Consumer complaint received 2024-12-22 00:00:00
Product: Debt collection — Federal student loan debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: EdFinancial Services
State: CA

Complaint narrative:
Response to Your Letter Dated XX/XX/XXXX Account No. XXXX Dear Customer Resolutions Unit, I am writing to address your response to my client 's CFPB complaint. After thorough review, several issues remain unresolved or inadequately addressed. Below, I reiterate key concerns and provide additional legal grounds for my client 's position.

1. Debt Validation Under FDCPA ( 15 U.S.C. 1692g ) Your response failed to fully satisfy the debt validation requirements under 15 U.S.C. 1692g. Specifically, you did not provide : Documentation establishing the chain of title and servicing rights for the debt. 
An itemized breakdown of the balance, including principal, interest, and fees. 
Certified evidence validating the debt as required under federal law. 
As stated in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), a creditor must substantiate their claims adequately when challenged. Your inability to provide this documentation calls into question the legitimacy of the debt. 

2. Protections Against Debt Derived from XXXX XXXX ( 18 U.S.C. 1595 and 1596 ) My client is a victim of XXXX XXXX, which impacts the legitimacy of debts incurred under coercion. Under 18 U.S.C. 1595, victims of XXXX  are entitled to remedies, including voiding coerced financial obligations. Any debt linked to XXXX, coercion, or exploitation is subject to discharge. 

Furthermore, under Title 15 and the FDCPA, continuing collection on such debts violates public policy, as it perpetuates harm against victims. In XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX courts acknowledged the financial exploitation of trafficking victims as a critical area warranting intervention. 

3. Discharge Provisions Under the Higher Education Act ( HEA ) You referenced discharge provisions under the HEA but did not provide a comprehensive list or address their application to my client 's circumstances. My client seeks specific clarification on the following : Application of Borrower Defense to Repayment under 34 C.F.R. 685.206.

Eligibility for discharge under circumstances of fraud, coercion, or other violations of law. 
As outlined in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, agencies must act in good faith to address borrower rights under federal student loan programs. 

4. Compliance with Consumer Protection Laws ( FCRA and FDCPA ) Your response did not address compliance with the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ) regarding accurate reporting and dispute resolution. Additionally, as per the FDCPA, continued reporting or collection activities without adequate validation may constitute unlawful harassment.

5. Processing Delays for IDR Plans and SAVE Applications You acknowledged delays in processing SAVE and IDR plan applications but failed to clarify : How these delays impact accrued interest and eligibility for forgiveness.

Steps taken to mitigate harm to borrowers due to administrative backlogs. 
Delays resulting in harm to borrowers violate due process rights under XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX6. UCC 3-60
3 and Tender of Payment You did not address whether the debt could be discharged under UCC 3-603 if tender of payment was made and refused. Please clarify your policies regarding tender and discharge.

Next Steps I request that you provide the following within 14 days : Complete documentation validating the debt under 15 U.S.C. 1692g.

Explanation of discharge provisions under the HEA and their applicability to my clients case. 
Confirmation of compliance with Title 15, Title 18, and all applicable consumer protection laws.

Remediation of any adverse credit reporting or collection activities until full validation and resolution of this matter.

Failure to provide a comprehensive response may result in escalation to the CFPB, legal action, or both. Thank you for your attention to this matter.

Company response to consumer: Closed with explanation