Consumer complaint received 2023-08-08
Product: Debt collection — Private student loan debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: LegumFitzpatrick, PLC

Complaint:
In XXXX, I filed a complaint against my loan servicer XXXX XXXX XXXX with whom I had a private student loan with. I received a response back from XXXX XXXX XXXX stating that my servicer had changed, during the time that I was in XXXX XXXX XXXX from XXXX. Once my XXXX XXXX XXXX was successfully discharged, my student loan was placed with a law firm called XXXX XXXX. I was unaware of this significant change as I never received any communication. Also, it seems like unfair debt collection to be discharged out of a XXXX XXXX reorganization plan and not be given an opportunity to get on a payment plan or for payments to restart with your loan servicer. In addition, my mother XXXX XXXX was the cosigner on my student loan and she was also contacted after my bankruptcy discharge to make payments on the loan in which she made a payment of XXXX XXXX dollars to help reduce the overall balance. I recently found out less than XXXX was applied to the principal balance. Subsequently, during my attempts to dispute the debt through CFPB complaints, XXXX XXXX XXXX XXXX new loan servicer for my private loan took me to court and a judgment was placed against my primary residence. I never even received a summons from XXXX to notify me to go to court regarding my student loan debt. Based on what I utilized my private student loan for the original debt that I acquired fit the criteria to be XXXX during my XXXX XXXX discharge in XXXX. I have owned my home for over XXXX years and now in attempt to sale my home, I have a judgment of over XXXX XXXX dollars due with daily interest of {$2.00} a day, since the judgment was granted in XXXX. My mother has also been contacted many times from XXXX by the collection company regarding the debt in question and has made additional payments, however the judgment amount never has been reduced by XXXX XXXX XXXX XXXX is now defunct and I can not get an itemized account summary with all the payments received. I requested a loan account summary from XXXX XXXX but I never was provided XXXX. I recently communicated with XXXX XXXX at XXXX XXXX regarding paying off the judgment principal balance during my home settlement and the interest amount due be paid in a payment plan so that the judgment can be lifted but mysteriously she never responded to my inquiry/email. There were additional recipients on the email ( XXXX and XXXX XXXX and they also never responded. The interest should be forgiven or significantly reduced for this judgment. XXXX XXXX sent a judgment release letter to the title company, stating my judgment can be released for almost XXXX. In addition to the funds my mother has paid on the loan, they will have collected XXXX or more off of a student loan that originated for far less. I do not think it is fair to myself as a debtor to be treated in this manner with no recourse.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation