Consumer complaint received 2025-09-03 00:00:00
Product: Debt collection — Federal student loan debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Servicer under contract with Federal Student Aid
State: MO

Complaint narrative:
I am filing this complaint against the XXXX Department of Education and its servicer Aidvantage for knowingly, willfully, and recklessly furnishing false, misleading, and unlawfully re-aged information to the nationwide credit reporting agencies ( XXXX XXXX XXXX XXXX XXXX 

The Dept. of Education / XXXX is the source of the false student loan reporting that now appears across all three major credit bureaus. Their actions have resulted in derogatory tradelines, false late payment histories, unlawful re-aging into XXXX, and ongoing harm to my credit profile, financial opportunities, and reputation. 

Factual Background The accounts in question are federal student loans serviced by XXXX on behalf of the U.S. Department of Education.

These loans are reported as installment accounts. 
Dept. of Ed XXXX XXXX has furnished data showing XXXX, XXXX, and XXXX day late payments across multiple months. 
Furnishing records show contradictory last payment dates ( XXXX vs. XXXX ), depending on the bureau. 
Furnishing updates from Dept. of Ed / XXXX make it appear as though the loans remain delinquent in XXXX, despite the fact that the Date of First Delinquency ( DOFD ) occurred years earlier. 

Contradictions in Furnishing XXXX. Active Delinquency vs. Closed/Charged-off Accounts Dept. of Ed / XXXX furnished information that portrays loans as both charged off/closed and actively past due. This is legally impossible. 
XXXX. Illegal Re-aging into XXXX XXXX has repeatedly updated tradelines into XXXX, falsely extending delinquency status and making old late payments appear new. This is classic unlawful re-aging. 
XXXX. XXXX XXXX XXXX XXXX XXXX reports last payment in XXXX, while XXXX shows XXXX. Such conflicts can only arise from inconsistent or careless furnishing. 



Legal Violations by Dept. of Education / XXXX  Fair Credit Reporting Act ( FCRA ) 623 ( a ) ( 1 ) ( A ), 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) : Furnishers may not provide information they know or should know is inaccurate.

623 ( a ) ( 5 ), 15 U.S.C. 1681s-2 ( a ) ( 5 ) : Furnishers must report the actual DOFD. Dept. of EXXXX / XXXX unlawfully re-aged accounts. 
623 ( b ), 15 U.S.C. 1681s-2 ( b ) : Furnishers must investigate disputes and correct or delete inaccurate information. They failed to do so.

Fair Debt Collection Practices Act ( FDCPA ) 807 ( 2 ) ( A ), 15 U.S.C. 1692e ( 2 ) ( A ) : False representation of the character, amount, or legal status of a debt.

807 ( 10 ), 15 U.S.C. 1692e ( 10 ) : Deceptive furnishing by misrepresenting the age and status of the loans. 



Case Law Precedents XXXX XXXX XXXX & XXXX, XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) : Furnishers who fail to investigate and correct disputes are liable under FCRA. 
XXXX v. XXXX & XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Furnishers can not continue to report misleading data after dispute. 
XXXX v. XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX. XXXX ) : Furnisher liability for failing to provide accurate DOFD. 
XXXXXXXX XXXX XXXX XXXX XXXXXXXX XXXX ( XXXX Cir. XXXX ) : Continued furnishing of false data exposes both CRAs and furnishers to liability. 
XXXX XXXX XXXX XXXXXXXX XXXX XXXX ( XXXX Cir. XXXX ) : Reinforces duty of accuracy and reinvestigation in credit reporting. 



XXXX XXXX Precedents CFPB v. XXXX  ( XXXX ) : Student loan servicer sued for deceptive practices, misreporting, and unlawful handling of borrower accounts. 
CFPB v. XXXX XXXX ( XXXX ) : XXXX XXXX fined for misreporting student loan payment histories. 
FTC & CFPB Supervisory Highlights : Federal student loan servicers repeatedly cited for accuracy failures and improper furnishing. 



XXXXXXXX XXXX XXXX XXXX XXXX / XXXX unlawful furnishing has caused direct and ongoing harm : Suppressed Credit Scores : My scores are pushed into the low XXXX due to late payment histories. 
Credit Denials : I have been denied credit cards, auto loans, and housing due to this false reporting. 
XXXX XXXX XXXX : On approvals, I face inflated costs of credit. 
XXXX XXXX : Landlords reviewing these tradelines view me as unreliable. 
Employment Damage : XXXX conducting background checks see me as financially irresponsible. 
Emotional Distress : XXXX falsely labeled delinquent years later is humiliating and stressful. 

This is not simply inaccurate reporting it is systemic misconduct by the furnisher of federal loan data.

Company response to consumer: Untimely response