Consumer complaint received 01-04-2018 about Student loan (Federal student loan servicing) with Immediate Credit Recovery (PA).
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint: On XXXX XXXX, XXXX, I received a letter from Immediate Credit Recovery dated XXXX XXXX, XXXX on Department of Education letterhead, stating that I had 30 days to address a potential wage garnishment - either through a hearing or making arrangements to consolidate or pay the debt. It is the first letter of any kind that I have received from the debt collector. 

Prior to receipt of the letter, I was garnished by the Department of Education for over 3 years to pay back student loans that fell into default after I was diagnosed with XXXX XXXX in the fall of XXXX. I was doing well financially and attending XXXX University at the time. I had great credit, credit cards and a car loan that I paid on time each month prior to diagnosis. Needless to say I feel behind on almost every bill and my credit plummeted. I soon fell into default on my student loans. I never resumed schooling at XXXX University and ended my pursuit of a degree during my junior year. 

Fast forward to the present time - I can say that I am still recovering from my illness and the stress and trauma over my lack of financial adequacy. I feel that I have been beaten down by creditors and collection agencies for years, only to fall victim by their many tactics and deceitful practices. 

With regard to the letter from Immediate Credit Recovery, it stated that the Department of Education would initiate a wage garnishment if I did not act within 30 days to either contest the debt or make arrangements to pay based on income. I made a call within the week to address my concern and to also address the untimely mailing, which did not allot me 30 days to comply. 

After speaking with XXXX XXXX XXXX on the phone, it was my understanding that I would receive correspondence with guidance on submitting income documentation, bills etc. to support a payment arrangement. I never received a correspondence. However during the time that I was waiting for a letter via U.S. mail or at the very least, an email, I began working on gathering the income verification, lease information and billing information requested. While doing so, I ran into constraints around getting the requested paperwork. I reached out to XXXX XXXX on several occasions to request either an adjustment to the types of documentation needed or more time to gather the information. 

I was not able to make a second phone contact or any further contact with the Immediate Credit Recovery representative, XXXX XXXX within the 30 day time frame. I feel I was intentionally given the run around by other service representatives in and outside of the AWG department. I had been informed on two separate calls to the collection agency that XXXX XXXX 's team was in a meeting and would handle calls soon after. I never received a call. 

Because of how quickly things transpired to move against me, I feel that Immediate Credit Recovery acted unfairly and in a way that ensured I would be moved into administrative wage garnishment. They would stand to gain over 6,000 in fees for managing the debt collection, so I believe it was in their best interest not to counsel me fully, nor give me the necessary tools and guidance to avoid wage garnishment. Therefore, I believe there was incentive not to send letters to me prior to wage garnishment notification and not to correspond with me via telephone or send me emails to help me send in the needed paperwork to stop garnishment. 

After much research, I found that I could potentially have my student loans discharged if it was determined that I had a XXXX XXXX XXXX XXXX I immediately initiated the process on the eve of XXXX XXXX, XXXX, as I new a wage garnishment would be a burden to my family - as I had been garnished for over 3 years for student loans just prior to the notification from Immediate Credit Recovery. 

I also did research to find that the end of a 30 day notice can not fall on a Sunday, so I felt I would be safe with initiating an application for XXXX XXXX XXXX XXXX on XXXX XXXX, via XXXX. 

XXXX was quick to respond and begin the process, with a first step to request that the Department of Education and Immediate Credit Recovery cease collections until my application was received and reviewed. I received a letter from XXXX on XXXX XXXX, XXXX - approximately one week after  their dated correspondence of XXXX XXXX, XXXX. The letter enclosed an application and next steps to follow for processing. The letter also noted all loans and amounts outstanding, the creditor ( Dept. of Ed ) and that the loan holders were contacted and instructed to suspend collection activity on the loans for a period of 120 days beginning XXXX XXXX, XXXX and ending XXXX XXXX, XXXX. It also stated that I would not be required to make voluntary payments and that the suspension will give me time to complete the TPD application and return for processing. It also stated that any wage garnishment payments already in will have to continue until a decision is made to discharge the loan debts. 

Receiving the notification gave me a sense of relief and I felt a burden lift. It was n't until I received a letter for the Department of Education today, XXXX XXXX, XXXX, that my stress and fear returned. The letter is dated XXXX XXXX, XXXX and is a FINAL Notice of Wage Garnishment for Debt Owed to U.S. Government. The language stated that garnishment would begin and my employer notified. I immediately called Immediate Credit Recovery and got an automated system. I could not connect with my representative XXXX XXXX or an alternate representative, as I was not directed to any other person for assistance. I then called XXXX and was met with great concern about the process. XXXX stated that the followed through with due process and that the Department of Education and Immediate Credit Recovery may be acting in a way that could be deemed unfair and not in keeping with timelines and fair collection activity. 

Seeing that I have gotten little relief from Immediate Credit Recovery, I am writing to you to throw myself at the mercy of your office and plead for more time to resolve this issue or at the very least find out if I am eligible for loan discharge. 

A wage garnishment would be a hardship on me and my family. I am also exploring bankruptcy as a last attempt to keep my financial situation as stable as possible. 

Thank you so much for your consideration and taking the time to hear my case. 

Best Regards, XXXX XXXX

Company response to consumer: Closed with explanation