Consumer complaint received 2025-03-25 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:
Formal Dispute Regarding False Identity Theft Designation and Failure to Investigate CFPB Complaint ID XXXX and XXXX From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXXXXXX XXXX Account Number XXXX XXXX To : Aidvantage Dispute Resolution Department XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX CC : XXXX, CFPB, FTC Subject : Formal Demand for Investigation and Correction of False Fraud Classification on Student Loan Account To Aidvantage Dispute Resolution Department, This letter serves as a formal dispute and demand for correction regarding your false designation of my student loan account as associated with an identity theft or forgery claim. I did not initiate, authorize, or consent to any identity theft claim or fraud dispute on this account. Your actions have triggered a chain of violations under federal and XXXX consumer protection laws. 
This letter supplements and escalates my previously filed complaints with the Consumer Financial Protection Bureau under CFPB Complaint ID XXXX and CFPB Complaint ID XXXX. 
Aidvantages responses dated XX/XX/year>, and XX/XX/year>, both failed to address the core allegations raised in those filings. Instead of conducting a lawful investigation into the unauthorized fraud classification of my account, Aidvantage issued vague, boilerplate responses that ignored my sworn and notarized documentation, misrepresented the source of the alleged fraud designation, and improperly redirected the issue to an unrelated complaint against XXXX. 
These responses collectively reveal a pattern of procedural misconduct and regulatory evasion. 
Breach of Federal Servicing Obligations and Public Trust Standards Aidvantages designation as a federal loan servicer is not a privilege of discretionit is a position of legal obligation. By accepting federal funds, handling federally-backed consumer accounts, and transmitting information to consumer reporting agencies, Aidvantage operates under binding statutory, fiduciary, and commercial standards enforceable by law, irrespective of any federal agency intermediary. 
Aidvantages conduct in this matterfalsely labeling a consumer loan as associated with identity theft, failing to provide investigative records, and misrepresenting the source of the classificationconstitutes a direct breach of the following core obligations : Statutory Compliance : Aidvantage is legally bound to adhere to the Fair Credit Reporting Act ( FCRA ), the Consumer Financial Protection Act ( CFPA ), and all federal consumer protection laws governing data accuracy, investigatory integrity, and truthful consumer communication. These are not optional. Violation of these statutes renders the servicer liable under 15 U.S.C. 1681n and 1681o ( willful/negligent noncompliance ), and 12 U.S.C. 5536 ( UDAAP ). 
Fiduciary Duty to the Borrower : Servicers of federal accounts are entrusted with sensitive financial and identity-related data. Misclassifying an account as fraudulent without consent or evidence violates the fundamental duty of care owed to consumers and erodes the trust that underpins all federally-linked servicing relationships. 
Contract-Based Responsibilities : Regardless of whether specific contractual terms are publicly disclosed, any entity entrusted with the management of federally supported debt must act in accordance with implied covenants of good faith and fair dealing. Assigning a fraud designation without basis, ignoring formal rebuttals, and demanding that the consumer write a letter to fix the servicers own misconduct is a textbook breach of commercial servicer conduct. 
Public Trust Accountability : Aidvantage acts as a federal-facing data gatekeeper. It is accountable not just to the borrower, but to the integrity of the public credit infrastructure and consumer reporting ecosystem. Misuse of this role constitutes a material breach of public trust, with potential implications for systemic risk, regulatory scrutiny, and litigation exposure. 
Aidvantages pattern of evasion, misrepresentation, and procedural noncompliance in this case places the company on a collision course with multi-agency enforcement. The breach is not merely technicalit is institutional. 
I. Summary of Violations and Procedural Failures 1. Misclassification Without Authorization You labeled my student loan as part of an identity theft claim without my consent. No identity theft or fraud claim was submitted by me to Aidvantage or XXXX regarding this account. 
2. Failure to Investigate and Provide Evidence You failed to disclose : Who submitted the alleged fraud report Any communication logs showing attempted outreach Any documentation used to support the identity theft designation 3. Improper Burden-Shifting Both your XX/XX/XXXX and XX/XX/XXXX responses instructed me to write a letter to remove the fraud designationdespite the fact that I never initiated it. This is procedurally and legally improper under FCRA 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ), which requires furnishers to correct false information without placing the burden on the consumer. 
4. Misdirection and False Claims to a Federal Agency You repeatedly cited CFPB Complaint ID XXXX ( filed against XXXX ), falsely claiming it triggered your internal fraud process. This is a material misrepresentation to both me and federal regulators. 
5. Failure to Acknowledge Sworn and Notarized Evidence You ignored the Affidavit of Truth and FTC Fraud Report submitted in connection with my disputeboth of which clearly confirm that I never filed an identity theft or fraud-related dispute. Your failure to acknowledge or address these materials violates your duties under the FCRA and CFPA. 
II. Legal and Statutory Violations Federal Law : FCRA 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) : Furnishing inaccurate information without authorization. 
FCRA 1681i ( a ) ( 6 ) : Failure to provide documentation related to a disputed claim. 
FCRA 1681e ( b ) : Failure to ensure maximum possible accuracy of reported data. 
CFPA 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) : Unfair, deceptive, and abusive acts ( UDAAP ). 
15 U.S.C. 45 : Unfair and deceptive acts under the FTC Act. 
18 U.S.C. 1001 : False statements or misrepresentations to a federal agency. 
D.C. Law : D.C. CPPA 28-3904 ( e ) : Material misrepresentation of a consumer transaction. 
D.C. CPPA 28-3904 ( f ) : Failure to perform legal duties required by law. 
III. Formal Legal Demands Aidvantage is required to take the following actions within 30 business days : 1. Remove the Fraud Designation You must provide written confirmation that all fraud-related classifications on my student loan account have been permanently removed. 
2. Confirm No Adverse Credit Reporting If you reported this fraud code to any CRAs, you must provide documentation that it has been corrected and no longer appears in my file. 
3. Disclose the Investigation Record Provide the full internal investigation record, including : Name of the individual or system that initiated the fraud designation Any internal correspondence Any documentation provided to XXXX 4. Explain Why CFPB Complaint ID XXXX and XXXX Was Not Addressed Provide a direct written explanation as to why your responses failed to address my core allegations in the original CFPB complaint. 
IV. Notice of Escalation if Aidvantage Fails to Comply If you do not take immediate corrective action, I will escalate this matter to the following agencies for formal investigation and enforcement : Consumer Financial Protection Bureau ( CFPB ) : As the primary regulatory authority for FCRA and UDAAP violations, the CFPB is responsible for enforcing 15 U.S.C. 1681s-2, 1681i, and 12 U.S.C. 5536 where furnishers misreport, mishandle disputes, or shift legal burdens onto consumers. 
Federal Trade Commission ( FTC ) : The FTC enforces prohibitions against unfair and deceptive business practices under 15 U.S.C. 45. Aidvantages misrepresentation of complaint origins and failure to investigate constitute actionable deception and fraud. 
Federal Communications Commission ( FCC ) : The FCC oversees electronic and mailed communications that involve deceptive representations or the simulation of legal or regulatory process. Misuse of identity theft packets and false claims of consumer outreach fall under its jurisdiction. 
National Association of Attorneys General ( NAAG ) : State Attorneys General may coordinate multistate enforcement where violations of state consumer protection lawssuch as D.C. CPPA 28-3904 ( e ) and ( f ) suggest a broader pattern of systemic harm across jurisdictions. 
U.S. Department of Justice ( DOJ ) Civil and Criminal Divisions : Aidvantages materially false statements to a federal agency, along with the use of mail or electronic communication to support a false fraud classification, may trigger liability under 18 U.S.C. 1001, 1341 and 1343, and 18 U.S.C. 19611968 ( RICO ). 
DOJ Consumer Protection Branch ( CPB ) : The CPB has jurisdiction over enterprise-level consumer fraud and systemic FCRA violations . Aidvantages pattern of misclassification, evasion, and misdirection meets the threshold for CPB referral due to its obstruction of lawful dispute processes and regulatory oversight. 
V. Attached Documentation The following supporting documents are enclosed : Affidavit of Truth ( Sworn and Notarized ) Legal certification of my position and dispute history. 
FTC Fraud Report ID XXXX Confirming no identity theft dispute was submitted on this account. 
FTC Fraud Report ID XXXX Documents false identity theft classification by Aidvantage and XXXX and confirms no fraud dispute was ever submitted by the consumer. 
CFPB Complaint ID XXXX ( CLOSED ) Irrelevant XXXX complaint misused in Aidvantages response XXXX 
CFPB Complaint ID XXXX ( CLOSED ) Core complaint ignored in Aidvantages prior response. 
CFPB Complaint ID XXXX ( CLOSED ) Rebuttal to Aidvantages Misclassification and Failure to Address CFPB Complaint ID XXXX VI. Final Notice to Aidvantage Aidvantage is now on formal notice. You are required to immediately correct this false identity theft designation, produce all investigative and internal records as outlined above, and issue a legally sufficient resolution within 30 business days of receipt of this notice. 
Failure to comply will be treated as willful, ongoing statutory noncompliance, triggering immediate escalation to federal and state enforcement bodies, referral to oversight agencies listed herein, and the pursuit of all available civil and legal remedies under applicable law. 
All correspondence, internal communications, and investigative documentation related to this matter will be treated as subject to subpoena, discovery, and FOIA/public records review in any subsequent regulatory action, litigation, or oversight proceeding. 
This record is now active. No further warnings will be issued. 
Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation