Consumer complaint received 2020-11-04
Company: FIRST PORTFOLIO SERVICING INC
State: WA
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I had/have a loan through Peaks  Private Student Loans through XXXX XXXX from XXXX, WA. There was a settlement with the Bureau of Consumer Financial Protection and certain state Attorneys General that Peaks agreed to discontinue collection of the outstanding loan. My loan was though this. The issue is that I made my XXXX payment on XX/XX/2020 through my bank account. Peaks  said that the payment of {$160.00} was reversed on XX/XX/2020. I have not got the payment back. Peaks  will only give me your information to get my payment back. They will not tell my the account number that they sent the payment back to. 

NOTICE THAT NO FURTHER PAYMENTS ARE DUE ON PEAKS  LOANS Pursuant to a settlement with the Bureau of Consumer Financial Protection and certain state Attorneys General, and effective as of XX/XX/2020, PEAKS  Trust XXXX ( PEAKS ) has agreed to discontinue collection and enforcement of the entire outstanding balances of all outstanding PEAKS loans made to former students of XXXX XXXX XXXX ( XXXX ) who received private student loans in connection with their XXXX education ( PEAKS Loans ). 

Borrowers are no longer obligated to make any payments on their PEAKS Loans.

PEAKS and the servicer of the PEAKS Loans, Vervent Inc. ( Vervent ), have discontinued billing, and have discontinued collection of payments, for all PEAKS Loans. There will be no further action by PEAKS or Vervent with respect to any balance previously due and owing on any account. 

An account statement reflecting a {$0.00} balance for each PEAKS Loan with an outstanding balance as of XX/XX/2020 will be delivered to each borrower of those PEAKS Loans, and these account statements may be used as verification that the borrowers are not obligated to make any further payment on those PEAKS Loans. 

Vervent will reject or return any payment on PEAKS Loans that it receives after XX/XX/2020. 

For those borrowers who have recurring or one-time electronic payments through the Vervent payment platform that are scheduled to make any payment on a PEAKS Loan after XX/XX/2020, please note that Vervent has cancelled those payments, and all future payments, for PEAKS Loans. 

If you were sending payments directly through a bill pay service from your banking institution, you will need to contact your bank immediately to stop the payments on your PEAKS Loan ( s ). Vervent is not authorized to stop these transactions, as they are sent from your banking institution. 

Additionally, for each borrower who had an outstanding balance on a PEAKS Loan as of XX/XX/2020, all consumer credit reporting agencies to which PEAKS and Vervent reported credit information concerning that PEAKS Loan will be directed to delete the trade lines regarding that PEAKS Loan. 

It is possible that some billing statements or other notices relating to PEAKS Loans were delivered prior to or shortly after the effective date of the settlement. If you receive such a billing statement or notice from PEAKS regarding your PEAKS Loan, you may disregard that document, as it is no longer valid, and payments are no longer required on any PEAKS Loan. 

Please note that borrowers may have other types of loans related to their XXXX education that are not PEAKS Loans. This notice relates only to PEAKS Loan ( s ) with outstanding balances as of XX/XX/2020, and does not apply to any other student loan ( even if serviced by Vervent ), including other debts associated with XXXX, loans owned by someone other than PEAKS, or loans that once were owned by PEAKS but were paid in full prior to XX/XX/2020. 

Any questions about this notice or the status of a PEAKS Loan account ( s ) may be directed to : PEAKS Loans XXXX XXXX XXXX XXXX XXXX, CA XXXX XXXX XXXX Further information about the settlement is available through the Bureau of Consumer Financial Protections public website ( www.consumerfinance.gov ) and telephone line ( ( XXXX ) XXXX or TTY/TDD : ( XXXX ) XXXX ) ).

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