence in XXXX, and I need your help getting my loans in the correct unemployment deferment status becuase I have provided the documentation and diligently made efforts to see that the processing has taken place, but have fallen victim to XXXX deception and captialistic interest to corrupt my current unemplyed status. 

XXXX failed to defer my loans under my rights and reported my federal student loans in a negative status without cause. The letter I recieved does not state any reason in which my unemployment deferment was denied. My concern I am being shown late and more interest is being applied. I didnt get the correct forberance. XXXX on XX/XX/2016 lied and told me everything was approved. Then on XX/XX/2016 they neglegently told me a borrower that they made an error. Too many wide range- sloppy-patchwork practices are creating obstacles for me with raising costs, causing XXXX as an unemployed single mother. The XXXX errors are cuasing more ecoonmic harm to me to quicly go in default, at no fault of my own. Please remove them as my servoce provider!! 

I am requesting that the Bureau launch an investigation as a priority to take action against this company. They are using deceptive trade practices too quickly lead students to default in there student loans and are engaging in illegal servicing practices. They failed to address this ongoing problem, and I would like another service provider that is professional and competent to service my loans, and provide me with information and updates regarding federal student loans. and that ongoing work includes addressing many of the problems to increase my bororow protection rights in coordination with the U.S. Department of Education and the U.S. Department of the Treasury. " With one out of four student loan borrowers struggling to repay their loans or already in default, cleaning up the servicing market is critical, '' to boost assistance for distressed borrowers like 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