Consumer complaint received 2024-07-16
Product: Student loan — Federal student loan servicing
Issue: Problem with fraud alerts or security freezes — 
Company: Maximus Federal Services, Inc. (TN)

I discovered on XX/XX/XXXX that I am the victim of identity theft and fraud. Someone in either California or Arizona, illegally used my name, SSN, and DOB to borrow {$48000.00} in student loans to a school I've never heard of before. 
I filed a police report, contacted the credit bureaus, informed the lender, loan servicer, and school, notified the FTC, and requested an investigation and loan discharge. 
The loan servicer, AidVantage, told me they would send me a fraudulent loan discharge application, it never came. I finally tracked one down online and filled it out, supplied the requested information and submitted it. They sent me a letter in the mail asking me to supply more information. I did this. I submitted it online and via USPS certified mail. 
They have since " closed my investigation for lack of proof of fraud '' because " The school did not respond with the requested documents '' ( letter dated XX/XX/XXXX. 
XXXX ) there has been ZERO transparency in this process. 
XXXX ) I got on the phone and pushed, and their fraud department informed me that they do NOT involve law enforcement. They are not trained in forensics, and their investigations are in-house. Wait. So the company that made a bad loan to an identity thief who used clearly fraudulent data ( the promissory note is a joke, fake, as in do not exist, addresses, phone numbers, references, and all at addresses I have never lived, and with an electronic signature ) to borrow money for a school that they did not a attend and I've never heard of, and they decide if I have to pay for a loan that I did not apply for because it is fraudulent? 
XXXX ) Their excuse to attempt to force me into paying them nearly $ XXXX for their mistake is that the school, who is also culpable in this fraud, did not send information to them? 
XXXX ) This is an unconscionable mistreatment of an individual whose data was released during a massive data breach from my cell-phone provider, through no fault of my own. I am a victim of identity theft, and instead of working with the appropriate jurisdictional agency, they are NOT going to report an incident which involves numerous Federal Crimes? Identity Theft, Bank Fraud, Mail Fraud, and XXXX XXXX XXXX in the Commission of a Felony? 
XXXX ) I can prove via IP address, proof of residence, and bank statements that I could not have sent the emails and correspondence involved with the loan applications or receipt of any funds. 
I have been as patient with their unwillingness to accept responsibility for their lack of due diligence. If ONE person from EITHER the school or the loan servicer had bothered to investigate the incredulous lack of legitimate information on the loan application it would never have been approved. 
Lastly, I WANT this investigated by the appropriate law-enforcement agency. 
My questions are : XXXX ) How is a company in a contract with the US Government allowed to make unilateral decisions without any oversight or the involvement of law enforcement in a situation where there are Federal Felonious behavior involved? 
XXXX ) How is this service lender allowed to approve loans in a clearly automated fashion which are so clearly fraudulent that not a SINGLE bank in this country would approve it? My wife has been in banking for 30 years. Not a single bank would have approved this loan. 
XXXX ) Why are my rights being violated, as the victim of a crime, by an organization that stands to benefit from violating my rights to attempt me to pay a debt that I am not responsible for? There are laws that protect victims of identity theft, why are those laws being ignored? 
XXXX ) Why is the school, who was provided funds, and then dispersed funds to the identity thief, not being forced to provide ALL documentation regarding their culpability in this fraud? They benefited from this by getting tuition, paid for classes that the identity thief did not take. I have not been told what these classes were, what program this was for... It's insane to me that I am being told that " No proof of fraud '' was found, when I have not left the State of Tennessee since XXXX, two years before these loans were taken out ( XXXX ), and during the time I was supposedly taking classes, I was recovering from XXXX  XXXX. I provided proof of EVERYTHING, my residence, my high school diploma, my medical records, my signature, the police reports, the FTC fraud report, etc... and they are saying they can not determine that these loans are fraudulent. 
Of course, because THEY don't want to be out {$50000.00} for BAD LOANS they made! 
So in closing. 
I am going to sue them. 
I am going to sue the school. 
But I am asking for an investigation into the gross mismanagement of this situation and how ANY government contractor can get away with violating Federal Law and in the mistreatment of the victim of a crime. 
Thank you!