Consumer complaint received 2019-04-09
Product: Debt collection — Private student loan debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: AES/PHEAA (OK)

On XX/XX/XXXX, I received a bill by US Mail for a student loan from AES XXXX and XXXX XXXX, XXXX XXXX XXXX, XXXX MD XXXX. The bill alleged a last payment received date of XX/XX/XXXX, and an amount owed of {$540.00}. AES demanded payment of a minimum {$50.00}. 

All of my student loans were paid off over 14 years ago, on or near XX/XX/XXXX. I have received no communications regarding any student loans since that date from any student loan lender or service company. My loans have been 100 % paid in full for over 14 years. 

On XX/XX/XXXX, I called AES to attempt to correct their records and demand that they cease invoices for a loan that does not exist. 

I spoke first with Employee # XXXX, XXXX, who told me she could not help because this was a private loan and there were instructions in their records to direct inquiries to XXXX XXXX XXXX. XXXX directed me to call XXXX XXXX XXXX at XXXX. 

XXXX XXXX XXXX ( XXXX ) told me that XXXX XXXX XXXX  had no record of a loan for me, and that this was an AES issue, referring me back to the general number for AES. 

I then called AES and spoke with XXXX # XXXX, who claimed she could not help me, and referred me to XXXX # XXXX, who referred me to XXXX # XXXX, who ultimately informed me that there had been a problem with AES collections recently, and that I had been billed in error. XXXX told me that the original lender was XXXX, never XXXX XXXX, and that apparently, some stale borrower lists had been sent recently to AES in error, and my notice was a mistake. XXXX also told me they'd had the same issue with many other erroneous letters and collections, based on flawed, stale lists. XXXX told me not to worry about it, that it would " work itself out '', and no further action was required by me. 

I asked for the XXXX contact number so I could verify that their records confirmed payment in full. My concern was that erroneous records and billing could result in filing of negative credit reports. XXXX gave me the number XXXX for XXXX, which I then called. 

XXXX looked up my account number, and informed me that their records did show a loan for that account number, but it had been paid in full on XX/XX/XXXX. This is the same date shown on the new bills from AES as " last payment received ''. 

XXXX advised me that this bill was clearly a mistake by AES, and the fact that I'd not received any bills since XX/XX/XXXX should be sufficient proof that it had been paid in full. XXXX also said it would " work itself out '', and I needed to do nothing further, but that it was clearly an AES problem, and that XXXX did not have anything to do with it. 

On XX/XX/XXXX, I received a second bill from AES for payment on this loan. Two bills and collection attempts on the same alleged loan within 2 weeks, when I had already called to dispute, and been told " don't worry about it, no action needed ''. 

I called AES and spoke with XXXX # XXXX, who said that she could not answer any questions about the account. I explained the history on this matter, and requested immediate resolution. XXXX said she couldn't answer any questions, and " just answered the phone '', and wanted to transfer my call. After the literal hours I spent on XX/XX/XXXX, I was reluctant to be shoveled to yet another uninformed and unhelpful person. After several insistent requests as to where, exactly, she intended to transfer my call, XXXX told me she would be referring me to the " Student Loans Department '', which is odd, since the whole business purpose of AES is " student loans '', so when one calls the number on the " student loan '' bill, does one not reach anyone who deals with " student loans ''? I agreed to be transferred, and XXXX # XXXX took my call. 

XXXX told me that this alleged loan was a PHEAA loan, but then retracted that statement and agreed it appeared to be a XXXX loan. He alleged that payments were made on this loan as late as XX/XX/XXXX, which is false. XXXX also claimed that there is yet another loan with a balance due, however, as of this date, I have received no information on any additional loan. After a lengthy discussion in which I gave XXXX the recent details of the bills from AES, and my information I had gathered from all my calls, I requested that AES ( 1 ) cease collection on this nonexistent loan, ( 2 ) provide evidence that any debt is substantiated, ( 3 ) suspend all internal action while this matter is under dispute, and ( 4 ) suspend any further action, such as any credit reports, accrual of interest, or penalties during this period. 

To date, I have spent approximately 4 hours on the phone attempting to track down anyone who could competently address and resolve this ridiculous debt collection for alleged loans which have been paid in full for nearly 15 years. There are several recent court cases in which AES has been found to have poor and insufficient records, unsubstantiated debts, and collection practices in violation of federal law. It is beyond ridiculous that any consumer is put in the position of having to spend hours of valuable time to correct records on a 15 year old debt paid in full, and it is unconscionable that any financial institution has the power to wage a collection campaign and record false allegations of nonpayment without a court order. 

I request that the CFPB investigate my own issue, and, by extension, what, according to AES 's own employees ' statements to me, is a large scale case of a mistaken collection campaign. It is conceivable that, for certain small amounts like mine, AES is intentionally using scare tactics to collect on nonexistent loans from many people who, like me, can not or do not want to spend the time dredging up records, languishing on " hold '', and dealing with tens of layers of anonymous, internal bureaucracy. Additionally, I will want to know the statute of limitations on collection for a loan like this. It is, as Employee XXXX XXXX said, evidence enough that I had XXXX communications from any loan service since XX/XX/XXXX. 

AES is at best willfully ignorant and mismanaged, and at worst engaged in a large scale fraudulent collection practice, using their power as a financial institution to threaten individuals into paying amounts they do not owe, without any basis in fact or evidence. Because lending institutions have the power to impact credit reports without warning or meaningful citizen recourse, and thus all personal finances, the mere transmission of an erroneous bill is sufficiently threatening to constitute a violation of rights.