Consumer complaint received 2023-01-27
Company: Goal Structured Solutions, LLC
State: FL
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 am writing to file a complaint against Launch Servicing LLC, XXXX XXXX and XXXX XXXX for attempting to collect money from me on an illegal contract, an Income Share Agreement ( ISA or ISAs ). I entered into this contract on XX/XX/2020 but have since discovered that my ISA is considered void and unenforceable under Indiana state law. 
I am requesting that a formal investigation be opened into XXXX XXXX and Launch Servicing LLCs operations in the state of Indiana, and that all affected students be released from these unenforceable and fraudulent private student loans. The material facts are as follows : XXXX XXXX is a covered person under 12 U.S.C. 5481 and the ISAs they employed are considered private education loans under 12 C.F.R. 1026.46 ( b ) ( 5 ). The ISAs they devised and distributed with XXXX XXXX did not include the required disclosures outlined in 12 C.F.R. 1026.46 ( b ) ( 5 ), and also included an illegal prepayment penalty in violation of 15 U.S.C. 1650 ( e ). XXXX XXXX misrepresented the nature of these ISAs in their marketing and business practices, and was not a properly licensed lender when the loan contract was signed, violating IC 24-4.5-3-502 and several provisions under IC 24-2.5-10-1 ( a ). Furthermore, they did not secure a self-certification form as required by 12 C.F.R 1026.48 ( e ) and provided a private education loan that did not conform to federal consumer financial laws. 
I was misled by their representations that the ISA was not a loan and would not affect my credit. The contract for this loan states in bold print that, THIS IS NOT A LOAN OR CREDIT and THIS INCOME SHARE AGREEMENT IS NOT A LOAN OR CREDIT. THIS AGREEMENT IS NOT AN ASSIGNMENT OF WAGES. The agreement and marketing materials stated that there was a {$100.00} commitment fee, with {$0.00} tuition and a repayment of 13 % of my income for 48 months. However, the ISA included a funded amount equal to the real tuition, with a prepayment penalty equal to what the contract calls a payment cap. Despite the contract stating that it was not a loan or credit product, my credit report shows an account from Launch Servicing LLC categorized as either student loan or education loan depending on the agency. This is a violation of 12 U.S.C. 5481, 12 U.S.C. 5536, and 15 U.S.C. 1650 ( e ), which renders the contract void and unenforceable under Indiana law, specifically IC 24-4.5-5-202. Launch Servicing does appear to have the proper servicing licensure in Indiana, but is still in violation of IC 24-2.5-10-1 ( a ) and IC 24-4.5-5-202 ( 2 ) for servicing void and unenforceable ISAs, and creating the deceptive impression that a debt is owed. 
I find it unacceptable that XXXX XXXX, XXXX XXXX, and Launch Servicing LLC have engaged in such fraudulent and delusory practices towards vulnerable segments of the population. I would appreciate your prompt attention to this matter and look forward to a resolution that will release me and my fellow students from these usurious and fraudulent loans. Though not exhaustive, the following is a list of the statutes violated : * Indiana Code 24-4.5-3-502 * which requires lenders to obtain proper licensure * Indiana Code 24-4.5-5-202, * which states that " a contract or obligation that violates this chapter is void and unenforceable. '' * 12 U.S.C. 5481, * which covers XXXX XXXX as a " covered person '' under federal law * 12 C.F.R. 1026.46 ( b ) ( 5 ), * which requires certain disclosures for private education loans * 15 U.S.C. 1650 ( e ), * which prohibits illegal prepayment penalties * 12 C.F.R 1026.48 ( e ), * which requires a self-certification form for private education loans * IC 24-2.5-10-1 ( a ), * which prohibits misleading representations and deceptive business practices The complaint letter also states that several courts have already endorsed the position that servicing loans that are void or unenforceable under state law is an unfair and abusive act. I request a formal investigation be opened into XXXX XXXX and Launch Servicing LLC 's operations in the state of Indiana, and that all affected students be released from these unenforceable and fraudulent private student loans.

Company response to consumer: Closed with explanation