Consumer complaint received 2024-09-18 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Maximus Federal Services, Inc.
State: FL

Complaint narrative:
I am writing to formally request immediate correction and removal of inaccurate information being reported to the credit bureaus regarding my student loan Account # XXXX. It has come to my attention that this loan, which was placed under deferment and qualified for forgiveness, continues to reflect late payments and other negative information on my credit report, which is erroneous and in violation of multiple federal laws. 

Violations Under Student Loan Law and GAAP Standards Inaccurate Reporting in Violation of GAAP Standards : As a financial institution, you are required under Generally Accepted Accounting Principles ( GAAP ) to maintain accurate and truthful records. The continued reporting of late payments on a loan that was deferredand subsequently forgivenrepresents a direct breach of these principles. The concept of material accuracy under GAAP mandates that all financial representations, including those impacting credit reporting, must be truthful and free of material misstatements. The errors in reporting violate the very essence of GAAPs consistency and transparency standards.

Higher Education Act of 1965 ( 20 U.S.C. 1098e ) Violations in Deferment Reporting : Under federal law, student loans placed in deferment are not subject to penalties, late fees, or reporting of delinquency during the deferment period. My loan was under deferment, and the reporting of late payments constitutes a violation of my rights under the Higher Education Act, which prohibits lenders and servicers from reporting inaccurate statuses on deferred loans. 

Fair Credit Reporting Act ( FCRA ) Violation of Accurate Reporting ( 15 U.S.C. 1681 ) : Under the FCRA, creditors and credit reporting agencies have a duty to ensure that any information they provide is accurate, complete, and up to date. Reporting false late payments and other incorrect details about my student loan is a clear violation of this statute. I demand that this incorrect information be removed immediately, as it is materially damaging and not reflective of the true status of my loan.

Bankruptcy Law and Student Loans Bankruptcy Code ( 11 U.S.C. 523 ( a ) ( 8 ) ) Discharge of Student Loans : While student loans are generally non-dischargeable in bankruptcy, certain circumstances, including undue hardship or forgiveness, may qualify the loan for discharge. If any portion of my loan was supposed to be forgiven or discharged due to these circumstances, continued reporting of delinquent payments would also constitute a violation of the Bankruptcy Code, leading to further legal remedies.

Additional Violations Related to Loan Forgiveness Public Service Loan Forgiveness ( PSLF ) Program or Income-Driven Repayment ( IDR ) Forgiveness : If my loan qualified for forgiveness under either the PSLF or IDR programs, it is unlawful to continue reporting the loan as active or delinquent. The incorrect reporting of late payments violates the terms of these programs and impedes my legal right to the benefits provided therein. 

Consumer Financial Protection Bureau ( CFPB ) Guidelines : The CFPB has issued guidance regarding the accurate servicing and reporting of student loans, particularly in relation to forgiveness and deferment. Any continued misreporting is a violation of federal guidelines, and I reserve the right to seek additional relief through the CFPB. 

Loan 1-01 Direct Loan - Subsidized Balance : {$2200.00} Interest Rate : 3.40 % School : XXXX XXXX Loan 1-02 Direct Loan - Unsubsidized Balance : {$1600.00} Interest Rate : 6.80 % School : XXXX XXXX Formal Demand for Removal and Deletion In light of these significant violations, I demand the following : Immediate cessation of all inaccurate and false reporting regarding this student loan.

Correction and deletion of all negative entries, including late payments, from all three major credit reporting agencies ( XXXX, XXXX, and XXXX ). 

Written confirmation that the corrections have been made and that my loan has been accurately updated to reflect it's true deferred and forgiven status. 

Complete removal of the loan from my credit report if it qualifies for forgiveness, as prescribed under federal law. 

I expect a response and resolution to this matter within 30 days of receipt of this letter. Should you fail to comply with this request, I will have no alternative but to seek legal remedies available to me under the Fair Credit Reporting Act ( FCRA ), Higher Education Act, and other applicable laws. 

Thank you for your prompt attention to this urgent matter. Please consider this letter a formal dispute, and govern yourselves accordingly. Should you have any further questions, you may reach me at the contact information provided above. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation