Consumer complaint received 2019-01-11
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: ORG GC GP BUYER, LLC (NY)

It has come to my attention, after receiving a notice of wage garnishment from the U.S. Department of Education, that GC Services has made a significant error while managing my student loan account. Although I completed GC Services loan rehabilitation program in XX/XX/XXXX, the system never sent my account to a non-defaulted servicer. I have the original letter from CG Services dated XX/XX/XXXX confirming completion of the rehabilitation program I enrolled in the month of XX/XX/XXXX. GC Services, in error, returned my account as delinquint to the Department of Education, who in turn submitted the account to collections through XXXX XXXX XXXX. Since receiving the completion letter from GC Services dated XX/XX/XXXX, I have not received any notifications or letters from them regarding my account or its status and assumed they were still taking automatic payment on my loans, which they were not. This error has occurred secondary to prior negligence on GC Services behalf in processing multiple automatic payments incorrectly in XX/XX/XXXX. Automatic payments were set up on the account and began on XX/XX/XXXX in the agreed upon amount of {$56.00} dollars. Per GC Services, a typo was made when they entered my payment into their system, which led to only a {$5.00} payment being drafted from my bank account. I spoke to them multiple times to resolve this issue as soon as I became aware of it. GC Services acknowledged the error on their behalf and assured me it would be remedied and that it would not lengthen the 9 month period that our agreement had stipulated for rehabilitation. I also reported the circumstances and GC Services negligence to the U.S. Department of Education. On XX/XX/XXXX, GC Services sent the U.S. Department of Education an apology that acknowledged an error on their behalf in processing my payments. I spoke to the U.S. Department of Education on XX/XX/XXXX regarding the status of my loans and the negligence of GC Services. They confirmed that although it appeared I had completed the rehabilitation program my account was sent back to them by GC services for delinquency in XX/XX/XXXXin error. I was advised that my only option at this point, as GC Services is no longer the collecting agency, is to request a hearing with the U.S. Department of Education and forward them all of the documentation I have saved from GC Services. While I was unaware that GC Services had falsely reported me as delinquent to the Department of Education, my credit has been impacted negatively and I am accruing delinquent charges and extra interest on my loans. GC Services has claimed that I stopped making payments and did not meet the requirement of 9 on time monthly payments. My payments were AUTOMATIC scheduled payments set up with them in XX/XX/XXXX and GC Services never notified me of stopping our payment agreement or a change in my account status, not even a bill. I have attached my proof if making 11 ON TIME MONTHLY payments, directly deducted from my personal checking account. Per conversations with GC Services representatives and their acknowledgment of their payment processing error on my account, their error would absolutely not affect the timeframe of my rehabilitation. I have also attached the notice they sent following my XX/XX/XXXX monthly payment stating my completion of the rehabilitation program.