Consumer complaint received 08/21/2016 about Debt collection (Federal student loan) with National Recoveries, Inc. (NY).
Issue: Disclosure verification of debt
Sub-issue: Right to dispute notice not received

Complaint: Greetings, I have a federal student loan from XXXX, which I attempted to dispute at around XXXX XXXX. I called them and was referred to a debt collection company called National Recoveries. When I contacted them, I had explained to the agent that answered that I wanted to dispute the loan because the school had not provided promised service, that I believed the school had breached the load agreement. The rep agent went on to tell me that if I wanted to dispute the balance I had to give them all my financial information and pay something toward the loan. 

I felt this was strange because I had only asked to file a dispute yet was being told that i could'nt. I was assured by the agent that I had to first make payments in good faith and that this was standard procedure. I was told by several agents in subsequent phone calls to National Recoveries that after about 8 months of payments they would take my dispute and review the loan and that maybe the loan would be discharged or placed into foreberance if my dispute checked out. They even said at that point i could even attend another college if I chose with a new round of loans. 

I felt coerced, but still cooperated by stating my financial and personal data as they requested. They had concluded that I should pay at least {$5.00} a month on autopay on my debit card. I plasced on card {$10.00} a month because my debit card charged for loading card and autopay {$2.00} each. at this time I was recieving $ XXXX unemployment and paying child support. 

Several months went by and National Recoveries was taking my funds from debit card. After about 3 months I had inquired about being able to began the process of disputing the balance. I was told that I still had not completed the initial payments and that I was supposed to sign a document that they must mail to me. this was the first time hearing this, I was upset about this because time had been wasted. they said they would send out a form ASAP. a week went by and nothing from the debt collector. Months went by and no forms were sent. My unemployment ran out and I had no source of income to pay. I tried calling the debt collector several times and was sent to voice mail recording saying someone would call me back in three days. which of course no one did. I had not heard anything from the National Recoveries since the end of XXXX On XXXX XXXX, XXXX I recieved a letter from XXXX. Payment center stating that they would take my taxes from this year forward unless I disputed the loan within 55 days from the day on the letter. I called them and I was instantly transferred to the National Recovies. I was both shocked and angered, because this company had previously stated in XXXX, that I had to make payments before being able to dispute the loan, but the letter i received from Dept. of Ed. said otherwise. the letter stated I needed to get a copy of the promissory note and my files from National Recoveries in order to file the dispute form. When I called National Recoveries, three weeks ago after receiving the letter from the Dept. of ED.. The debt collection agent that answered stated she had never heard of such a thing, being able to dispute the loan balance as I had discribed. I read the details of the letter I recieved to her. She then relented and said she would make a request for the documents to be sent and and that I should receive them in approximately five days. 

Two weeks later no mail from National Recoveries. the same pattern as in XXXX, I sent emails to their business head quarters stating unless they sent me the documents i needed to file a dispute I would file a complaint with the FTC. Still no response, I tried calling them back on XXXX XXXX to find out what happened, all calls were sent to voice mail after about 15 mins on hold on I need assistance.

Company response to consumer: Closed with explanation