Consumer complaint received 2025-03-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Maximus Federal Services, Inc.
State: DC

Complaint narrative:
Rebuttal to Aidvantages Misclassification and Failure to Address CFPB Complaint ID XXXX From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Washington, DC XXXX Account Number : XXXX To : Aidvantage Dispute Resolution Department XXXX XXXX XXXX XXXX, TX XXXX XXXX : XXXX, CFPB, FTC Subject : Formal Response to Aidvantage Misclassification of My Student Loan & Failure to Address CFPB Complaint ID XXXX To Aidvantage Dispute Resolution Department, This letter serves as a formal rebuttal and legal demand in response to Aidvantages XX/XX/XXXX, at XXXX XXXX  EST response to CFPB Complaint ID XXXX. Aidvantages response is legally insufficient, factually inaccurate, and in noncompliance with federal and D.C. consumer protection laws. 
Rather than addressing the core issuethe wrongful classification of my student loan account as associated with an identity theft or forgery dispute, despite the fact that I never initiated or authorized such a disputeAidvantage engaged in misdirection, false statements, and procedural misrepresentations. 
Aidvantage deflected responsibility by referencing an unrelated CFPB complaint against XXXX, made false claims regarding attempted contact, and unlawfully shifted the burden onto me to correct its own mistake. 
Attached to this notice is my sworn and notarized Affidavit of Truth ( AOT ), which serves as a master legal record supporting my disputes, along with my FTC Fraud Report, which confirms that I never submitted an identity theft or forgery dispute related to my student loan account. These documents are attached as evidence of Aidvantages failure to comply with FCRA, CFPA, and D.C. CPPA requirements. Aidvantage is legally required to take immediate corrective action and can not shift the responsibility onto me to fix their own error.

I. Setting the Record Straight : Aidvantage 's False Narrative and Failure to Investigate Aidvantages response to CFPB Complaint ID XXXX is not only factually inaccurate but also fails to address the actual complaint I filed against them. Instead of responding to my direct allegations of wrongful misclassification, failure to disclose evidence, and failure to conduct a proper investigation, Aidvantage deliberately misdirected the conversation by referencing an unrelated complaint against XXXX. 
1. Aidvantage wrongly cites CFPB Complaint ID XXXX, which was a complaint filed against XXXX on XX/XX/XXXX, XXXXnot against Aidvantage. 
o This complaint included no claim of identity theft and had nothing to do with Aidvantages internal handling of disputes. 
o The intent of CFPB Complaint ID XXXX was solely to require XXXX to correct or remove inaccurate account details on my Aidvantage accounts. 
o Instead of addressing the actual complaint against Aidvantage ( CFPB Complaint ID XXXX ), Aidvantage deliberately misdirected its response. 
2. Aidvantage failed to respond to CFPB Complaint ID XXXX, which explicitly denied any claim of identity theft or forgery on my student loan. 
o The sole purpose of my complaint was to hold Aidvantage accountable for wrongfully classifying my account under identity theft procedures without any basis or authorization. 
o Aidvantage ignored my demand for proof of who initiated this false claim, failed to disclose supporting documentation, and instead provided an irrelevant response. 
3. Aidvantage falsely claims they attempted to contact me before classifying my account as fraud-related, yet they have provided no evidence of such outreach.

o Aidvantage has provided no evidence of any outreach, such as call logs, emails, letters, or records. 
o If Aidvantage can not produce verifiable proof that I was contacted or that I submitted an identity theft dispute, then their actions constitute a violation of multiple federal and D.C. consumer protection laws.

4. Aidvantage improperly shifts the burden onto me to correct their own error instead of taking responsibility for their mistake.

o Aidvantage states : " If you are not disputing the student loans, you can write a letter to Aidvantage, XXXX XXXX XXXX, XXXX, TX XXXX to remove the fraud claim narrative from your account. '' o This statement is both legally and procedurally improper. Under the Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ), furnishers such as Aidvantage are required to ensure the accuracy of the information they report and must correct errors without placing the burden on the consumer. 
o It is not my responsibility to request that a fraud claim be removed when I never initiated or authorized one in the first place. Aidvantages response implies that I must take additional steps to fix their wrongful designation, which is a clear violation of my consumer rights.

5. Aidvantages response creates an undue burden and potential harm to me as a consumer.

o Having my account falsely labeled as part of an identity theft claim can result in increased scrutiny, restrictions, or unnecessary verification requirements that could impact my ability to access student loan services. 
o If this misclassification has been reported to any credit bureaus, it may have adverse effects on my credit profile, requiring even further dispute processes to undo Aidvantages mistake.

o Aidvantages failure to take proactive corrective action violates Consumer Financial Protection Act ( CFPA ) 12 U.S.C. 5536 ( a ) ( 1 ) ( B ), which prohibits unfair and deceptive practices that obstruct consumers from resolving disputes efficiently.

