Consumer complaint received 2022-07-11
Company: Patenaude & Felix A Professional Corporation
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:
Complaint : XX/XX/XXXXXXXX XXXX XXXX XXXX including XXXXXXXX XXXX XXXX Loans for a minor continuously Not Acknowledged by XXXX XXXX XXXX XXXX XXXX ) : {$6100.00} has been collected by XXXX after unacknowledged XXXX XXXX XXXX XXXX  ( XX/XX/XXXX ) and Bankruptcy Discharge Order XX/XX/XXXX ) ~~ I received XXXX XXXX private school parent student loans ( XXXX XXXXt XXXX ) from XXXX XXXX XXXXXXXX for my minor daughter to attend the XXXX of the XXXX XXXX XXXX for the XXXX and XXXX grades XXXX XXXX and XXXX. 
The XXXX XXXX XXXX XXXX loan program was disbursed through XXXX XXXX XXXXXXXX from XXXX through XXXX. At some point these loans were allegedly transferred to XXXX XXXX XXXX ( XXXX ). 
The first loan # XXXX was disbursed on XX/XX/XXXX, for {$7400.00}. 

The second loan # XXXX was disbursed on XX/XX/XXXX, for {$11000.00}. 

I filed for a XXXX XXXX bankruptcy in XX/XX/XXXX which was discharged on XX/XX/XXXX, 2012.The loans for XXXX ( # XXXX ) and XXXX ( # XXXX ) both were included in the XXXX XXXXXXXX XXXX. 

I also later filed a XXXX XXXX bankruptcy on XX/XX/XXXX, which was discharged on XX/XX/XXXX. The loan for XXXX ( # XXXX ) was included in the bankruptcy and Bankruptcy Discharge Order. 
The second loan ( # XXXX ) defaulted on XX/XX/XXXX, and was not included in the XX/XX/XXXX, bankruptcy filing because the Washington state statute of limitations had expired, and the law estops revival or reinstatement of a debt after the date of expiration. Therefore, no legal claim was possible for this debt beyond the expiration of the statute of limitations. 
NCT has not acknowledged the Bankruptcy Discharge Order of XX/XX/XXXX and continued to bill me for both debts. I felt compelled to continue payments to avoid another defaulted loan, aggressive collection tactics and possible legal action. 
XXXX informed me that I was contractually required continue to payments on the first loan ( # XXXX ) after both bankruptcy discharge dates and violated the XXXX Bankruptcy Automatic Stay and Bankrupt Discharge Orders by continuing direct collection activities. I made timely payments and have paid a total of {$6100.00} ( XX/XX/XXXX to XX/XX/XXXX ) since my Bankruptcy Automatic Stay Order ( XX/XX/XXXX ) and Bankruptcy Discharge Order were issued ( XXXX XXXX ). 
I was continuously contacted by XXXX indicating a requirement to repay the defaulted second loan ( # XXXX ) via XXXX XXXX XXXX XXXX XXXX ). After requesting in writing that they cease and desist all contact with me for this debt in which the statute of limitations had expired. XXXX sent me a letter in response from stating that all collection action has been permanently ceased. 
After the bankruptcy discharge of XX/XX/XXXX, I filed a complaint with CFPB ( # XXXX ) on XX/XX/XXXX, with XXXX regarding dischargeability of the XXXX XXXX XXXX student loans. 
I stated that my minor child attended a high school for which the loan funds were dispersed. I further stated that the loan funds were used to pay high school tuition and were not " qualified education loans.to solely to pay qualified higher education expenses '' and therefore did not meet the requirements as an exception to the U.S. Bankruptcy code. 

The XXXX complaint response stated that they had no record of my bankruptcy and referred me to XXXX  ( the representing collection agency for XXXX  ). XXXX stated that I needed to file an adversary proceeding with the bankruptcy court to request that the loans be discharged. At the time I did not have financial capacity to move forward with this proceeding. 
I filed a second complaint with the Consumer Financial Protection Board ( CFPB ) ( # XXXX ) regarding the reason why my account ( # XXXX ) had a {$0.00} balance due XXXX thru XXXX XXXX XXXX responded that they had found my bankruptcy documents and belatedly gave me a bankruptcy forbearance for those dates. It was very confusing to receive a bankruptcy forbearance 18 months which was issued without explanation after the direct violation of the bankruptcy automatic stay order. 

Section 523 ( a ) ( 8 ) ( B ) of the Bankruptcy Code ( as revised effective XX/XX/XXXX ) excepts from discharge " any other educational loan that is a " qualified education loan, as defined in section 221 ( d ) ( 1 ) of the Internal Revenue Code of XXXX ; incurred by a debtor who is an individual. '' " Section 221 ( d ) ( 1 ) of the Internal Revenue Service code defines " Qualified Education Loan '' to mean " any indebtedness incurred by the taxpayer solely to pay qualified higher education expenses. 

Each XXXX XXXX XXXXXXXX loan was disbursed when my daughter was a minor ( not a taxpayer ) attending high school ( which was not a qualified higher education institution expense ). No adversary proceeding should be necessary since these loans were evidently not qualified ( higher ) educational loans written clearly on the face of loan documents ( XXXX ) indicating that the funds would be disbursed to the high school. It is absolute that these loans do not fall within the exception to the U.S. Bankruptcy Code as noted above and were both discharged XX/XX/XXXX. 
The Consumer Financial Protection Bureau adamantly states that Student loan companies can not collect debts that a consumer no longer owes. 
Collection activities on both loans noted above has continued for more than 10 years after the bankruptcy was discharged. XXXX finally ceased all collection activity on loan # XXXX in response to the receipt of a recent cease and desist letter that I recently sent them. 

Collecting on debts that have been barred by an automatic stay and discharged through bankruptcy is a violation the Consumer Financial Protection Acts prohibition on unfair, deceptive, and abusive practices and a violation the order from the United States bankruptcy judge who presided over my case.

Company response to consumer: Closed with explanation