Consumer complaint received 2018-03-21
Company: National Credit Services, Inc.
State: IN
Product: Debt collection
Sub-product: Federal student loan debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Seized or attempted to seize your property

Complaint:
My XXXX Federal Income tax refund in the amount of {$5000.00} was taken by National Credit Services ( NCS ) to offset the alleged defaulted student loan, while on XXXX XXXX Military. 

The alleged school loans were, supposedly, taken out by me, during a time that the XXXX XXXX GI Bill was paying for my schooling in XXXX. Pell Grants were covering any other expenses. The original loans were allegedly taken out at XXXX University in XXXX Texas. My school and expenses were covered by my XXXX XXXX GI Bill and Pell Grants. I did not need loans and I do not recall ever applying for loans. I believe XXXX received money from the Veterans Administration and also took out loans in my name. I did not attend any exit interviews upon my graduation because I moved from the state of Texas to Pennsylvania before my actual graduation and in fact completed my last 2 classes at a branch campus in Maryland while still technically attached to the campus at XXXX, TX. 

I didn't even know loans existed in my name till National Credit Services ( NCS ) notified me in XXXX or XXXX or XXXX of XXXX. I spoke with XXXX with NCS ( XXXX ) who was just attempting to collect the debt for the alleged defaulted school loans to the Dept. of Education before my pay would be offset. She gave me a direct number to contact them after I had some time to investigate the alleged loans. I told them I would contact XXXX University and I also asked the Veterans Administration ( VA ) to investigate these alleged loans. The VA just referred me to their website. The information from XXXX was conflicting and inconsistent. For example, right before my graduation, on XX/XX/XXXX, I received a note saying I was getting a refund of over {$1000.00} but had a balance due of {$11.00}. I never received this refund but evidently XXXX did. My payment plan for XX/XX/XXXX showed my first installment due XX/XX/XXXX showed an amount due {$6300.00}, payments received {$6300.00}, changed from {$3400.00}, remaining amount due of {$0.00} dollars. ( Copy attached ) By the way, I also learned the Financial Aid Director was reassigned or transferred during this time period to another position. Moreover, one loan used my wife 's birthday as the loan begin date in XXXX and my birthday as the loan end date in XXXX on loans taken out in XX/XX/XXXX. I was also told by NCS that once I gave them all this information, and they had noted all the information and recorded my information about what I had found out about the debt and notified the debtors that I was fine. They noted everything in their system. NCS assured me that my XXXX refund would not be offset while I tried to find out who, what, when, where, why and how these schools loans came to be and why I was not notified till they were in a default status. 

After my Federal Tax return was offset, I spoke with NCS, on or around XXXX XXXX XXXX. The representative requested and mailed the Department of Education appeal paperwork. He offered to help fill out a Department of Education appeal, but I have not received them. My family is in Indiana and I was XXXX in Pennsylvania and then recently transferred to XXXX, VA. I expect to get all of the information and file that paperwork within the next week. The NCS representative did admit that he could see in the system where I had notified them of the situation back in XXXX or XXXX or XXXX of XXXX. He took current notes about my situation. He looked at the old notes and everything that was stated. The conversations were recorded notes taken. When questioned about deferred loans and XXXX XXXX military, he did state that he did know that if the loan was in a deferred status that they could not collect the debt. I made sure he answered the question and stated this with the understanding that I was and he was being recorded. 

Even if a student loan was owed. My tax refund should not have been used to offset the debt. It should have been deferred while on XXXX XXXX in the XXXX. I was on XXXX XXXX orders to XXXX XXXX PA as the XXXX XXXX and armed watch XXXX XXXX as of XXXX when I was transferred to another XXXX XXXX location Med Hold XXXX XXXX. My XXXX Federal Tax Refund was offset to pay National Credit Services so they could collect a loan debt for the Department of Education. I am also still currently on XXXX XXXX orders in XXXX, VA. I am on XXXX XXXX awaiting XXXX XXXX. No one should have been authorized to offset or collect on a defaulted or current school loan that should be in a deferred status. 

I am an XXXX XXXX and XXXX XXXX XXXX XXXX with over 16 years of military service. I am still on XXXX XXXX military orders to XXXX XXXX. I am going to be getting XXXX XXXX XXXX in the next XXXX weeks and I need my income tax refund back from either the National Credit services or the Dept of Education to care for my wife and XXXX minor children. 

I need my money {$5000.00} federal tax return money. I filled my XXXX taxes with XXXX XXXX in XXXX XXXX, PA. They have the needed tax documents and I can also forward copies. 
XXXX University XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX The XXXX XXXX Bldg XXXX XXXX XXXX XXXX, TX XXXX m : XXXX f : XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief