Consumer complaint received 2025-02-10 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Reliant Capital Solutions, LLC
State: MA

Complaint narrative:
I was a student at XXXX XXXX  ( XXXX XXXX XXXX, XXXX, XXXX  XXXX ) and graduated in XX/XX/XXXX. While attending, I took out an {$XXXX} XXXX XXXX XXXX directly through the university to complete my education. 

After graduating, I made payments on this loan and had reduced the balance to {$XXXX}. However, I began struggling to keep up with payments due to managing over {$XXXX} in federal student loans and other financial obligations. On XX/XX/XXXX, I submitted a deferment request due to financial hardship, specifically following an unexpected medical procedure that required an additional {$XXXX} out-of-pocket expense not fully covered by insurance ( please see the attached deferment request for reference ). 

That deferment request was denied. As a result, my inability to make the minimum payments caused the outstanding balance to grow. In XX/XX/XXXX, the minimum payment due was {$XXXX}, but after several months of missed payments, it increased to $ XXXX amount I was unable to afford. Due to these missed payments, the loan was sent to a debt collector, XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX, XXXX, XXXX  XXXX ), in XX/XX/XXXX. 

Upon receiving a letter from XXXX XXXX XXXX XXXX, I communicated with them via mail, requesting validation of the debt and verification that they were legally entitled to my personal information under the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 ( b ). Several letters were exchanged in which I requested the following information ( please see the attached original letter sent on XX/XX/XXXX ) : A detailed explanation of the debt, including what the alleged amount is for A breakdown of how the amount was calculated Copies of any documents showing that I agreed to pay the stated amount Verification or a copy of any judgment, if applicable Identification of the original creditor Proof that the Statute of Limitations has not expired on this account Evidence that XXXX XXXX XXXX XXXX is licensed to collect in my state Their license numbers and the identity of their Registered Agent I communicated with XXXX XXXX XXXX XXXX via mail for several months, repeatedly requesting the required documents. The last letter I sent reiterating my request was on XX/XX/XXXX ( see attached ). XXXX XXXX never responded, so I sent follow-up letters on XX/XX/XXXX, and again on XX/XX/XXXX. In these letters, I stated that they had failed to validate the debt and, as a result, it should not be reported on my credit history. Subsequently, the debt was removed from my credit report. 

On XX/XX/XXXX, I received a letter from XXXX University stating that I had a past-due balance of {$XXXX} for the XXXX Incentive XXXX XXXX XXXX The letter urged me to either pay the balance in full or contact them to set up payment arrangements and provided the email XXXX for assistance ( see attached ). 

I reached out to the provided email address on XX/XX/XXXX, asking for guidance on resolving the issue. However, the response I received pertained to a different loan service provider and did not address my XXXX loan ( see attached email communication ). 

Despite XXXX XXXX letter indicating that the loan had been reopened with their institution and that payments should be made to them directly, the loan has since been transferred to another collection agency, XXXX XXXX XXXX ( XXXX XXXX XXXX, XXXX, XXXX  XXXX ). I have already been in communication with this collection agency to validate the same information I previously requested from XXXX XXXX. Additionally, I am seeking clarification as to why the balance has now increased to {$XXXX}, which exceeds the original loan amount. 

The XXXX loan was previously reported to the credit bureaus as a collection account until I disputed it, as XXXX XXXX was unable to validate the debt. As stated earlier, it was removed from my credit report in the fall of XXXX. 

However, after receiving the letter from XXXX regarding the open loan, my credit report now reflects XXXX missed payments. These missed payments were not previously reported over the past XXXX years while I was actively communicating with the debt collector to validate the debt. As a result of these newly reported late payments, my payment history has dropped, severely impacting my XXXX XXXX. Previously, my payment history was at XXXX  %, but it has now declined due to XXXX retroactively reporting XXXX years of late paymentseven though, for a year and a half of that period, the debt was being handled by a third party with whom I was actively trying to resolve the issue.

Company response to consumer: Closed with explanation