Consumer complaint received 2025-06-08 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account status incorrect
Company: Nelnet, Inc.
State: TX

Complaint narrative:
Formal Demand for Debt Validation, Compliance with Federal and State Laws, and Immediate Deletion of Unvalidated Debt 1. Important Clarification This letter serves as a formal demand for validation and verification of the alleged debt you are reporting to credit reporting agencies under the following account : Account Name : DEPT OF EDUCATION/NELN Account Number : XXXX I am disputing this account and requesting full validation under federal and state laws. Please note that by making this request, I am not acknowledging or accepting ownership of this debt. This demand is made solely to ensure compliance with applicable laws and to verify the accuracy, legality, and legitimacy of the information being reported.

2. Legal Basis for My Requests As a debt collector and furnisher of information, you are required to comply with the following laws and standards : Fair Credit Reporting Act ( FCRA ) Fair Debt Collection Practices Act ( FDCPA ) Federal Trade Commission ( FTC ) Regulations Texas Finance Code ( Chapter 392 ) Metro 2 Compliance Standards e-OSCAR Dispute Resolution Procedures Failure to comply with these regulations may result in legal consequences, including complaints filed with the Consumer Financial Protection Bureau ( CFPB ) and the Federal Trade Commission ( FTC ), as well as potential legal action.

3. Specific Legal References and Demands 1. Permissible Purposes of Consumer Reports ( 15 U.S. Code 1681b ) : Under 15 U.S. Code 1681b, consumer reports may only be furnished under specific circumstances, including : In response to a court order, subpoena, or grand jury subpoena. 
With the written instructions of the consumer to whom it relates. 
For legitimate purposes such as credit transactions, employment, or underwriting of insurance. 
You are legally required to demonstrate that you have obtained my written consent to furnish or report this information. If you can not provide proof of such consent, you are in violation of 15 U.S. Code 1681b, and the negative information must be immediately removed from my credit report.

2. Duty to Ensure Accuracy ( 15 U.S. Code 1681e ) : As a furnisher of information, you are required to : Follow reasonable procedures to ensure maximum accuracy of the information reported to credit bureaus. 
Verify that the information you furnish is accurate, complete, and not misleading. 
If you have reported inaccurate, incomplete, or false information, you are in violation of 15 U.S. Code 1681e.

3. Consumer 's Right to Dispute ( 15 U.S. Code 1681i ) : Under the FCRA, I have the right to dispute inaccurate or unverifiable information. Upon receiving my dispute, you are required to : Investigate the dispute within 30 days and correct or delete any inaccurate or unverifiable information.

Provide me with a detailed audit trail of your investigation process.

Failure to investigate or correct inaccuracies constitutes a violation of 15 U.S. Code 1681i.

4. Responsibilities of Furnishers of Information ( 15 U.S. Code 1681s-2 ) : As a furnisher of credit information, you are required to : Ensure the accuracy and integrity of the data you report.

Promptly correct errors upon discovery or notification.

Failure to comply with these responsibilities may result in liability for damages under 15 U.S. Code 1681n and 1681o.

5. Validation of Debt ( 15 U.S. Code 1692g ) : Under the FDCPA, you are required to validate the alleged debt upon request. This includes : The amount of the debt.

The name of the original creditor.

Proof of your authority to collect the debt.

A copy of the agreement bearing my signature that created the debt obligation.

Failure to validate the debt within 30 days requires you to cease all collection activities and remove the negative information from my credit report.

6. Texas Finance Code ( Chapter 392 ) : Under Texas law, you are required to : File a surety bond with the Texas Secretary of State to operate as a debt collector in Texas.

Refrain from using harassment, threats, misrepresentation, or unfair practices. 
4. Legal Precedent : XXXX XXXX XXXX XXXX XXXX ( XX/XX/1997 ) XXXX XXXX XXXX XXXX XXXX XXXX ( XX/XX/1997 ) case established that consumer reporting agencies and furnishers of information have a grave responsibility under the FCRA to ensure the accuracy of information reported and to conduct a reasonable reinvestigation when a consumer disputes the completeness or accuracy of information. Specifically : The court held that under 15 U.S. Code 1681i ( a ), if disputed information is found to be inaccurate or can not be verified, the consumer reporting agency or furnisher of information must promptly delete such information.

The court also emphasized that a reinvestigation must go beyond merely parroting information from the original source. Instead, the agency or furnisher must take reasonable steps to verify the accuracy of the disputed information. 
In this case, the court concluded that failure to conduct a meaningful reinvestigation and reliance solely on the original sources information violated the FCRA and caused harm to the consumer. 

This case underscores your obligation to conduct a thorough investigation of the disputed account. If you can not verify the accuracy of the information, you are required by law to promptly delete it from my credit report. 

5. Documentation Requested In accordance with the above laws, I formally request the following : Proof of Debt Ownership : Provide a full chain of title from the original creditor to your agency, including any transfers or sales of the debt.

Itemized Billing Statement : A detailed breakdown of charges, including dates of service, adjustments, or payments.

Proof of Standing to Collect : A copy of the assignment agreement proving your authority to collect this debt.

Documentation demonstrating your legal right to report this debt to credit bureaus.

Statute of Limitations Verification : Provide the date of the last payment or billing statement to confirm whether this debt is within the legally enforceable period under Texas law.

Proof of Consent ( 15 U.S. Code 1681b ) : Demonstrate that you have my written consent to furnish or report this information to credit reporting agencies.

Audit Trail of Investigation : A detailed audit trail of your investigation process, including communications with credit reporting agencies and updates made to my credit file.

Proof of Surety Bond ( Texas Finance Code 392.101 ) : A copy of the required surety bond to operate as a debt collector in Texas.

Copy of Policies and Procedures : Provide a copy of your policies and procedures for investigating and reporting disputes under the FCRA and FDCPA. 
6. Legal Obligations During Validation Period Under 15 U.S. Code 1692g and 12 CFR 1006.34 ( c ), you must cease all collection activities, including reporting to credit bureaus, until you have provided the requested validation and verification.

Continued reporting of unvalidated debt during the validation period constitutes a violation of the FDCPA and FCRA and may result in legal consequences, including complaints with the CFPB and FTC and possible legal action for damages.

7. Request for Confirmation of Deletion If you are unable to validate this debt or it is found to be invalid, unverifiable, or time-barred, I demand that all references to this account be : Immediately deleted from my credit file. 
Written confirmation of the deletion provided to me within 30 days of receipt of this letter. 
8. Failure to Comply If you fail to respond to this validation request within 30 calendar days of receipt, I demand that all references to this account be deleted from my credit file. Additionally, I reserve the right to : File complaints with the CFPB, FTC, and Texas Attorney Generals Office.

Pursue legal action for damages caused by your actions under the FCRA, FDCPA, and Texas Finance Code.

9. Final Notice This letter serves as your final notice. I expect full compliance immediately. All future communications must be in writing and sent to the address listed above. Any further unauthorized actions will be documented and used as evidence in legal proceedings.

Company response to consumer: Closed with explanation