Complaint sub-issue: Trouble with how payments are being handled

COMPLAINT XXXX XXXX XXXX ( hereinafter referred to as a Borrower ) would like to lodge a complaint unto this Office relating to his student loan and to this effect alleges that : PARTIES 1. Borrower is and has been residing at XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX  for over a period of 20 years. At present, he is retired and since XX/XX/XXXX he has been receiving an SSS pension amounting to {$1100.00} a month. against 2. Education Credit Management Corp ( " ECMC '' ), is a loan holder, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( `` XXXX XXXX XXXX   '' ), is a lending financial institution ( collectively known as " Lenders '' ) and XXXX XXXX XXXX XXXX XXXX ( " XXXX '' ), is a private collection agency which is stationed in XXXX.

PREFATORY STATEMENT 3. This complaint is based on the following grounds, ( 1 ) double dipping a debt, ( 2 ) fraud, ( 3 ) unfair debt collection practices, ( 4 ) harassment, ( 5 ) failure to espond to debtor, ( 6 ) violation of implied covenant of good faith and fair dealing and ( 7 ) Abuse the Levy Process and, ( 8 ) conspiracy to commit fraud.

First Cause of Action ( Double Dipping A Debt ) 4. ECMC, XXXX XXXX XXXX and XXXX, separately or jointly, are guilty of double dipping because they, separately or jointly, intentionally and deliberately, caused the amount of the Borrower 's debt doubled in order that they could to collect more money from the Borrower. Borrower 's debt was unnecessarily, improperly and grossly transferred to XXXX for collection despite the fact that ECMC has been collecting Borrower 's payment from the Bureau of Treasury ( " Treasury " ) due to ECMC 's levy.

Second Cause of Action ( Fraud ) 5. ECMC, XXXX XXXX XXXX  and XXXX, separately or jointly, are guilty of Intentional fraud because they, separately or jointly, failed to disclose to Borrower the status of his account. ECMC and XXXX XXXX XXXX transferred Debtor 's debt to a XXXX without the prior knowledge, consent of or approval of Borrower. Borrower did not receive a written notice from the Lenders that his account was transferred to XXXX. Either, Borrower did receive a notice from XXXX that it is now handling borrower 's debt since XX/XX/XXXX Third Cause of Action Unfair Debt Collection Practices 6. ECMC, XXXX XXXX XXXX and XXXX, separately or jointly, are guilty of unfair debt collection practices in that they, separately or jointly, used and employed collection tactics that undermines and subvert the purpose of the student loan program. For example, forcing a debtor to deal with a private collection agency when it is no longer necessary because of the levy and on several occasions referring the account to various private collection agencies. Also, levying the Borrower 's SSS pension without a prior notice to Borrower. Had Borrower receive a collection demand letter, Borrower would have made a payment arrangement with ECMC. Also, Borrower did not receive a written letter from Lenders demanding payment of his debt prior to the levy.

Fourth Cause of Action Harassment 7. On several occasions, hired private collection agencies to force Borrower to pay. Then, when those collection agencies did not deliver results, ECMC and XXXX XXXX XXXX  levied Borrower 's SSS pension with the Treasury on XX/XX/XXXX and since then up to the present time, ECMC and/or XXXX XXXX XXXX has been receiving payment from Borrower thru the Treasury.

8. Not satisfied, after the levy was effected and after Borrower 's begun paying his debt, ECMC and/or XXXX XXXX XXXX without justifiable reason but to harass and increase the debt of Borrower, transferred Borrower 's debt to XXXX. Therefor, ECMC and XXXX XXXX XXXX  are quilty of harassment.

Fifth Cause Of Action Failure to Respond to Debtor 9. On several occasions before the filing of this complaint, Borrower called and e-mailed ECMC and XXXX XXXX XXXX   informing each of them about Borrower 's desire to make a payment arrangement and thereafter lift the levy.

10. Borrower also would like to know why his account was transferred to XXXX  when there is an existing levy on his SSS pension with the Treasury. Either, ECMC or XXXX XXXX XXXX failed and still continued to fail to respond to Borrower 's communication.

Sixth Cause of Action Violation of Implied Good Faith and Fair Dealong 11. ECMC and XXXX XXXX XXXX  violated the covenant of implied good faith fair dealing because they transferred Borrower '' s debt to XXXX for collection when the account was already subject to a levy by Treasury and without the prior knowledge, consent or approval of Borrower.

12. ECMC and/or XXXX XXXX XXXX  hired a new debt collector, here XXXX  and Borrower pays XXXX for its unrendered services because of the existing levy which is not fair under this circumstance. Therefore, the Lenders are in bad faith and therefore they both violated the covenant of good faith and fair dealing..

Seventh Cause of Action ( Abuse of Levy Process ) 13. ECMC and XXXX XXXX XXXX kept Borrower financially hostage for more than two ( 2 ) years because of the levy. They and each of them knew or should have known that the levy can not be levied unless the debt is fully paid or Borrower would make a payment arrangement.

14. Despite the existing levy, the Lenders hired XXXX  purportedly to collect the debt which Borrower has been paying and as a result of which Borrower 's debt unnecessarily increased. Because of the oppression perpetrated by Lenders, Borrower was forced to pay Lenders additional cost and expenses. Therefore, the Lenders abuse the levy process Eight Cause of Action Conspiracy to Commit Fraud 15. ECMC, XXXX XXXX XXXX and XXXX  are guilty of conspiracy to commit fraud in that they conspired and confabulated with each other to increase Borrower 's debt so they could collect more money from Borrower.

16. Borrower 's account was transferred to XXXX  without the prior consent, knowledge, approval of Borrower, that the Lenders and XXXX  intended to extract more money from Borrower, that they knew or should have known that a levy on Borrower 's SSS pension existed with the Treasury at a time of such transfer and that, they failed to provide Borrower Statement of Account. Consequently, Borrower 's debt ballooned from {$1600.00} to more than {$3000.00}.

FACTS 17. In XX/XX/XXXX, Borrower loaned from ECMC in the amount of {$10000.00}. Borrower used this money to finance the college education of his son. Borrower started paying his debt until XX/XX/XXXX when he was laid off from his job. At that time, Borrower 's debt was estimated to be in the amount of {$5600.00}.

18. Borrower lost contact with ECMC and because of this, his debt remained unpaid. All these years, Borrower did not receive an oral or written notice of default from ECMC or XXXX XXXX XXXX

19. On or about XX/XX/XXXX, after Borrower retired on XX/XX/XXXX, Borrower received a Notice of Levy from the Treasury. Since, he wanted to pay the remaining balance of his debt which was the amount of {$5600.00}, Borrower decided not to object to the levy and let the Bureau offset from his SSS retirement pension of {$1100.00}, the amount of XXXX each month.

20. To date, Borrower had already paid an amount of {$3900.00} leaving a balance of {$1600.00}.

21. On XX/XX/XXXX, Borrower received a letter from the Treasury. In its letter dated XX/XX/XXXX, the Treasury informed Borrower that the it applied the amount of {$160.00} to his outstanding debt with ECMC. Borrower called ECMC but ECMC 's voice mail told him to contact XXXX XXXX XXXX XXXX. Borrower called XXXX and they told him that they are a private collection agency who is now handling his account. Borrower was surprised and shocked because did not receive any notice either from ECMC or XXXX XXXX XXXX or XXXX  about the transfer of debt. So, Borrower was surprised when XXXX told him that his balance as of this writing is in the amount {$3000.00} something. Borrower was shocked because his debt almost doubled.

22. The transfer by ECMC of Borrower 's debt after the garnishment was effected was not proper and necessary. It is grossly unfair, unreasonable, unconscionable and abuse of debtor 's right. Borrower 's has beenn paying ECMC of his debt regularly each month since XX/XX/XXXX 23. ECMC or XXXX XXXX XXXX  is in bad faith in making Borrower financially suffer more by transferring his debt to collection who would do nothing but to receive from the Treasury.