By shifting the responsibility onto me to correct their own mistake rather than taking immediate corrective action, Aidvantage is failing in its legal obligations and worsening the harm caused by their misclassification. Their failure to provide proof of any valid basis for the fraud claim and their refusal to remove it without additional consumer intervention creates significant regulatory, legal, and consumer protection concerns. 
II. Legal Violations Committed by Aidvantage A. Fair Credit Reporting Act ( FCRA ) Violations 1. Failure to Conduct a Reasonable Investigation 15 U.S.C. 1681s-2 ( b ) ( 1 ) ( A ) o Aidvantage was required to conduct a reasonable investigation upon receiving a dispute regarding my account.

o Instead, they wrongfully labeled my account as fraud-related without verifying whether a fraud claim had actually been submitted by me. 
2. Providing False or Inaccurate Information to a Credit Bureau 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) o Furnishers must not knowingly provide false or inaccurate information to a credit reporting agency.

o Aidvantage reported my account as being subject to an identity theft dispute without evidence, misrepresenting my consumer record. 
3. Failure to Provide Supporting Documentation 15 U.S.C. 1681i ( a ) ( 6 ) o I formally requested that Aidvantage provide : The source of the identity theft claim The authorization of the claim Correspondence records or communication logs related to this claim o Aidvantage has failed to produce any of these documents, violating their obligation under the FCRA.

B. Consumer Financial Protection Act ( CFPA ) Unfair, Deceptive, and Abusive Acts or Practices ( UDAAP ) ( 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) ) 1. Unfair Business Practice Shifting the Burden to the Consumer o Aidvantage is placing an undue burden on me to correct their own mistake, rather than taking proactive steps to fix the inaccurate fraud classification that they wrongly applied to my account. 
o Under 12 U.S.C. 5531 ( c ) ( 1 ), a business practice is unfair if it causes substantial harm to consumers, is not reasonably avoidable, and lacks countervailing benefits.

o In this case, Aidvantages failure to properly verify identity theft claims before applying a fraud designation directly harms me by : Complicating my ability to manage my student loan account Forcing me to submit unnecessary paperwork to correct an error I did not cause Potentially triggering unnecessary restrictions, delays, or adverse credit consequences o Consumers should not be required to file additional disputes to remove inaccurate designations that the furnisher wrongly placed on their account.

o Under FCRA 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ), Aidvantage is legally required to maintain and furnish accurate information. Their failure to remove an incorrect fraud claim unless I take additional steps violates both the FCRA and CFPAs prohibition on unfair practices. 
2. Deceptive Representation of a Consumer Complaint o Aidvantage misrepresented the nature of its actions and misled me and federal regulators by : Claiming they acted based on my XXXX dispute when no fraud claim was filed in that dispute. 
Claiming they attempted to contact me before classifying my account as fraud-relatedyet providing no proof of such outreach. 
o 12 U.S.C. 5531 ( a ) prohibits deceptive acts or practices, which occur when a company : Provides misleading or false information XXXX necessary disclosures that affect consumer decisions Fails to correct known inaccuracies o Here, Aidvantages misrepresentation of my dispute and failure to correct an error it caused constitute clear violations of 12 U.S.C. 5536 ( a ) ( 1 ) ( B ). 
C. Washington, D.C. Consumer Protection Procedures Act ( CPPA ) Violations 1. Material Misrepresentation of a Consumer Transaction XXXX XXXX XXXX ( e ) o Aidvantage falsely represented that they handled my CFPB complaint appropriately, when in reality, they failed to address the actual dispute ( ID XXXX ) and instead deflected to an unrelated complaint against XXXX. 
o Mischaracterizing my dispute as an identity theft claim constitutes a deceptive trade practice under D.C. CPPA 28-3904 ( XXXX ), which prohibits businesses from misrepresenting a material fact that would affect a consumers decision-making process. 
o Additionally, under FCRA 15 U.S.C. 1681i ( a ) ( 6 ), furnishers must provide clear, accurate explanations regarding disputes. By evading the core issues of my complaint, Aidvantage engaged in deceptive and misleading conduct.

2. Failure to Perform a Legal Duty D.C. CPPA 28-3904 ( f ) o Aidvantage had a legal obligation to verify dispute details before misclassifying my account. Their failure to ensure the fraud classification was justified means they violated their duty to furnish only accurate and complete information.

o Under FCRA 1681e ( b ), furnishers must use reasonable procedures to ensure maximum possible accuracy.

o Under FCRA 1681i ( a ) ( 1 ), furnishers must investigate and correct errors upon notice of a dispute.

o Aidvantages refusal to remove the false fraud designation without requiring me to take additional steps is an outright failure to meet these obligations.

o Their failure to provide proof of their actions, verify the legitimacy of the fraud claim, or disclose the source of the misclassification violates D.C. CPPA 28-3904 ( f ), which prohibits businesses from failing to perform a duty required by law.

Legal Summary of Violations by Aidvantage Federal Violations FCRA 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) : Furnishers must not report inaccurate information.

FCRA 15 U.S.C. 1681i ( a ) ( 6 ) : Furnishers must provide dispute-related documents upon request.

FCRA 15 U.S.C. 1681e ( b ) : Furnishers must ensure maximum possible accuracy.

CFPA 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) : Unfair, deceptive, and abusive practices ( UDAAP ).

Washington, D.C. Violations D.C. CPPA 28-3904 ( e ) : Misrepresentation of a material fact in consumer transactions.

D.C. CPPA 28-3904 ( f ) : Failure to perform a legal duty required by law.

Aidvantages response not only fails to comply with federal and D.C. laws but also actively harms me as a consumer. Their attempt to shift the burden onto me rather than correcting their own error demonstrates a pattern of deceptive business practices that require regulatory intervention. 
III. Legal Demands for Immediate Corrective Actions To prevent regulatory escalation and legal exposure, I formally demand that Aidvantage comply with the following within 30 business days : 1. Immediate Removal of the Fraud Designation on My Account o Aidvantage must confirm in writing that they have removed all fraud-related designations on my student loan records.

2. Provide Written Confirmation That No Adverse Credit Reporting Resulted o If any negative impact to my credit report resulted from this false fraud claim, Aidvantage must submit immediate corrections to XXXX. 
3. Disclose the Full Investigation Record & Internal Documentation o Aidvantage must provide : The name of the individual or entity that initiated the fraud designation.

Any internal notes, emails, or communications related to this designation. 
Any correspondence between Aidvantage and XXXX related to this matter. 
4. Provide a Formal Explanation as to Why CFPB Complaint ID XXXX Was Ignored o Aidvantage must issue a response directly addressing the claims in CFPB Complaint ID XXXX, not an unrelated dispute. 
IV. Notice of Regulatory and Legal Action if Aidvantage Fails to Comply If Aidvantage fails to take immediate corrective actions, I will escalate the matter as follows : 1. File a New CFPB Complaint for UDAAP Violations o I will submit a new complaint detailing : Aidvantages misclassification of my student loan Their failure to investigate the dispute properly Their deceptive misrepresentation of my complaint 2. Report Aidvantage to the Washington, D.C. Attorney General for CPPA Violations o Aidvantages deceptive and unfair trade practices violate D.C. CPPA 28-3904 ( e ) & ( f ). 
3. Initiate Legal Action for FCRA and CFPA Violations o Aidvantage is now on formal notice that I reserve the right to pursue legal action under : 15 U.S.C. 1681n ( FCRA Willful Noncompliance ) 15 U.S.C. 1681o ( FCRA Negligent Noncompliance ) 12 U.S.C. 5536 ( a ) ( CFPA UDAAP Violations ) D.C. CPPA 28-3904 ( e ) - ( f ) ( Deceptive & Unfair Practices ) Aidvantage has 30 business days to correct this error and provide a formal response. If they fail to comply, I will escalate to regulatory agencies and explore litigation options.

V. Attached as Evidence The following documents are attached as supporting evidence of Aidvantages fraudulent misclassification, failure to conduct a proper investigation, and noncompliance with federal and D.C. consumer protection laws : Sworn and Notarized Affidavit of Truth ( AOT ) : A master legal record establishing the foundation for my disputes and outlining systemic issues with Aidvantages handling of my account.

CFPB Complaint ID XXXX : A complaint filed against XXXX on XX/XX/XXXX, which Aidvantage improperly cited in its response, despite having no connection to the identity theft misclassification on my student loan account. 
CFPB Complaint ID XXXX : The complaint specifically filed against Aidvantage regarding its fraudulent identity theft classification, to which Aidvantage responded XXXX XX/XX/XXXX, at XXXX XXXX  EST with an inadequate and misleading response. 
FTC Fraud Report ID XXXX : A report filed with the Federal Trade Commission detailing Aidvantages misrepresentation, improper burden-shifting, and failure to comply with consumer protection laws. 
These documents serve as critical evidence of Aidvantages misconduct and establish the need for regulatory intervention.

VI. Final Notice to Aidvantage Aidvantages mischaracterization of my dispute ( CFPB Complaint ID XXXX ) and failure to provide evidence demonstrates a clear violation of federal and state consumer protection laws. 
This is Aidvantages final opportunity to correct its misconduct before regulatory escalation. 
Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation