Consumer complaint received 03/24/2016 about Debt collection (Federal student loan) with Collection Technology Incorporated (MI).
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint: Hello! I have a XXXX XXXX XXXX that is in default status. It is being serviced with the XXXX XXXX CTI ( Collection Technology Inc. ). Back in XXXX of XXXX I spoke with a representative at the company about rehabilitating my loan to get out of default status. She took all of my information, did a financial statment, and made me agree to have my monthly payments be automatically withdrawn from my bank account. I did question her at the time about why the payment had to be automatically withdrawn, and she explained that it is required for the rehabilitation. 

After XXXX took all of my information, she said my monthly payment would be $ XXXX/month during the rehabilitation process. CTI immediately withdrew the first payment that same day in XXXX XXXX. XXXX said all I had to do was fax/e-mail back a document allowing them to withdraw the payment from my bank account and that I was all set. 

A few days later, XXXX asked me to send her a few more documents. Proof of income and proof of payments on my other student loans. I did send both requested documents. 

Now, fast forward to XXXX XXXX. I have received a call from a representative again, XXXX XXXX. XXXX said my rehabilitation was to be completed in XXXX of XXXX, I just needed to sign the rehab agreement letter before it being completed. After a couple more weeks of back and fourth calls, I finally receive a copy of this letter. 

The rehab agreement letter was dated from back in XXXX, and it stated that I agreed to pay $ XXXX/month for 9 months to rehab my loan. I contacted Cti immediately and told them that I had never agreed to pay $ XXXX/month, I agreed to pay $ XXXX/month, which I had been - automatically withdrawn each month from my account. They claimed it stated {$250.00} because I never sent the required documents and if I was not paying $ XXXX/month my rehab would be invalid and would not be completed. 

I have been in touch with multiple reps to resolve this. I 've sent multiple documents. And the reps continue to brush it off, claiming their system is down and they PROMISE to call me back before the end of the day. Most recently, XXXX XXXX at CTI. I called her 4 times yesterday and everytime it was an excuse - her manager was in a meeting, the system was down, manager still in a meeting ... she promised to call back and never did. 

Now I am very upset. I never wanted my loans to go into default. I did n't know what I was getting myself into when I even signed for the loans. My parents did n't educate me on this. My school did not educate me. Prior to getting hired at my current job, I was unemployed for almost a year. I 've been working my tail off to get my life and finances together. That includes getting my student loans into good standing. 

Cti has been no help. I do not want this blemish on my credit report. This collection agency has turned this whole situation into a nightmare and has done nothing to assist me in getting it resolved. 

I do have documents, dates, names, and specific details if needed. 

PLEASE HELP!! 

-XXXX

Company response to consumer: Closed with explanation