Consumer complaint received 2017-08-13
Company: ACS Education Services
State: OK
Product: Debt collection
Sub-product: Private student loan debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
XXXX XXXX has a Private student loan that is serviced by XXXX XXXX XXXX, formerly ACS Education Services DBA XXXX XXXX XXXX. XXXX XXXX is the master servicer and the lender does n't have a mailing address or phone number or any employees according to XXXX XXXX.
XXXX XXXX took out 6 loans for the following amounts.
1. {$5000.00} 2. {$5000.00} 3. {$5000.00} 4. {$5000.00} 5. {$5000.00} 6. {$6000.00} ACS consolidated the loan into the following loans without XXXX XXXX 's permission A-1 {$5000.00} A-2 {$15000.00} A-3 {$11000.00} In this time period XXXX XXXX did NOT know the following ( proof attached ) 1. How his payments were allocated 2. The balance of the individual loans 3. The method used for the allocation 4. The rates of the individual loans 5. The rate changes for the individual loans In this time period XXXX XXXX was unable ( by ACS and XXXX XXXX admission ) to 1. Make individual loan payments 2. Make partial payments to avoid deferment to one loan instead of all in the group ( for example he was billed {$120.00} for A-2 but really he should have had the opportunity to pay {$50.00} for loan 2 to keep it current ) 3. Specify how to apply loan payments via the mail lockbox As a result of the above 1. XXXX XXXX 's credit report was incorrect 2. XXXX XXXX 's credit balance were incorrect 3. XXXX XXXX 's credit history did not show correct length or balance of payments To hide this information ACS and XXXX XXXX 1. Withheld loan balances and rates upon request 2. Withheld payoff amounts upon request 3. Sent redacted promissory note with page numbers blacken out and told this was the complete document.
4. Sent 3/6 promissory notes and told that was all of them in order to trick XXXX XXXX into thinking he only had 6 loans.
5. Failed to properly inform XXXX XXXX partial payments would suffice to keep one or more loan in good standing 6. Failed to tell XXXX XXXX the nature of his loans upon multiple calls.
7. Failed to tell XXXX XXXX his interest rates 8. Failed to provide a correct and usable payment history for each loan 9. Failed to respond to any request in a timely manner 10. Failed to explain how his loan payments were applied or calculated.
The results led to 1. Minimum payments decreased from {$50.00} ( contract ) to as low as {$30.00} in some cases thus costing XXXX XXXX thousands in interest and denying his opportunity to payoff the loan in advance 2. Rates were averaged or mixed and payments were allocated in a manner that was disclosed to XXXX XXXX. There was no way to know what was happening to his loan.
3. XXXX XXXX attempted to payoff individual loans with a tax return but was unable to complete the task due to the lack of disclosing of the individual balances or compliance with requests to know which loan had the highest rate 4. XXXX XXXX 's credit report showed higher balances thus hurting his credit Then ACS attempted to switch the rates and balances for multiple loans in an effort to confuse XXXX XXXX. ( attached ) With multiple calls to ACS and XXXX XXXX neither company offered to correct the issue.
With XXXX XXXX as a witness XXXX XXXX called numerous times to speak to a representative at ACS and was denied the opportunity to speak to a person about his loan for over 90 days. They would refuse to answer questions and continually hang up or transfer to an unmanned voicemail system even after requests to stay on the line until a person answered.
XXXX XXXX issued an administrative deferment after this episode.
1. XXXX XXXX owed {$0.00} before the forebearance 2. The issues were not correct or even addressed 3. ACS refused to answer calls for 90 days with XXXX XXXX as witness 4. ACS is now reporting XXXX XXXX 60 days late and caused his credit to drop over XXXX points I believe ACS and XXXX XXXX are in violated of the following the Unfair and deceptive practices related to payment allocation, in violation of Sections 1031 and 1036 of the Consumer Financial Protection Act of 2010 ( CFPA ), 12 U.S.C. 5531, 5536 ; ACS mislead and refused to provide information necessary for each transaction. As a result, ACS engaged in unfair acts and practices in violation of sections 1036 ( a ) ( 1 ) ( B ) and 1031 ( c ) ( 1 ) of the CFPA. 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) and 5531 ( c ) ( 1 ).
unlawful practice related to payment aggregation in violation of Section 623 of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ), and Section 1022.42 of Regulation V, 12 C.F.R. 1022.42 ( a ) ; Additionally, ACS and XXXX XXXX failed to follow guidelines pursuant to 15 U.S.C. 1681s-2 ( a ) ( 2 ) ( B ) by continuing to furnish information that was inaccurate.
Further still, ACS and XXXX XXXX  failed to follow guidelines pursuant to 15 U.S.C. 1681s-2 ( 3 ) by failing to mark the accounts as disputed unfair practices related to the assessment of late fees in violation of Sections 1031 and 1036 of the CFPA, 12 U.S.C. 5531, 5536.
ACS, engaged in illegal debt collection activity through the use of a business other than the name of the company that owns the debt pursuant to 15 USC 1692 807 ( 14 ).
unfair acts and practices pursuant to SEC 1036 ( a ) ( 1 ) ( B ), 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) Consumer rights to access information 12 U.S.C. 5533 ( a ) in support Wire 's letter with specific payment directions and thus violated this section of the fair debt collection act pursuant to 15 USC 1692e 810.

Company response to consumer: Closed with explanation