Consumer complaint received 2025-01-19 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: Servicer under contract with Federal Student Aid
State: GA

Complaint narrative:
RE : Demand for Compensation for Violations of Federal Laws and Emotional Distress To Whom It May Concern : I am writing to formally demand compensation for the unauthorized disclosure of my personal information by the U.S. Department of Education to third parties, specifically credit agencies, including all major credit reporting agencies. This breach of my privacy rights, compounded by violations of the Privacy Act of 1974 and the Family Educational Rights and Privacy Act ( FERPA ), has caused significant financial and emotional harm. Furthermore, the widespread dissemination of my personal information to credit agencies resulted in prolonged lack of creditworthiness and access to financial opportunities for several years. 

Summary of Violations The Department of Education improperly shared my personal information, including my name, Social Security number, and sensitive educational and financial data, with credit agencies without my explicit authorization. This unauthorized disclosure has had severe and lasting consequences, including harm to my creditworthiness, financial stability, and emotional well-being. 

Legal Violations 1. Privacy Act of 1974 ( 5 U.S.C. 552a ) The Privacy Act of 1974 governs the protection of personal information maintained by federal agencies. Violations include : 1.Unauthorized Disclosure ( 552a ( b ) ) : Prohibits federal agencies from disclosing personal information to third parties without explicit consent, except under certain exceptions. The Departments disclosure to credit agencies without my consent constitutes a clear violation.

2.Failure to Maintain Accuracy ( 552a ( e ) ( 5 ) ) : Agencies are required to maintain records that are accurate, relevant, and complete. Sharing inaccurate or incomplete data worsens the impact of the disclosure.

3.Accountability Failure ( 552a ( c ) ) : The Department failed to document and maintain a record of the unauthorized disclosures, violating its obligations under the Privacy Act.

2. Family Educational Rights and Privacy Act ( FERPA ) FERPA is a federal law protecting the privacy of student education records. The Department of Education violated FERPA by : 1.Unauthorized Disclosure : Sharing educational and financial information without my prior written consent violates FERPAs requirement to protect the confidentiality of student records.

2.Failure to Provide Notification : FERPA mandates that students be notified of the disclosure of their education records, which the Department failed to do.

3. 15 U.S.C. 68016805- Gramm-Leach-Bliley Act ( GLBA ) The GLBA requires entities managing sensitive consumer financial information to implement safeguards to protect it. The Department of Education violated this law by : Failing to ensure the confidentiality and security of my personal data.

Allowing unauthorized access and dissemination of my personal data to multiple credit reporting agencies.

4. 16 CFR Part 313 - Privacy of Consumer Financial Information The Departments disclosure of my financial data to credit reporting agencies without proper safeguards or notification constitutes a violation of this regulation.

5. 15 U.S.C. 1681 ( Fair Credit Reporting Act - FCRA ) The Department of Education also violated key provisions of the FCRA : 1. 1681b : Permissible Purposes : My personal information was shared with credit agencies without permissible purposes or my explicit authorization.

2. 1681e ( b ) : Duty to Maintain Maximum Accuracy : The Department failed to ensure that the information shared with credit agencies was accurate and complete.

3. 1681i ( a ) ( 5 ) ( B ) : Re-insertion of Deleted Data : Any improper re-reporting of previously deleted or disputed information further violates this provision.

6. 15 U.S.C. 1692 ( Fair Debt Collection Practices Act - FDCPA ) If the third-party recipients of my information included debt collectors, the following violations apply : 1692c ( b ) : Prohibits communication with third parties about a consumers debt without prior consent.

1692e : Prohibits false, deceptive, or misleading representations, including the sharing of unverified or inaccurate information.

Impact of Widespread Dissemination The Department of Educations unauthorized disclosure of my personal information to all major credit reporting agencies has caused significant harm, including : 1.Credit Damage : The improper sharing of my personal data and subsequent reporting of inaccuracies resulted in long-term damage to my credit score and creditworthiness, affecting my ability to obtain loans, credit cards, and other financial services for years.

2.Financial Instability : I faced repeated denials of credit due to the unauthorized and inaccurate reporting of my personal information.

3.Emotional Distress : The ongoing struggle to dispute inaccuracies and recover from the harm caused by these disclosures has led to severe anxiety, sleeplessness, and mental anguish.

GAAP Principles and Their Application The Department of Educations actions also fail to align with GAAP ( Generally Accepted Accounting Principles ), specifically : 1.Reliability : The Department failed to ensure the reliability of the data shared with third parties, compromising the integrity of my credit and financial records.

2.Verifiability : Information shared with credit agencies was not sufficiently verified or backed by appropriate evidence, leading to inaccuracies and harm.

3.Transparency : The lack of proper disclosure or notification processes regarding the sharing of my data violated the principle of transparency.

Damages Claimed 1.Financial Harm : Time, resources, and expenses incurred in disputing unauthorized disclosures and addressing inaccurate credit reporting.

2.Emotional Distress : Anxiety, mental anguish, and stress caused by the violation of my privacy and the resulting financial difficulties.

3.Statutory Damages : Under the Privacy Act, FERPA, FCRA, and FDCPA, I am entitled to statutory damages for willful and negligent noncompliance.

Company response to consumer: Untimely response