Consumer complaint received 2018-01-23
Product: Debt collection — Federal student loan debt
Issue: False statements or representation — Impersonated attorney, law enforcement, or government official
Company: Premier Student Loan Center (NH)

1. On the morning of XX/XX/XXXX, I responded to a text message from a company claiming they would help get my 6 student loans out of default status. I said I would like their help. 

2. Shortly thereafter, I received a phone call from XXXX XXXX at Premier Student Loan Center ( now referred to as PSLC ), ( XXXX XXXX XXXX , XXXX XXXX, XXXX, CA XXXX telephone # XXXX ) saying she would process and get approval for a student loan rehabilitation program endorsed by the Department of Education. XXXX XXXX claimed to be working directly with the servicer and DOE and could negotiate the one-time agreement for me. She knew several pieces of personal data about me and the transaction seemed legitimate. 

3. I provided my SS #, DOB, FSA ID. I gave her my income information. After this, she put me on a brief hold, returned and said congratulations, the DOE has approved you for its one-time rehabilitation program. She outlined what I owed ( which was accurate within a few thousand dollars ) and the DOE would settle for {$8500.00}. She said 6 " Good Faith '' payments of XXXX would be required and then would roll down to $ XXXX/month for 240 months. She also stated that after the 6 " Good Faith '' payments my loans would be out of default. 

4. While on the phone with XXXX XXXX, I electronically received a 12-page email  contract outlining the agreement which she very quickly talked me through where to sign and initial. I did this while I was on the phone with her, ( without reading the fine print ) and sent the contract back. I provided my debit card information and scheduled the first payment for XX/XX/XXXX 5. After we hung up, I began reading the fine print in the contract. ( attached ) This is where excruciating panic set in. The following sections are of terrifying concern. 

a ) # 6-Indemnification : " Company makes no warranty, express or implied, as to the fitness of any recommendation it may make to Client arising out of this Agreement. '' Meaning/Interpretation - what PSLC told you about the rehabilitation program the DOE agreed to means nothing. 

b ) # 6 ( page 3 of 12 ) -Fees for the Above Services and Length of Agreement : " In connection with this Agreement the above services shall be provided to the Client at a rate of {$1200.00} for document preparation and delivery to Client for a consolidation consistent with the above ; and {$1200.00} for services limited to default accounts and rehabilitation programs as described above. '' Meaning/Interpretation - the first 6 " Good Faith '' payments in my contract of XXXX = XXXX - represent the PSLC client service fee. None of which go to the DOE. 

c ) # 4. Limited Money Back Guarantee- '' This guarantee expires six month after the date this Agreement is signed by the Client. '' Meaning/Interpretation : After they collect the 6 payments, they owe you nothing for non-performance. 

d ) # 5. Process- " Once Client submits application package to DOE , it may take DOE or its servicers up to ninety ( 90 ) days or longer to respond. '' Meaning/Interpretation - they can delay sending in your application to the DOE for at least 90 days, buying themselves enough time to stall for at least 6 months ( through the no-refund period ). Also that the " approval '' they initially said you 'd received from the DOE was non-existent. 

6 ) After reading each of these caveats in the fine print, I immediately called DOE and my servicer and explained what had happened. Neither agency knew or had heard of PSLC. 

7 ) I immediately called XXXX XXXX 's direct line at PSLC and could not get an answer after being able to reach her immediately at all times during the day prior to my signing the contract. I called back 3 different times and left messages all within 10 minutes. Still no answer. 

8 ) I called the main XXXX number listed on their website http : //premierstudentloancenter.com/ and demanded answers. The agent told me " well you signed the contract. '' 9 ) I was furious and demanded to speak to a supervisor. I spoke with XXXX XXXX XXXX who indicated they were doing nothing wrong and I 'd signed the contract. I demanded that he cancel the contract. He sent an email that the account had been canceled. I followed up with a scathing email to XXXX XXXX and XXXX XXXX indicating I would be reporting them to you. 

As I see it, XXXX XXXX verbally confirming that I 'd received a student loan rehabilitation approval from the DOE is fraud. Further, written points in the contract confirm intent to commit fraud. It would be interesting to find out if other PSLC customers 6 " Good Faith '' payments all were XXXX. 

I would not have known any of these details unless I had n't hung up with XXXX XXXX and immediately read through each paragraph of fine print. ( And unfortunately, who takes the time to read fine print anymore? ) I have canceled my debit card and initiated an identity lock. Under the circumstances, I am lucky. I figured out the scam pretty quickly. ( Albeit, not quickly enough ) I imagine that people who do not read the fine print will not be so lucky when they find out after 6 months of " Good Faith '' payments that the DOE has no idea what they are talking about.