Consumer complaint received 2019-04-17
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: Gurstel Law Firm, P.C. (AZ)

In XXXX, I obtained a private student loan from XXXX XXXX, to cover moving costs, as I was moving to GA to attend another college. My initial request to them ( on a recorded call ) was for {$5000.00}. The representative asked several questions about my situation and advised to ensure I took out more than enough to cover any costs, as I would have to go through the application process again if I decided I needed more money. 

When asked what I qualified for, they advised me, with having my mother as a co-signer, I qualified for up to {$20000.00}. This was our qualifying amount with me being XXXX, a XXXX making about {$1100.00} a month and my mother being on social security, making less than {$1000.00} a month, and both with credit scores in the 570-650 range. 

Of course me being young and not knowing the long term impacts of this, I accepted. About a year later, when I needed additional funds for school, I reached out to them again, this time still making approximately the same amount of money and having my mom as a co-signer. The company allowed us to take out an additional ( approximate ) {$20000.00}, in addition to allowing my mother to co-sign on a friends student loan for {$30000.00}. 

After graduating in XXXX, I began receiving collection notices to start repayment. All of the alleged recorded calls will reflect, on numerous occasions attempted to set up a reasonable payment plan, as they were asking for approximately {$550.00} and at this time I was making around $ 1,500.00/month. The declined, were extremely intrusive and disrespectful, also declining to accept anything less than the request amount. 

Since I could not afford this amount, I made no payments. In XXXX, I was again contacted by a company servicing the account. After a very long conversation going rounds about why I could not afford what they requested, their initial negotiated amount was nothing less than {$250.00}. I advised I could a maximum afford {$100.00} and advised that was stretching my budget. After the rep consulted with his management, they agreed to $ XXXX/month for 3 months and then said we would reconvene at that time, as I was expecting a promotion and possibly able to afford a little more. When my third payment was made and I spoke to them again, advising my income had not changed, they declined to continue accepting the {$120.00}, insisting on a minimum of {$250.00}. After a lengthy and endless argument, I advised they could take me to court, as no judge was going to order payments for what they requesting, based on my income. 

I received no further notice from them until XXXX, when I was contacted by Gurstel Law Firm PC, who now owns the debt. I again attempted to negotiate an amount but they as well were adamant about nothing less than a few hundred a month. Since they refused to work with me, I refused to have further contact. 

At the end of XXXX, Gurstel filed a lawsuit with the XXXX count court in XXXX, AZ. I submitted these concerns to the court as well as requested proof that they even owned the debt, as they are not who I obtained my loan from. The provided proof of ownership and from there I received a few notices of their filings and changes to documents submitted to the court and from there I attempted to contact the attorney handling the lawsuit to discuss options but those calls and emails went unreturned. Magically, the only notices I didn't receive from that point on were the ones that required me to respond to the court or I would receive a notice stating I had 10 days from the date of the document to respond but they were mailed, not served, to me, usually leaving 1-3 days to respond. Additionally, the  XXXX county court requires a {$240.00} filing fee every time I have to respond, to which I requested a fee waiver but was advised I did not meet the financial guidelines and all they could do was allow me 60 days to pay it, of which I could not afford. 

After that time, in XX/XX/XXXX, I received notice of a request for garnishment, stating I had 10 days to respond, again being mailed to me by XXXX, not the courts and was received on XX/XX/XXXX, with documents dated XX/XX/XXXX. Since I was not provided sufficient time to respond, I contacted the courts after the holidays and was advised I would have to pay the {$240.00} to file a request for a hearing, money of which I did not have. 

I received no further notices or calls from XXXX until today XX/XX/XXXX, which is a request for garnishment, documents dated XX/XX/XXXX, post marked XX/XX/XXXX, advising I have 10 days from the date of the letter to respond, of which again I can not afford to do, due to financial hardship. 

My initial request to the courts was a reasonable repayment option, which was never responded to, only the notices of their filings and I have attempted to resolve the matter with XXXX directly. 

I am filing this concern with the CFPB for them to be investigated for predatory lending practices as a company and their dealing with the court in this matter, as I believe the convenient timeliness of their notices to me poses a UDAPP violation. However, I have now retained an attorney and will be proceeding with filing a lawsuit for predatory lending practices ( as outlined above, I should have never been given the amount of money I did, nor should they have allowed my mother to co-sign for almost $ 100k,  making less than $ 1k a month, on SSI, which they knew could never be garnished ).