Consumer complaint received 2025-05-24 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Central Research Inc
State: TX

Complaint narrative:
CFPB Complaint Against Central Research , Inc. ( Federal Student Loan Servicing ) Complainant : XXXX XXXX ( Federal Student Loan Borrower ) Company : Central Research , Inc. ( CRI ) Student Loan Servicer Issue : Improper reporting of 90-day late payments without required mailed notices Summary of the Issue I am filing a formal complaint against Central Research , Inc. ( CRI ) for reporting four of my federal student loan accounts as 90 days late to XXXX XXXX XXXX XXXX without providing the legally required written delinquency notices via mail. In early XXXX CRI furnished negative information ( 90-day delinquencies ) on my student loans to the credit bureaus, yet I never received any mailed notice warning me of these delinquencies or the impending negative credit reporting. This lack of notice denied me the opportunity to address the issue before severe damage was done to my credit. 



These unwarranted derogatory marks have severely harmed my credit score and financial standing, especially since I was never properly informed or given a chance to avoid them. CRIs actions appear to violate multiple federal consumer protection laws and U.S. Department of Education regulations, as detailed below. 



Failure to Provide Required Mailed Notices No Mailed Delinquency Warnings : I did not receive any letters or physical mail from CRI informing me that my loans were delinquent or at risk of being reported late. My current mailing address ( XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX, TX ) is on file with CRI, yet no delinquency notices were sent to that address before CRI reported the 90-day late payments. The first indication I had of any problem was discovering the late marks on my credit reports.

Monthly Billing Statements Are Not Delinquency Notices : CRI also asserts that it mailed my monthly billing statements during this period. Even if those statements were sent, a routine billing statement does not satisfy the federal requirements for specific delinquency notices. Billing statements are generic and do not contain the mandatory warnings or content that a delinquency notice must include under the law. Moreover, I did not receive any billing statements by mail either ; if they were sent, they did not reach me. CRI provided no proof of mailing or delivery for any billing statements or notices.

No Proof of Delivery or Diligence : CRI has no evidence that it sent any physical delinquency notice to me at all. They did not use certified mail, tracking, or any form of delivery confirmation to ensure I received the notice. In their response, CRI failed to provide a copy of any mailed notice or a postal receipt. This suggests that CRI did not exercise due diligence in notifying me of the delinquency. Given the known importance of these notices, failing to send them properly or at all is a serious oversight and a violation of federal requirements.

Violations of Federal Law and Regulations CRIs failure to provide written notices before damaging my credit is not only unfair it is illegal. The following laws and regulations were likely violated : Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s2 ( a ) ( 7 ) : This provision requires that any furnisher of credit information who reports negative information about a consumer to a credit bureau must send the consumer a written notice about the negative report either before or within 30 days of furnishing it. CRI furnished negative information ( 90-day late payments ) but never provided me any written notice within the required timeframe. By failing to notify me in writing of the negative credit reporting, CRI violated the FCRAs notice requirement.

Department of Education Regulations 34 C.F.R. 682.411 : As a federal student loan servicer under the FFEL program, CRI must follow the Department of Educations due diligence regulations. 34 C.F.R. 682.411 mandates that servicers send multiple written delinquency notices to a borrower at specific intervals as the loan becomes delinquent. By roughly the 90th day of delinquency, the servicer should have sent at least four separate collection letters urging the borrower to cure the delinquency, and at least two of those letters must warn that failure to pay will lead to credit bureau reporting of a default. In my case, XXXX failed to mail any of the required delinquency letters to my current address. They reported my loans as 90-days late without ever sending the series of notices required by 682.411. This lack of mailed notices is a clear breach of the federal due diligence standards for student loan servicing.

Higher Education Act 20 U.S.C. 1083 ( e ) : Federal law requires student loan lenders/servicers to provide borrowers with important disclosures in writing during repayment. This includes informing borrowers of their repayment obligations and options in writing, especially when loans are transferred to a new servicer and 
when a borrower becomes delinquent. CRI appears to have taken over servicing of my loans ( or at least was servicing them during the relevant time ) yet never provided a written notice of my repayment schedule or options after the transfer, as required by 20 U.S.C. 1083 ( e ). Furthermore, when I became 60 days delinquent, CRI should have sent a written notice detailing how to avoid default ( including the default date and minimum payment to prevent default ). CRI sent no such notices. By failing to notify me in writing of my obligations after taking over my loans and by failing to send the 60-day delinquency notice, CRI violated the Higher Education Acts servicing requirements.

Consumer Financial Protection Act ( UDAAP ) 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) : It is unlawful for a financial services company to engage in any unfair, deceptive, or abusive act or practice. CRIs conduct here was unfair and deceptive. It was unfair for CRI to damage my credit by reporting late payments while withholding the very notices that would have enabled me to prevent that harm. It was deceptive ( and misleading ) for CRI to assert compliance by referencing an email and routine statements, while in reality it failed to provide the required clear, mailed warning of negative reporting. By violating the above federal laws and failing to meet basic notice standards, CRI has also violated the Consumer Financial Protection Acts prohibition on unfair or deceptive practices.

Each of these violations is serious on its own. Taken together, they paint a picture of systemic non-compliance by CRI with the rules meant to protect student borrowers. CRIs failure to follow federal notice requirements not only broke the law but also directly resulted in significant harm to me ( severe credit report damage without notice ).

Because of CRIs actions, my student loan trade lines now show 90 days late in my credit reports. These are major derogatory marks that have drastically lowered my credit score. I have been financially responsible and would have addressed any missed payments immediately had I known about them. Instead, due to CRIs lack of communication, I was blindsided by these negative reports. This has affected my ability to obtain credit on fair terms and could impact other areas of my financial life ( such as insurance or employment background checks ) due to the damaged credit. It is fundamentally unfair that my credit was harmed in this way when I was never given the legally required warnings. 



Moreover, the loans in question are federal student loans, which come with numerous options ( forbearance, deferment, income-driven plans ) to help avoid delinquency. Had CRI contacted me properly, I could have pursued one of those options. CRIs failure to communicate effectively meant I lost the chance to take action, which is precisely the outcome the federal notice requirements are designed to prevent.

Requested Resolution To resolve this complaint, I respectfully request that the Consumer Financial Protection Bureau ( CFPB ) ensure the following actions are taken : Removal of Negative Credit Marks : Immediately remove all 90-day late payment notations that CRI furnished XXXX XXXX XXXX XXXX XXXX regarding my student loans. These late marks should be deleted in their entirety from each credit bureaus files. This correction is warranted because the negative reporting was done in violation of federal law ( no prior notice to me ).

Preservation of Account History : In removing the late marks, do not close or delete the underlying loan accounts. The accounts should remain open/active ( or in whatever status they were prior to the
delinquency reporting ) and retain their full positive payment history and original opening date. I am only disputing the negative late payment entries, not the existence of the loans themselves. The loans should continue to report as open and in good standing, as they were before this incident, to avoid any further credit score impact from loss of account age/history.

Proof of Mailed Notice or Removal : If CRI believes it did send any required delinquency notices, it must provide proof. Such proof should be a copy of the actual mailed notice and evidence of mailing with tracking or delivery confirmation to my address. If CRI can not produce concrete proof ( e.g., certified mail receipts, USPS tracking, or similar ) that it sent me the required written notices to my correct address, then CRI must remove the negative credit marks and cease any claim that I was properly notified. In short, without proof of compliance with the notice requirements, the 90-day late marks must be deleted due to CRIs noncompliance with federal law.

Additionally, I request that CRI review and improve its notification procedures so that no other borrowers face this problem. CRI should verify borrower contact information and use reliable mailing methods ( with delivery tracking ) for delinquency notices, to ensure compliance with the law and prevent unfair credit reporting.

Thank you for your attention to this matter. I am providing documentation of CRIs response ( which admits to sending only an email and billing statements ) and any relevant account records. I urge the CFPB to take appropriate action to resolve my complaint and prevent such violations from recurring.

Company response to consumer: Closed with explanation