Consumer complaint received 2024-12-07 00:00:00
Product: Debt collection — Federal student loan debt
Issue: False statements or representation — Indicated you were committing crime by not paying debt
Company: EdFinancial Services
State: CA

Complaint narrative:
Dear Customer Resolutions Unit, Thank you for your response to my recent complaint submitted to the Consumer Financial Protection Bureau ( CFPB ) regarding the student loan account serviced by your company on behalf of the U.S. Department of Education. I appreciate your acknowledgment of my concerns and the detailed information you provided. 

However, after reviewing your response and the enclosed copy of my Master Promissory Note ( MPN ), I must address several points that remain unresolved or inadequately addressed : Legal Authority and Loan Discharge Eligibility You stated that my loans are governed by the Higher Education Act of 1965 ( HEA ), as amended, and that I am obligated to repay in full unless eligible for discharge under a specific provision. However : Please provide a comprehensive list of all discharge provisions applicable to loans issued under Part [ B/D ], Title IV of the HEA.

Explain how these provisions specifically apply to my current circumstances.

Additionally, while referencing my Master Promissory Note ( MPN ), your response did not establish sufficient grounds to validate the debt as required by 15 U.S.C. 1692g.

Debt Validation Requirements under 15 U.S.C. 1692g Your response failed to address my explicit request for debt validation as required by the Fair Debt Collection Practices Act ( FDCPA ). Specifically, you did not : Provide clear documentation demonstrating the original creditor 's claim or unbroken chain of servicing rights.

Verify the debt with an itemized breakdown of the balance, including principal, interest, and fees.

Offer certified evidence supporting the legitimacy of the debt and your authority to service it.

Until full validation is provided, continued collection activity or reporting of this debt may constitute a violation of federal law.

Clarification of Compliance with Consumer Protection Laws As a federal loan servicer, you are required to comply with all provisions of the Fair Credit Reporting Act ( FCRA ) under 15 U.S.C. 1681s-2, alongside the HEA.

Please confirm that your servicing practices meet these requirements.

If any discrepancies or violations have occurred, I request immediate rectification and documentation of corrective actions. 
Income-Driven Repayment ( XXXX ) Application Status Your letter referenced processing delays related to the XXXX XXXX and XXXX applications. I request the following clarifications : Has my account been placed into forbearance due to these delays? 
How does this affect my loan balance, accrued interest, and potential eligibility for future discharge or forgiveness? 
Ombudsman Escalation Process While I acknowledge the option to escalate to the Ombudsman Group, I am seeking resolution directly from your office at this stage. Please confirm your willingness to address my concerns fully before escalation becomes necessary. 

Payment and Plan Adjustments Your letter suggested alternative repayment plans, but I request additional clarification : Provide the exact steps to transition to an XXXX  plan under current forbearance conditions. 
Include a timeline for processing and implementation once an application is submitted. 
Additional Information Requested As outlined in my initial letter, I request the following : A complete copy of my consumer file related to this account. 
A certified copy of the original agreement between myself and the lender, with supporting documentation from the Department of Education verifying your authority to service the loan. 
A notarized affidavit certifying the accuracy of the information being reported. 
Tender of Payment and UCC 3-603 In your response, you stated that I am obligated to pay the loan in " legal U.S. tender. '' It is important to highlight the provisions of UCC 3-603, which govern the tender of payment : Tender and Discharge of Obligations : If I tender payment of my obligation and it is refused by the person entitled to enforce the instrument, the obligation is discharged to the extent of the amount tendered.

Discharge of Interest : If I tender the amount due on the loan, the obligation to pay interest on the tendered amount after the due date is discharged.

Presentment Requirements : As the obligor, if I am ready and able to pay at the due date but payment is refused, I am deemed to have tendered payment.

This raises critical questions : If a tender of payment were made, would you accept or refuse it?

What specific actions have you taken to ensure compliance with UCC provisions regarding tender and discharge?

I request that you clarify your stance on this matter and provide documentation showing compliance with UCC 3-603 in handling payment obligations.

Next Steps This letter serves as both a rebuttal to your prior response and a formal reiteration of my original request. Please ensure that all requested documentation and explanations are provided within XXXX  days of receipt of this letter. Failure to comply with these requirements may result in formal disputes, additional complaints to the CFPB, and potential legal action to enforce my rights under federal law. 

Thank you for your immediate attention to this matter. I look forward to your timely and comprehensive response.

Company response to consumer: Closed with explanation