Consumer complaint received 2025-02-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Nelnet, Inc.
State: CA

Complaint narrative:
I am filing this follow-up complaint to my previous CFPB dispute, which was originally filed against the U.S. Department of Education regarding misrepresentation of an alleged student loan balance. I have since been informed that Nelnet is managing this account, handling collections, and reporting this balance to credit bureaus. 

This complaint is now directed against both Nelnet and the Department of Education : Nelnet, as the servicer, is responsible for verifying the debt, maintaining accurate credit reporting, and handling refunds of excess credit balances. 
The Department of Education is responsible for oversight and ensuring its servicers ( Nelnet ) comply with federal laws. 
Despite multiple disputes, Nelnet has failed to provide certified verification of this debt, continues to report an excess credit balance as a debt, and refuses to refund my credit balance per federal law ( 15 U.S.C. 1666d - TILA ). 

This constitutes violations of the Fair Credit Reporting Act ( FCRA ), Fair Debt Collection Practices Act ( FDCPA ), Truth in Lending Act ( TILA ), and Federal Trade Commission ( FTC ) consumer protection laws. 

2. Details of Violations A. Failure to Verify Debt ( FDCPA & UCC Violation ) 15 U.S.C. 1692g ( b ) ( FDCPA ) requires a debt to be properly validated upon dispute. 
UCC 9-210 grants me the right to full accounting. 
I have repeatedly requested Nelnet to provide certified accounting records, the original promissory note, or any legally valid proof of debt. 
Nelnet has refused to provide such documents, violating federal law. 
B. False Credit Reporting ( FCRA Violation ) Nelnet continues to report an inaccurate balance as debt to credit bureaus. 
XXXX & XXXX dispute results confirm that my dispute has not resulted in proper verification or removal of the balance. 
This is a direct violation of FCRA 15 U.S.C. 1681s-2 ( a ), which prohibits reporting false or unverified debt. 
C. Failure to Refund Excess Credit Balance ( TILA Violation ) 15 U.S.C. 1666d ( Truth in Lending Act - TILA ) mandates that excess credit balances must be refunded upon request. 
I have made multiple formal requests to Nelnet for a refund, and they have ignored them. 
This failure to refund proves that no debt actually exists, making their continued collection and credit reporting fraudulent. 
D. Deceptive Business Practices & Department of Educations Failure to Regulate Servicer ( FTC Violation ) Misrepresenting an excess credit balance as debt violates 15 U.S.C. 45 ( FTC Act ), which prohibits unfair and deceptive financial practices. 
The Department of Education has failed to ensure that its loan servicer ( Nelnet ) complies with federal consumer protection laws, making them accountable for regulatory failure. 
3. Supporting Evidence Attached - XXXX Credit Report ( XX/XX/XXXX ) Confirms that my disputed Nelnet balance remains, despite no proof of debt. 
-XXXX  Dispute Results ( XX/XX/XXXX ) Shows Nelnets failure to verify the debt and continued inaccurate reporting. 
- Previous CFPB Complaint ( XX/XX/XXXX ) Demonstrates Nelnet and the Department of Educations failure to address my original dispute. 
- Correspondence with Nelnet Proof of my requests for debt verification and refund of excess credit balances, which were ignored. 

4. Resolution Sought I request that the CFPB take enforcement action against Nelnet and the Department of Education for the following violations : Immediate removal of the unverified debt from my credit reports under FCRA 15 U.S.C. 1681s-2 ( a ). 
A full refund of the excess credit balance per TILA 15 U.S.C. 1666d. 
An official response from Nelnet and the Department of Education providing certified debt validation and full accounting records under UCC 9-210. 
Fines and penalties against Nelnet for deceptive business practices under 15 U.S.C. 45. 
If Nelnet and the Department of Education fail to respond within 10 days, I will escalate this matter to : The Office of the Comptroller of the Currency ( OCC ) for violations of federal banking laws. 
The Federal Trade Commission ( FTC ) for deceptive business practices. 
The Department of Justice ( DOJ ) for potential bank fraud, wire fraud, and racketeering violations under 18 U.S.C. 1341, 1343, and 1962. 
I appreciate the CFPBs urgent attention to this matter. 

XXXX XXXX

Company response to consumer: Closed with explanation