Consumer complaint received 2025-02-10 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Nelnet, Inc.
State: PA

Complaint narrative:
Summary of Complaint : XXXX XXXX XXXX XXXX XXXX XXXX I am filing a formal complaint against Nelnet , Inc. and its division, Firstmark Services, for engaging in a systemic scheme of fraudulent debt collection, credit reporting violations, and deceptive lending practices. This scheme is in direct violation of federal and state consumer protection laws, as well as a recent Supreme Court ruling that mandates loan trusts comply with consumer financial protection regulations. 

Nelnet XXXX XXXX knowingly collected on fraudulent loans issued by defunct, predatory for-profit institutions including but not limited to : XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Corinthian Colleges Defunct XXXX Despite federal and state regulatory actions canceling fraudulent loans from these institutions, Nelnet & XXXX have deliberately : Continued collecting on fraudulent, unenforceable debts Falsely reported these debts to credit bureaus, damaging borrower credit Denied relief despite CFPB, AG, and court rulings protecting borrowers Used securitization loopholes to obscure loan ownership and accountability This is a clear-cut case of willful fraud, deceptive collection practices, and systemic violations of consumer protection laws. 

XXXX Federal Laws Violated by Nelnet & XXXX XXXX XXXX XXXX XXXX ( 12 U.S.C. 5536 ( a ) ( 1 ) ) Unfair, deceptive, and abusive acts and practices ( UDAAP ) Nelnet knowingly misrepresented the legality of debts and enforced fraudulent loans.

Knowingly collecting on fraudulent loans despite federal orders canceling them.

Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681s-2 ( a ) ) Illegally reporting fraudulent debts as valid despite evidence to the contrary. 
Failing to investigate and correct disputed credit entries in violation of FCRA. 

Racketeer Influenced and Corrupt Organizations Act ( RICO ) ( 18 U.S.C. 1962 ( c ) ) Engaging in systemic, organized fraud to collect money on loans that should have been legally discharged. 
Coercing borrowers into payments under false pretenses, knowing the underlying debt is unenforceable. 

Federal Trade Commission ( FTC ) Holder Rule ( 16 C.F.R. 433.2 ) XXXX XXXX offloaded fraudulent loans to XXXX after XXXX collapsed XXXX violating the Holder Rule. 
Nelnet knowingly enforces these debts despite lenders losing legal standing. 

Truth in Lending Act ( TILA ) ( 15 U.S.C. 16011667f ) Failing to disclose material facts about the enforceability of these loans. 
Denying borrowers the ability to challenge fraudulent lending terms. 

XXXX Pennsylvania State Laws Violated Pennsylvania Fair Credit Extension Uniformity Act ( 73 P.S. 2270.12270.6 ) Using deceptive practices to collect debts deemed unenforceable. 
Failing to provide accurate disclosures regarding borrower rights. 

Pennsylvania Unfair Trade Practices and Consumer Protection Law ( 73 P.S. 201-1 201-9.3 ) Misleading borrowers into paying unenforceable loans. 
Obscuring loan ownership through securitization to evade accountability. 

3 Key Evidence of Nelnet XXXX XXXX XXXX XXXX Nelnet XXXX XXXX knowingly continue collections despite the XXXX XXXX decision affirming that student loan trusts must comply with consumer protection laws. 
XXXX refusal to implement fraud-based discharges, while competitors XXXX & XXXX have established borrower relief processes. 
Falsified credit XXXX  reported borrowers XXXX days late without notice or proper validation. 
XXXX XXXX offloading of fraudulent loans to Nelnet in XXXX XXXX - XXXX XXXX, despite multiple federal sanctions. 
XXXX XXXX XXXX correct accounts after multiple disputesindicating a deliberate policy of borrower abuse. 

XXXX DEMAND FOR CFPB ENFORCEMENT ACTION Given the overwhelming evidence that Nelnet XXXX XXXX have engaged in willful fraud, I demand the Consumer Financial Protection Bureau take the following immediate actions : Full suspension of Nelnets ability to service private loans. 
Mandatory restitution to affected borrowers. 
Immediate removal of fraudulent credit reporting data. 
Criminal referrals for executive leadership involved in systemic deception. 
A full-scale investigation into Nelnets securitization practices and trust management. 

XXXX Call to Action : Consumers Must Take Immediate Steps Flood Congress with complaints Call your representatives & demand action against Nelnet/XXXX XXXX 
File a CFPB complaint Every affected borrower must file disputes directly with the CFPB. 
Expose their fraudulent practices publicly Use social media, news outlets, and legal networks. 
Join a class-action lawsuit A legal challenge must be organized to hold Nelnet accountable XXXX 

This is not just a financial disputeit is a fight for consumer rights. If unchecked, Nelnet will continue to exploit borrowers nationwide. 

ENOUGH IS ENOUGH. 

Final Disclaimer for Consumers : DO NOT RELY ON REGULATORS ALONE. File your own disputes. 
FIGHT BACK. Expose Nelnet, XXXX, and all complicit entities. 
JOIN XXXX  LEGAL ACTION. 

This is organized financial crime against borrowers. Nelnet is the XXXX XXXX XXXX XXXX XXXX XXXX.

Company response to consumer: Closed with explanation