Consumer complaint received 2021-07-01 00:00:00
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Army and Air Force Exchange Service
State: GA

Complaint narrative:
On or about XX/XX/2021 I attempted to reach out to AFFES on my military star account to make payment arrangements. I was informed that the account was sent to inhouse collections represented by XXXX XXXX XXXX and that I had to discuss my account with them because they could no longer accept payments from me. I spoke with an agent from that agency and they could not answer my question on whether AFFES would agree to not report my account as in collections on my credit reports if I made a payment arrangement of a XXXX dollars a month. XXXX XXXX XXXX transferred me back to AAFES after they advised that they do not report to the credit agencies and only AAFES reported to the credit agencies. The department in AFFES I was transferred to was closed for the business day and I was unable to ask them this question. 

On XX/XX/2021, I reached out to AAFES again to ask if they would consider not reporting my account as in collections if I made payment arrangements to pay off the debt. I was referred to XXXX Transitioning System who referred me back to AAFES and who referred me back to XXXX XXXX where I spoke with a Ms. XXXX XXXX. Ms . XXXX informed me that no payment arrangement on the debt would stop garnishments or liens against me, even though there are no court orders for a garnishment. I asked her for justification on how they could garnish my income in writing and she refused to give that justification to me in writing and stated that the agency does not own the debt so they could not give that to me in writing. She also advised that the agency would not report to AAFES on any payment I made to the collection agency ( this greatly concerned me and I expressed this concern considering that I am attempting to obtain a mortgage loan and I would not be able to show that I am paying on the debt ). 

Ms . XXXX and another agent from XXXX Transitioning that I spoke with after I called AAFES back to resolve the issue insisted that they had the right to garnish income because the debt was due in full and if I did not pay it in full, even with a payment arrangement - they would offset the debt and take any future income from me to pay towards that debt. They also refused to put any payment arrangement agreement into writing even though I am terrified that they will clean out my entire bank account if I give them my bank information because I have nothing in writing that says that they will only pull out a XXXX dollars a month. 

The second agent still insisted on making a payment arrangement with me and when I refused she said she had to warn me about this refusal and that it would refer to the proof of debt - the only document in writing they would send me but promised to put any amount paid on the account on a receipt but nothing else would be put into writing on the debt. She also promised to report to AAFES and the credit agencies if I made a payment arrangement, even though the other agents refused to do as such ; but like the other agents, she refused to put this promise into a written agreement unless I first made a payment. To make matters worse, she said that my account was no longer inhouse and that they were an outside collection agency even after denying they own the debt and could not report to the credit agencies on my behalf. 

I feel frightened, helpless, and trapped. I can not pay the debt in full but I can not afford for AAFES or for XXXX XXXX XXXX to take all of my money out of bank accounts or offset any income that comes in to my account. I am trying to get my finances straight and my debts settled but I feel my only resolution is bankruptcy because I will live in fear of the these agencies taking my money from me. I can not even set up a payment arrangement on the debt because they have told me that it would not stop the offset of the debt and I have no way of building credit to obtain additional resources to help pay off the debt later because they are not clear and refuse to put into writing if they will or will not report to AAFES and the credit reporting agencies that I am making timely payments on the debt. 

This is my last and desperate step to settle this debt in a fair and legal manner without living in fear that any arrangement I make to pay on this debt will result in clearing out my bank account -- or the garnishment of any wages. They refuse to justify other than stating US codes and not any that would cover this issue and by stating page 303 on my loan agreement with AAFES of which I do not have a copy -- that they could garnish income from me. 

Can you please help me with this issue and let me know my rights? How is it they are able to take my money without even letting me know in writing how much they will take at a time until they collect the entire debt or considering that I have basic living bills that have to be paid so that I am not homeless or without food and utilities? How is it they can refuse to report positive activity on a credit report when a payment arrangement is made to pay on the debt even as they report negative information on a credit report while each agency not being clear which one is reporting to the credit reporting agencies and what I can do for other than paying the bill in full of which I can not financially afford to pay in full? How is it they are able to take money from a payment arrangement and still garnish my income even while refusing to put into writing that they will only take a XXXX dollars a month from my bank account each month? 

They will not refuse a payment arrangement but they refuse to put into writing how much they will take a month and that if I give them my account information that they will not take more than the XXXX. This is because again, they insist they can take my money without a court order. As such, I would not be making a real payment arrangement. I would merely be providing them with my bank account information to do with my money in my accounts as they wish with no repercussions against them because I have nothing in writing to protect me. 

Please, please, help me on this issue. It is causing a great deal of anxiety and stress.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation