Consumer complaint received 2025-07-02 00:00:00
Product: Debt collection — Federal student loan debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: ECMC GROUP, INC.
State: TN

Complaint narrative:
On XX/XX/XXXX, I submitted a formal dispute and debt validation request to Educational Credit Management Corporation ( ECMC ), invoking my rights under the Fair Debt Collection Practices Act ( FDCPA ), Fair Credit Reporting Act ( FCRA ), and federal financial privacy laws including the Gramm-Leach-Bliley Act ( GLBA ) and the Right to Financial Privacy Act ( RFPA ). 

Despite this, ECMC failed to provide sufficient documentation to verify the alleged debt. Under 15 U.S.C. 1692g ( b ), once a consumer disputes a debt in writing, the debt collector must cease all collection activity until it provides proper verification. Courts have made clear that this verification must consist of more than account summaries or billing notices. It requires : A complete chain of title, proving how the debt was lawfully transferred or assigned from the original creditor to the present entity ( ECMC ), Possession or control of the original signed promissory note ( or a proper legal substitute ), And evidence of standing to enforce the obligation under state law. 

Legal Precedents Supporting My Position : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  : Requires a debt collector to provide a full chain of title showing valid assignments. 

XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) : Affirms that a debt collector must prove it is the legal assignee of the debt and has the right to collect. 

XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : Debt collectors must follow the law precisely ; ignorance or misinterpretation is not a defense to violations. 

XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : Confirms that entities and attorneys engaged in debt collection are fully subject to the FDCPA. 

ECMCs failure to produce this evidencewhile continuing to pursue collection and possibly reporting the account to credit bureausmay constitute multiple violations : 15 U.S.C. 1692e false or misleading representations 15 U.S.C. 1692f unfair or unconscionable collection means 15 U.S.C. 1692g ( b ) failure to cease collection during dispute 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) furnishing inaccurate or unverified information to credit bureaus FCRA Violations Unlawful Reporting Without Validation ECMCs continued credit reporting, without first validating the debt and demonstrating a legal right to collect, may also violate the Fair Credit Reporting Act ( FCRA ) : 15 U.S.C. 1681n willful noncompliance 15 U.S.C. 1681o negligent failure to comply As held in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ), a furnisher of information to credit bureaus has a duty to investigate disputes reasonably, and may not merely parrot information passed from prior holders.

ECMC has failed to conduct such an investigation and continues to expose me to reputational and financial harm. 
Privacy Law Violations GLBA, FERPA, and Privacy Act ECMCs handling of my private financial records also raises serious federal privacy concerns : Under the Gramm-Leach-Bliley Act ( 15 U.S.C. 68016827 ) and Regulation P, ECMC must safeguard my non-public personal information ( NPI ) and must honor my reque
st to opt out of any sharing of my data with unaffiliated third parties.

ECMC is not a Title IV institution and can not rely on FERPA protections to justify unauthorized data sharing. Once a student loan enters servicing or collection, it becomes subject to financial privacy laws, not education privacy laws.

The Privacy Act of XXXX  ( 5 U.S.C. 552a ) similarly prohibits disclosure of personal records without clear statutory authority or written consent. 

In XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ), the Supreme Court held that individuals have an enforceable right to sue when agencies or private entities unlawfully share personal information. 

Despite clear statutory obligations, ECMC has failed to demonstrate how it protects my XXXX or the legal basis for sharing or reporting data related to this unresolved and disputed account.

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