Consumer complaint received 2024-03-23 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Nelnet, Inc.
State: TX

Complaint narrative:
I am composing this complaint in response to my most recent correspondence received from Nelnet which includes a threat of negligence and false information. Nelnet Inc. hereinafter the Company is violating my rights. My account should either reflect paid in full or be placed in BILLING ERROR STATUS due to the Company receiving payment, but not applying the payment on my account. In accordance with Article 3 of the UCC, specifically UCC 3-603, not only was tender of payment provided, but the Company is a person authorized to enforce payment under said law.

In accordance with 12 CFR 1026.13 - Billing Error Resolution The consumer need not pay ( and the creditor may not try to collect ) any portion of any required payment that the consumer believes is related to the disputed amount ( including related finance or other charges ). AND The creditor or its agent shall not ( directly or indirectly ) make or threaten to make an adverse report to any person about the consumer 's credit standing, or report that an amount or account is delinquent, because the consumer failed to pay the disputed amount or related finance or other charges A creditor shall not accelerate any part of the consumer 's indebtedness or restrict or close a consumer 's account solely because the consumer has exercised in good faith rights provided by this section. A creditor may be subject to the forfeiture penalty under 15 U.S.C. 1666 ( e ) for failure to comply with any of the requirements of this section.

Although the discharge of the debt was accepted by and filed with the IRS via From 1099-C on XX/XX/XXXX, the discharge has not been applied to my account. I have made several good-faith attempts to resolve the disputes as defined in the Truth In Lending Act ( TILA ) 12 CFR 1026.12 ( c ). I sent letters to explain, detailing the unlawful behavior that constitutes multiple Events of Default on the part of the Company. In short, other than the violations of my consumer rights protected under the CFRs that the Company agreed to, the Company is also engaged in securities fraud under the Security Exchange Act of 1934, and the Securities Act of 1933. I have tried multiple times to solve the issue without involving regulatory agencies.

Under the UCC 3-603 TENDER OF PAYMENT If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. Despite these violations, another statement of solicitation was sent to me, threatening me, but when I sent a negotiable instrument via registered mail ( which is in accordance with the Uniform Commercial Code Article 3-104 as legal tender of payment ) for the updated Total Balance ( received by the Company XX/XX/XXXX ) that was stolen, not applied to my account, and no valid response was given as to why the payment was never applied to my account despite me having requested said information. The Company has responded in writing but the response was nothing more than empty threats and language fraud. 

As indicated in the attached XXXX XXXX XXXX XXXX excerpt, Nelnet transfers ( treating every transfer as a sale ) debt to various banks, affiliates, and trusts. I have rescinded the right to security interest in the title to my Nelnet account and all related securities in connection thereto on XX/XX/XXXX. Although Nelnet was notified in a timely manner of this change to my one-party contract, they have not acknowledged this change and instead continue to transfer my securities unlawfully. In light of the transfers, as a Noteholder who owns the rights to the securities, the company has defaulted on principal and interest payments owed to me in accordance with the Securities Act of 1933. The fact that the debt is sold from the depositor to the issuer, to the indenture trustee, and around to the other various affiliates in their transaction structure means Nelnet Inc has no rights whatsoever to solicit money from me. This is also a grave violation of the Privacy Act and FERPA of 1974 rules regarding my personal nonpublic information being passed around to said affiliates and trustees. I have never and will never consent to my nonpublic personal information being shared to the aforementioned entities.

By sending me letters that both ( 1 ) say the total payment due is greater than {$0.00} and ( 2 ) omit credits that should have been applied from the aforementioned payments that I sent, while the Company neglects to present valid documentary evidence regarding the so-called debt-obligation which has been lawfully discharged for many months, as confirmed by the IRS, the Company is engaging in gross violations of The Securities Act of 1933 section 11 which prohibits misrepresentations and omissions of material fact. 

After XX/XX/XXXX, when former President Roosevelt signed into law HJR 192 which states payment in gold or a particular kind of coin or currency, or in an amount in money policy ; and Every obligation heretofore or hereafter incurred, shall be discharged upon payment, dollar for dollar, in any coin or currency which at the time of payment is legal tender for public and private debts. it became immediately lawful to discharge my obligation through the legal tender of payment I sent Nelnet last XXXX ( registered mail number : XXXX ). Further truths resulting from HJR 192 include the fact that provisions of obligations which purport to give the obligee a right to require payment in a particular kind of coin or currency are inconsistent with the declared policy of congress in the payment of debts. Thus, it is clear that, as a result of HJR 192, no one has been able to pay a debt. The only thing I can do is tender payment in transfer of debts, and the debt is perpetual. The suspension of the gold standard, and prohibition against paying debts in lawful money, removed the substance for our Common Law to operate on, and created a void, as far as the law is concerned. This substance was replaced with a Public National Credit system where debt is money ( The Federal Reserve calls it " monetized debt '' ), pointing to the reason why their refusal to accept my tender of payment is unlawful and why I have recourse.

Please provide documentary evidence to prove the most recent statements are correct and why the Form 1099-C isnt valid. Otherwise credit my account of the full amount including all late fees, finance charges, and the total value I sent to the Company over the last 5 months. My promissory note with the Company outlines a consumer credit contract. A consumer credit contract is any instrument that evidences or embodies a debt arising from a money purchase loan transaction as defined in paragraphs ( d ) and ( e ) of 16 CFR 433.1. A money purchase loan is a cash advance in return for a finance charge within the meaning of Regulation Z. Therefore the Company is not allowed to send statements in which they misrepresent money owed by me to them when, in truth, they have received multiple payments that have not been applied to my account.

The fact of the matter is that I am very aware that there is a linked custodial Primary Account connected to my Nelnet account with my name and social security number ( created without my informed consent ), and this account has been used to make it seem as if Nelnet and the other entities mentioned herein are following the laws mentioned herein while they continue to violate my rights.

Again, in addition to all of those violations, the Company has neglected to pay all principal and interest due to me as a bona fide purchaser and holder in due course of securities ( including said promissory note ) as defined in the UCC Articles 3 in connection to my account. Due to the fact that my application, resulting in said note, which was transferred to affiliates and securitized for a discounted par rate through the United States Treasury, omitted the proper disclosures upon its face, the Company has committed fraud and every entity involved is implicated in such fraud under the Securities Exchange Act of 1934.

Demands : - My account is to be placed in Billing Error Status until these issues have been fully resolved to my satisfaction.

- My account is to be immediately credited with the greater of {$49000.00} or the Current Balance amount, fully discharging the debt due to previous payments.

- The Indenture Trustee is to wire {$490000.00} to my XXXX account ( 10 times the amount of the stolen securities ) for the damages this has caused myself and my family.

-- Bank Name : XXXX -- Routing Number : XXXX -- Account Number : XXXX - I am to receive written confirmation of these changes to my account via email ( provided below ) ASAP. 
- My credit report is to be fixed to reflect Paid In Full. 

As a consumer and an investor, I have the right to make sure my finances and livelihood are in good standing. If the Company decides that it is not going to comply with the demands in this notice I will be forced to involve more regulatory agencies including but not limited to the SEC, the FDIC, and the OCC regarding securities fraud.

Company response to consumer: Closed with explanation