Consumer complaint received 2024-12-25 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Need information about your loan balance or loan terms
Company: Nelnet, Inc.
State: PA

Complaint narrative:
Consumer Financial Protection Bureau ( CFPB ) Complaint Against Nelnet ( Firstmark Services ) and XXXX XXXX XXXX, XXXX. 
Complainant : XXXX XXXX Loan Details : Private Student Loan, Originated by XXXX ( XXXX ), Transferred to XXXX XXXX, Currently Serviced by Firstmark Services ( a Nelnet subsidiary ) Institutions Involved : Nelnet , Inc. ( Parent Company of Firstmark Services ) Firstmark Services XXXX XXXX XXXX, XXXX. 
Date of Complaint : [ Insert Date ] 1. Overview of Complaint This complaint addresses systemic violations, fraud, and misconduct in connection with the servicing and ownership of a XXXX private student loan initially originated by XXXX, acquired by XXXX XXXX, and currently serviced by Firstmark Services ( a Nelnet subsidiary ). 

Both XXXX XXXX and Nelnet/Firstmark Services have repeatedly failed to comply with federal laws governing loan servicing, debt validation, and electronic signature compliance under the ESIGN Act, Truth in Lending Act ( TILA ), and the Fair Debt Collection Practices Act ( FDCPA ). 

Despite previous formal complaints to the CFPB, both institutions have continued deceptive and fraudulent practices. This complaint demands escalated oversight, enforcement action, and immediate investigation into the ownership, servicing, and documentation of this loan. 

2. Key Allegations Against XXXX XXXX XXXX, XXXX. 
A. Failure to Produce Valid Promissory Note and Compliance with ESIGN Act Conversations with XXXX XXXX, Escalation Manager at XXXX XXXX, revealed that XXXX XXXX may not possess proper documentation of the original promissory note or evidence demonstrating compliance with ESIGN Act ( 15 U.S.C. 7001 et seq. ) requirements. 
ESIGN mandates : Explicit consumer consent to use electronic records. 
Retention of a valid electronic audit trail ( timestamps, IP addresses, and consent confirmation ). 
XXXX XXXX has failed to provide clear documentation demonstrating valid consent or retention of the original promissory note. 
B. Violation of Truth in Lending Act ( TILA, 15 U.S.C. 1601 et seq. ) XXXX XXXX failed to provide clear, accurate, and conspicuous disclosures at the origination of the loan, including : Accurate Annual Percentage Rate ( APR ). 
Total repayment cost. 
Explicit terms and conditions of the loan agreement. 
These violations impede the borrowers ability to make informed financial decisions and render the contract potentially unenforceable. 
C. Ongoing Violation of CFPB Court Orders XXXX XXXX is currently under CFPB-mandated court orders for widespread mismanagement across various financial products, including student loans. 
Despite these mandates, XXXX XXXX has failed to implement adequate oversight, internal compliance protocols, or corrective measures for legacy private student loan portfolios. 
3. Key Allegations Against Nelnet , Inc. and Firstmark Services A. Fraudulent and Predatory Servicing Practices Firstmark Services ( Nelnet Subsidiary ) continues to engage in predatory and coercive collection tactics despite documented evidence of loan irregularities. 
These include : Refusal to provide validation of debt upon formal request. 
Obscuring chain-of-title documentation ( XXXX XXXX XXXX Firstmark Services ) . 
Evasive, inconsistent responses to formal inquiries and disputes. 
B. ESIGN Act Compliance Failures Firstmark Services has failed to provide verifiable audit trails or documentation proving compliance with ESIGN requirements, including : Timestamp logs. 
IP address records. 
Explicit evidence of consent to electronic records. 
The loan documents currently state Electronic Signature on File, but supporting records validating this are conspicuously absent. 
C. Violation of UDAAP ( Unfair, Deceptive, and Abusive Acts and Practices, 12 U.S.C. 5531 ) Firstmark has misrepresented its authority to collect on this debt without adequate documentation. 
It has failed to provide transparency regarding loan ownership and servicing authority. 
These acts violate UDAAP principles as outlined in the Consumer Financial Protection Act ( CFPA ). 
D. Systemic Transfer and Servicing Errors During the transition from XXXX XXXX XXXX Firstmark Services, critical documentation appears to have been lost, destroyed, or deliberately withheld. 
Errors include : Misapplication of payments. 
Inconsistent reporting to credit bureaus. 
Lack of clear debt ownership validation. 
E. Failure to Address Prior Complaints Multiple formal complaints were filed with XXXX XXXX , including requests for documentation validation and compliance records. 
Nelnet acknowledged the existence of fraudulent activity but failed to take corrective action. 
F. CFPB Findings Against Nelnet ( XX/XX/XXXX Report ) The XX/XX/XXXX CFPB Supervisory Highlights Report documented systemic failures in Nelnet 's servicing practices, including : Deceptive billing statements. 
Mismanagement of documentation during loan transfers. 
Improper denial of repayment plan applications. 
Lack of adequate call center staffing, leading to unresolved borrower concerns. 
These findings align directly with the issues raised in this complaint. 
4. Legal and Regulatory Violations Electronic Signatures in Global and National Commerce Act ( ESIGN Act, 15 U.S.C. 7001 et seq. ) Failure to provide audit trails and electronic consent validation. 
Truth in Lending Act ( TILA, 15 U.S.C. 1601 et seq. ) Failure to provide accurate disclosures during origination. 
Unfair, Deceptive, and Abusive Acts and Practices ( UDAAP, 12 U.S.C. 5531 ) Ongoing deceptive servicing practices. 
Consumer Financial Protection Act ( CFPA, 12 U.S.C. 5481 et seq. ) Violations of federal consumer protection laws. 
Fair Debt Collection Practices Act ( FDCPA, 15 U.S.C. 1692 et seq. ) Failure to validate debt when formally requested. 
5. Relief Sought from the CFPB Immediate Investigation : Comprehensive investigation into XXXX XXXX and Nelnet/Firstmarks loan documentation and servicing compliance. 
Debt Validation : Mandatory production of original promissory notes, audit logs, and ESIGN consent records. 
Corrective Action : Enforcement orders to prevent continued deceptive practices. 
Penalties and Fines : Civil penalties against both institutions for repeated violations of federal laws. 
Borrower Relief : Suspension of adverse collection actions and credit reporting until compliance is achieved. 
6. Final Remarks This complaint highlights systemic fraud, predatory lending, and servicing failures spanning multiple institutions. Both XXXX XXXX and Nelnet/Firstmark Services have demonstrated blatant disregard for regulatory requirements, borrower rights, and CFPB mandates. 

This matter must be escalated to the highest levels of oversight within the CFPB, with appropriate enforcement actions, fines, and legal measures pursued to ensure accountability. 

XXXX XXXX, as it seems customary for these institutions to send delinquency notices during the holiday season while failing to meet their most basic legal obligations. 

Sincerely, XXXX XXXX XXXX, XXXX XXXX XXXX

Company response to consumer: Closed with explanation