Consumer complaint received 2025-04-21 00:00:00
Product: Student loan — Private student loan
Issue: Getting a loan — Denied loan
Company: College Ave Student Loan Servicing, LLC
State: NC

Complaint narrative:
Complaint to the Consumer Financial Protection Bureau ( CFPB ) Subject : FCRA Compliance Violations Identity Verification Dispute & Improper Loan Denial by College Ave Student Loans Company : College Ave Student Loans Loan Applications Affected : # XXXX and # XXXX Date of Adverse Action : XX/XX/XXXX Summary of Complaint : I am submitting this complaint because College Ave Student Loans denied XXXX of my student loan applications ( # XXXX and # XXXX ) on the basis of unverifiable identity, allegedly determined by their third-party verification vendor, XXXX. The denial letter referenced suspicious activity but did not provide any process to verify or correct the information, nor a method to appeal the decision. 

Despite multiple attempts to obtain clarification and submit verification documents ( e.g., ID, SSN card, proof of address ), I was not provided a legally required opportunity to dispute or verify the information as required by the Fair Credit Reporting Act ( FCRA ) and 12 CFR 1022 ( Regulation V ).

Violations and Legal Issues Involved : 1. Failure to Provide Clear Adverse Action Disclosure ( FCRA 1681m ( a ) ) : College Ave acknowledged they used information from XXXX to make an adverse decision. However, I was not provided a clear disclosure of the specific identity information or findings that led to the denial. Furthermore, no steps were offered to dispute or correct the information. This violates FCRA 1681m ( a ).

2. Improper Use of Third-Party Data Without Accountability : College Ave claims that XXXX is not a consumer reporting agency and that the data used is proprietary and therefore can not be disclosed. This does not exempt them from their obligation under FCRA to inform me of the factual basis of the adverse action, especially when such data is used to deny credit.

3. No Access or Dispute Rights Provided ( FCRA 1681g, 1681i; 12 CFR 1022.43 ) : I requested to verify my identity by submitting government-issued ID and proof of residence. I was never given a secure, compliant method to do so. I was also not told how to dispute the information used against me. This violates my rights under : FCRA 1681g access to consumer information ; FCRA 1681i right to dispute inaccurate or unverifiable information ; Regulation V 1022.43 identity theft and fraud resolution procedures.

4. Misuse of Prior " Identity Theft '' Classification Without Basis : College Ave stated my XX/XX/XXXX application was denied due to a prior identity theft incident from XX/XX/XXXX. I never filed a fraud report in XXXX. I did make contact at that time to opt out of receiving College Ave marketing, after choosing another lender. I believe this lawful communication was misclassified as " fraud '' and is now being used to justify my loan denialwithout evidence or a process to contest it. This likely constitutes negligent or willful misrepresentation under FCRA 1681n or 1681o.

Requested Resolution : Require College Ave to provide me with a written summary of the specific information used to deny my l
oan, in compliance with FCRA 1681m ( a ) ; Require College Ave to provide a secure and legally compliant process for me to verify my identity ( e.g., submission of ID, SSN, proof of address ) ; Require College Ave to correct the misclassification of my prior contact as an identity theft report ; Compel College Ave to reevaluate my XX/XX/XXXX applications in light of this correction and provide an opportunity to resubmit. 

Harm Caused : Due to these violations, I have been unfairly denied educational financing, causing me financial and emotional distress and forcing delays in my academic planning. 

Reference responses to CFPB for CFPB complaint numbers : XXXX XXXX

Company response to consumer: Closed with explanation