Consumer complaint received 2021-10-18
Product: Debt collection — Federal student loan debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: ECMC GROUP, INC. (VA)

Complaint:
Back in XXXX, my wife and I went back to school while living in XXXX. Applying for financial aid, PHEAA provided services and secured our funding originally. We investigated our records, and this is what we found : Husband : FFELP Stafford Unsubsidized from XXXX XXXX XXXX  XXXX XXXX XXXX for {$870.00} FFELP Stafford Subsidized from XXXX XXXX XXXX  XXXX XXXX XXXX for {$2600.00} Wife : FFELP Stafford Unsubsidized from XXXX XXXX, XXXX for {$4000.00} FFELP Stafford Subsidized from XXXX XXXX, XXXX for {$1200.00} After school ended and we started preparing for repayment, we had family issues and entered forbearances and deferments. We moved to XXXX  to make a better life as I took a XXXX  XXXX  career. While this happened, our loans were serviced by PHEAA, XXXX XXXX, and XXXX. We made payments on these loans but can not find records from the original loans in our files, nor can we find them by contacting the providers. XXXX explained to XXXX that it would be better for us to consolidate all our loans into one. In XXXX, when asking for help they convinced us to consolidate. XXXX entered us into a spousal consolidation loan. It was explained to us that it would be easier to manage one student loan payment instead of 4. Trusting them, we entered this. Our loan was then sent to XXXX for {$12000.00}. 
We made numerous payments to XXXX, all the while under the understanding that we were paying off a student loan. In XXXX we had to file bankruptcy after making 10 successful payments. We filed a chapter XXXX, and XXXX transferred the debt to ECMC, who filed a claim in the plan for {$12000.00}. ( after successful payments the balance is HIGHER ). ECMC accepted payments in the plan. When we were discharged, ECMC transferred to debt BACK to XXXX for {$13000.00} which is over {$1400.00} HIGHER than the claim that went into the plan. It is not fair that XXXX transfers debt to another company during the bankruptcy only to take it back afterwards at a HIGHER rate, and having a company accept payments in a plan they submitted a claim for! 
We began to make payments again. A combination of going back to school, family issues, loss of wifes income from XXXX through XXXX, and an obvious unclear understanding of what we owed had us filing another chapter XXXX in XXXX. Again, a claim was filed in the plan. Again, ECMC took the debt from XXXX. Again, they accepted payments in this plan. Again, it was successfully discharged from the court. AGAIN, ECMC transferred the debt BACK to XXXX after filing a claim and accepting payments in a second chapter XXXX. ONLY THIS time, the balance entered in the plan in XX/XX/XXXX was {$15000.00}, although the balance transferred TO ECMC months before was only {$12000.00}. In XXXX of XXXX, after a second successful discharge, ECMC transferred this debt BACK to XXXX, and the amount was {$17000.00}. So, in summary, to this point, we had separate loans, got convinced into consolidating by XXXX, wife stopped working, I made payments as best as possible, and it went IN and OUT of TWO Chapter XXXX proceedings, but entered as ECMC from XXXX, only to be transferred back. 
We continued making payments to the best of our ability in XXXX, XXXX, and XXXX. We asked about federal suspension of payments due to COVID, and they tell us we are NOT in a federal student loan, but in a commercially owned spousal consolidation loan. 
I immediately asked if this is the case, why was the debt not discharged? They refused to answer, only told us we were behind on payments. This is obviously a loophole in the system they are banking on. Applying as a federal student loan to navigate to their advantage, then relying on the status as a commercially owned spousal consolidation loan to also navigate to their advantage. Now, we are getting notices from BOTH ECMC AND XXXX. TWO separate debts from ONE line of credit???? HOW!!!!!!! 
This has also destroyed our credit that we worked so very hard to rebuild. We climbed out of the bad standing, had scores at or over 700, and are now sunk again. 
Now, making things worse, my wife is suffering from XXXX XXXX-XXXX XXXX  XXXX from a work-related exposure. Not ONLY is her employer refusing to help her, but she has been out of work since XXXX of XXXX. We have lost her income and incurred ALL her medical care debt since her employer will not help. I don't understand how student loans totaling {$8700.00} for the two of us back in XXXX are now totaling OVER {$19000.00}!!!! Over these years we have qualified for forbearances and deferments. These years also have us making numerous payments that we can not find anywhere on our balances. Where have our payments gone? And why does it show we owe so much for me only took out {$6000.00}.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation