Consumer complaint received 2024-08-08
Product: Debt collection — I do not know
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: HEARTLAND PAYMENT SYSTEMS INC (MI)

Why this issue is properly before the CFPB : I thought this was a student loan issue and attempted to resolve it through the Department of Education and XXXX XXXX XXXX I recently received notice from the Department of Education that after conducting an investigation they have determined the XXXX XXXX XXXX made a mistake in how they distributed the funds that were supposed to be a student loan. Because the XXXX XXXX XXXX made a mistake in the distribution, the funds can not be categorized as student loan debt and they are therefore unable to resolve the issue. 

Once the XXXX XXXX XXXX received notice of the DOE 's decision, the debt was accelerated and sent to XXXX XXXX XXXX XXXX XXXX. 

XXXX XXXX XXXX XXXX XXXX contacted me via email on XX/XX/year>, with the following message : " Your past due loan account ( s ) with XXXX XXXX XXXX  was accelerated and have [ sic ] been placed with a collection agency ( s ). The entire loan balance ( s ), which includes principal, accrued interest and fees are currently due. All further communications regarding this account ( s ), including those involving payments should be directed to the assigned collection agency. Please review the chart below to see where each loan ( s ) has been assigned. '' The notice goes on to identify the " Loan Type '' as XXXX, with an acceleration date of XX/XX/year>. They claim the total balance due is {$12000.00}. 

I never made any type of loan agreement with the XXXX XXXX XXXX. I accepted the loan amount they offered under the terms I agreed to through Federal Student Aid. But since this matter is not a student loan, I think they are attempting to unilaterally turn it into some sort of a private loan they provided to me, but I never agreed to accept any loan from the XXXX XXXX XXXX I will provide the DOE letter regarding their investigation as an attached document to this complaint. 

Background : In the beginning of the academic year XXXX I was offered a student loan in the amount of {$53000.00} for the Fall and Winter terms combined. I accepted both awards in full, under the terms as I understood them ( this is not an exclusive list ) : 1. That once I was finished with college I could enroll in the public service loan forgiveness program as long as I was working at a non-profit or other qualified organization.

2. In the public service loan forgiveness program I could make monthly payments that were affordable according to my annual income.

3. Once I made 120 qualifying monthly payments towards the amount I borrowed, the remainder of the debt would be forgiven. 

After receiving the XXXX term loan, I used that loan to pay down other debt and make rent. After I used the money for those purposes, the XXXX XXXX XXXX contacted me to tell me I owed them over {$12000.00} and that I had to pay it immediately. I had no possible way to pay them {$12000.00} and requested the amount be sent back to the Department of Education, to be added to my student loan debt, which I would pay off as part of my total debt ( in the PSLF program ). 

I am asking for the CFPB to investigate the XXXX XXXX XXXX XXXX claim that I owe them money, their decision to accelerate the " repayment '' of that money, their decision to send this claim to a collection agency. 

Thank you very much for your time and consideration in this matter. Please contact me at XXXX if I can provide any additional information that will assist you in this matter. I appreciate your work very much.