Consumer complaint received 2016-08-24
Product: Credit card — 
Issue: Billing disputes — 
Company: Army and Air Force Exchange Service (VA)

Dear Consumer Financial Protect ion Bureau. 
I have a debt with XXXX that was originally {$7800.00}. We made a payments on this debt for {$250.00} each month. 
At XXXX point due to hardship we got behind, XXXX informed us that we had to pay at-least {$640.00} for them to make any kind of payment agreement with us. 
We did not have over {$600.00} to pay. My husband told me not to worry, said that what would happen is XXXX since he was retired service member would take a payment each month of his check. Time went by and I got a letter from XXXX collection agency called XXXX. They stated that I owed them {$9000.00} I informed that that this was incorrect and that I only owed XXXX {$7800.00}, I told them that I disputed this amount and that it was incorrect. ( In addition I informed XXXX that the amount did not even include the payment that was made by XXXX garnishing our taxes. XXXX never told us they were going to garnish it, we just found out when we were waiting for the tax return for home repairs and to pay bills and the money never came ) So I informed XXXX ) XXXX that I disputed the now {$10000.00} debt amount and also asked for a settlement on the correct amount that I owed. 
An amount of time went by and I did not get any response to my dispute. But I then got a letter from XXXX stating that I now owed XXXX over {$10000.00}. That was there response to my dispute letter. I then called them and XXXX and went to many different rude encounters and debt shaming, I was told different things. XXXX told me that they did not have to sent me a response to my dispute letter and that I now owed {$10000.00} because while I was still waiting for an answer to the dispute letter, the interest was continued to be charged. They furthermore said that it was Aafes who was charging this interest and also the penalty fee of almost 26 % When I inquired about not getting any correspondence/ monthly statements, I was told by both XXXX and XXXX that they did not have to send me any statements. Even when I made payments they were not required to do so. Furthermore, that XXXX would not settle unless I had most of the amount to pay them back. Also that the interest would continued to be charged in addition to the penalty I was charged. 
After many rude agents I spoke to a XXXX supervisor who asked me if I could get a home loan to pay the debt, I shared with her all my hardship, loss of business, health problems, job lose, and special needs, and that I had not even been able to get a loan to pay for my brothers funeral. She said we can make you a hardship agreement and we made the agreement for me to pay {$130.00} each month. She then went on and said but for {$130.00} each month you understand you are only paying interest and you will never be able to pay XXXX of and all you will be paying for the rest of your live is interest. 
I asked her again if XXXX would make a settlement or lower the interest any thing and was told no. I am looking for employement that is conducive with my health and personal circumstances, and my estranged husband tried to pay the XXXX a couple of times but he is not able to make this payment all the times. In addition the {$130.00} payment is only paying on interest but I also got charged a penalty. and on the paperwork that I signed it stated that the penalty for not paying is either a one time large penalty fee or continued interest. It did not state that I would be charged both this large penalty fee of almost 26 % and interest would be continued indefinitely. Nor that XXXX is not required to send me any statements even when I pay them. I have no idea what I owe at this point, the fees and penalties keep adding up and XXXX do n't send me any statements, refuse to settle, or lower the interest. And I now got an email from an official XXXX representative threatening me that the collection agency can charge me up to 26 % interest per month! Is that even legaL