Consumer complaint received 2019-08-01
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: National Recoveries, Inc. (MI)

The garnishment your firm filed with my employer was due to your firm 's lack of standard operating procedures. It is unethical. It is misrepresented. And it is illegal. 



On XX/XX/XXXX, I explicitly asked XXXX XXXX to set up a payment plan in a recorded phone conversation. On XX/XX/XXXX, I called again and spoke to XXXX asking for this and she hung up on me after 12 minutes. I called again on XX/XX/XXXX and spoke to XXXX XXXX. And again, I explicitly asked for directions on setting up a payment arrangement. XXXX didn't even look at the prior conversation with XXXX. He said he wasn't aware of the conversation until after I asked again. So I waited on the line and faxed the paystubs and other information he asked for to get the payment arrangement process set up. He confirmed that the fax was received and would be processed. He said that they couldn't read my paystubs, so I mailed them. I called on XX/XX/XXXX and spoke to XXXX XXXX and held the line for 9 more minutes. He said they hadn't received the paystubs yet. But the conversations reflecting the attempted payment arrangement with XXXX and XXXX was noted reflecting that I no longer wanted a hearing. The next day, I confirmed that the paystubs were received by your firm on XX/XX/XXXX. I confirmed with XXXX that I wanted to set up a payment plan. I called again on XX/XX/XXXX and spoke to XXXX who told me that my paystubs weren't paystubs ( I have no idea what that even means ). After 13 minutes on the phone, she hung up on me. I called again. I spoke to XXXX XXXX. She verified that she received my fax about clarification on my paystubs. I kept her on the line. And I refaxed the documents again to XXXX. I had her confirm that she received them. Amazingly, she was able to read the faxed paystubs, even though I was told that they were illegible before. She gave me her WORD that if they needed any additional documentation THEY WOULD FOLLOW UP WITH ME. This time, I was on the phone for 1 hour and 32 minutes. On XX/XX/XXXX I received a letter from the DOE following up on the hearing that I cancelled with XXXX  on XX/XX/XXXX. I still hadn't heard ANYTHING from your firm, even though XXXX gave me her word. Then, on XX/XX/XXXX, I received an email from my employer stating that my wages are being garnished. NO ONE EVER INFORMED ME THAT THE PAPERWORK WASN'T ACCEPTED. No one every followed up. I have been willing to get into a payment arrangement since XX/XX/XXXX. All the calls are documented and recorded. There are 7 calls since that date explicitly asking for this. I have spent over 10 hours on the phone trying to resolve this so that a garnishment was NEVER on my record. As a result, I filed a formal complaint with the Department of Education. Just as a follow up, I called again on XX/XX/XXXX and spoke to XXXX. He asked me when I was making a payment. I told him that I'm waiting for the paperwork that I was told was " necessary '' to start the process. I told him my frustrations with the system. And I told him that I was told it would be reviewed by XXXX or XXXX ( the director and assistant director respectively ). He said he'd put me through to his manager. I said don't waste my time. I want those two specific people. He put XXXX on the line. I told XXXX that I asked explicitly to talk to the director and A Director.  She put me through to the A Director. After she introduced herself, she said she was going to look at my file ( which was already the agreement from the XXXX ). I waited and the phone disconnected. Another 13 minutes of my life wasted. I filed a complaint with FSAid. Should hear back within 15 days. Filing another complaint with the CFPB. I called again on XX/XX/XXXX to ask where my loan rehabilitation paperwork was. XXXX XXXX said that it was sent on XX/XX/XXXX. I also called on XX/XX/XXXX and spoke to XXXX again. He said that months of on time payments, I have to request everything to be removed from credit report, collection costs are charged every month and request that the garnishment stops after 5 months XXXX is contact number. $ XXXX/month in addition to garnishment. I also have documented conversations with XXXX XXXX last week, because XXXX XXXX told me during our conversation that a supervisor would review the recorded conversations to resolve this garnishment. This garnishment affects my job. This affects my personal and public record. I made every effort within my power to prevent this from happening. It has not only caused me tremendous anxiety and stress, it impacts my job and my family. 





I have been willing to rehabilitate this loan. And you have those conversations documented. I was never even given a written warning about the garnishment in advance. I assumed that your firm was upholding it's portion of this agreement that we made verbally. 



A fair resolution to this problem is to have the garnishment permanently removed from my record, including my credit and that information should be forwarded to my employer. It should also be permanently removed from my U4 through FINRA. This error is a processing error by YOUR FIRM. It was NOT because of me or my lack of trying to work with you. It is unethical and you have used deceptive practices to start this collection process with my employer, which is illegal under the Fair Debt Collection Practices Act. Furthermore, this I still have never seen the actual accounting for this loan. You don't own it. The Department of Education does. These loans date back to XXXX and no original documents and/or accounting has been provided to verify the charges for them. From XXXX to XXXX, I was never even able to logon to see the accounts, due to a name change and a glitch in the FSAID system. No statements were ever sent after XXXX. So I had no written confirmation of interest or fees. And in recorded conversations with XXXX/XXXX, they didn't even have corroborating interest amounts on my account. 



If you do not remove it from my account, I will be forced to take legal action, in addition to the formal complaints with the Department of Education and the CFPB. 



And now, I am submitting ( what I was told last week ) were the ONLY supporting documents that I need : 2 tax returns, daycare statement/billing and a paystub to show medical bills ( even though they're apparently illegible to some, they will work for healthcare, according to XXXX XXXX ). 



And I have also been told for the last month, by every agent, that the notes and conversations will be reviewed to make this determination. I would appreciate a response, as all promised except XXXX XXXX, who said that she honestly couldn't make that promise.