Consumer complaint received 2023-03-14 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA
State: PA

Complaint narrative:
There is nothing in any of these Promissory Contracts that allows or permits AES/PHEAA to send as many notices as they want. Most of their employees become aggressive, angry, hateful, and vengeful towards me when I defend my rights. PHEAA is bound by Regulatory requirements which are being violated as pointed out in the previous complaint. My understanding of the signing of these Contracts was that one notice would be sufficient. PHEAA is stepping over the line by over-sending notices. PHEAA 's ignorance to the matter only subjugates their profound censorship of the truth. PHEAA is hereby put on notice to CEASE AND DESIST WITH ALL NOTICES ABOUT DELINQUENCY to both BORROWER AND COSIGNER. 

In this Credit Agreement, the words I, me, my, and mine mean the person ( s ) who signed this Credit Agreement as Borrower and Cosigner. The words you, your, yours, and Lender mean XXXX XXXX  XXXX, its successors and assigns, and any other holder of this Credit Agreement. School means the school named at the top of the first page of this Credit Agreement. The servicer means the Lender or any entity it designates to service my loan. 
A. PROMISE TO PAY : I promise to pay to you the principal sum of the Loan Amount Requested shown on the first page of this Credit Agreement, to the extent it is advanced to me or paid on my behalf, and any Loan Origination Fee added to my loan ( see Paragraph F ) ( together the Principal Sum ), interest on such Principal Sum, interest on any unpaid interest added to the Principal Sum and late fees ( see Paragraph E.6 ).

B. IMPORTANT READ THIS CAREFULLY : 1. When you receive my signed Credit Agreement, you are not agreeing to lend me money. If you decide to make a loan to me, you will electronically transfer the loan funds to the School for me, mail a loan check to the School for me, or mail a loan check directly to me. You have the right to not make a loan or to lend an amount less than the Loan Amount Requested. I agree to accept an amount less than the Loan Amount Requested and to repay that portion of the Loan Amount Requested that you actually lend to me along with interest and all other amounts I owe ( see Paragraph A ). 
You have the right to disburse my loan through an agent. At your option, you may also make any loan check co-payable to me and the Cosigner or to me and the School.

2. HOW I AGREE TO THE TERMS OF THIS LOAN. By signing this Credit Agreement, and submitting it to the Lender, I am requesting that you make this loan to me in an amount equal to the Loan Amount Requested plus any Loan Origination Fee described in Paragraph F of this Credit Agreement. If you approve this request and agree to make this loan, you will notify me in writing and provide me, as required by law, with one Disclosure Statement at the time of the first disbursement or a Disclosure Statement at the time of each disbursement. Each Disclosure Statement is incorporated herein by reference and made a part hereof. Each Disclosure Statement will tell me the amount of the loan that you have approved, the amount of the Loan Origination Fee, and other important information. I will let you know that I agree to the terms of the loan as set forth in this Credit Agreement and in each Disclosure Statement by doing either of the following : ( a ) endorsing or depositing the check that disburses the loan proceeds; or ( b ) allowing the loan proceeds to be used by or on behalf of the student Borrower without objection. Upon receipt of each Disclosure Statement, I will review it and notify you in writing if I have any questions. If I am not satisfied with the terms of my loan as disclosed in a Disclosure Statement that covers my entire loan amount, I may cancel my loan by giving you a written cancellation notice within ten ( 10 ) days after I receive the Disclosure Statement. If I am not satisfied with the terms of my loan as disclosed in a Disclosure Statement that covers only one of multiple disbursements of my loan, to cancel the disbursement covered by that Disclosure Statement, I will give you a written cancellation notice within ten ( 10 ) days after I receive the Disclosure Statement and I understand that unless I withdraw from the School or I or my School specifies otherwise, the cancellation of any disbursement will not cancel any future disbursements. Previous disbursements may not be canceled under any circumstances. I understand that I must repay, in accordance with the terms of this Credit Agreement, all amounts disbursed but not canceled. If loan proceeds have been disbursed, I agree that I will immediately return the canceled disbursement to you, will not endorse any check that disburses the loan proceeds to be canceled, and will instruct the School to return the canceled disbursement to you. If I give notice of cancellation but do not cause the return of the disbursement as stated above, the disbursement will not be canceled and I will be in default of this Credit Agreement. ( See Paragraph I. ) C. DEFINITIONS : 1. Disbursement Date means the date or dates on which you lend money to me in consideration for my Credit Agreement and will be the date ( s ) shown on any loan check you prepare or the date ( s ) you initiate any electronic funds transfer.

2. The Deferment Period will begin on the first Disbursement Date and end on the Deferment End Date.

3. Deferment End Date means the date specified below for the applicable loan program ( the applicable loan program is stated on the first page of this Credit Agreement ).

( a ) Undergraduate Alternative Loan Program : If I have elected the Immediate Repayment option ( the applicable repayment option is stated on the first page of this Credit Agreement ), there is no Deferment Period, and my first payment will be 30-60 days after the final disbursement of my loan. If I have elected the Interest Only repayment option ( the applicable repayment option is stated on the first page of this Credit Agreement ), then interest payments will begin 30-60 days after the first disbursement of my loan, the Deferment End Date will be the date the student Borrower first graduates or ceases to be enrolled at least half-time in the School ( or another school participating in this loan program ), and principal and interest payments will begin 30-60 days after that date. In any event, if I have elected the Interest Only repayment option, the Deferment End Date will be no more than 5 years after the first Disbursement Date. If I have elected the Full Deferral repayment option ( the applicable repayment option is stated on the first page of this Credit Agreement ), then the Deferment End Date will be 180 days after the date the student Borrower first graduates or ceases to be enrolled at least half-time in the School ( or another school participating in this Loan Program ). In any event, if I have elected the Full Deferral repayment option, the Deferment End Date will be no more than 5 years after the first Disbursement Date. For borrowers who chose the Interest Only or full Deferral repayment options, joint and serial ( associates to bachelors ) degree recipients may continue in-school deferment while completing their second degree, up to the 5-year or 5 -year maximum. Regardless of the repayment option I chose and after the Deferment End Date, this loan may be eligible upon written request for deferment periods of up to five ( 5 ) years total ( Additional Deferment ) as long as the student Borrower is enrolled at least half time to complete an undergraduate or graduate degree ( at a school participating in this loan program ) or begins a medical internship or residency program. The Servicer may treat any notice of a revised graduation date or of new enrollment as my written request for Additional Deferment. You will capitalize ( see Paragraph D.3 ) accrued and unpaid interest as of the end of each deferment period. All such capitalized interest shall be repaid with the principal balance.

( b ) Graduate Professional Education Loan Program : The Deferment End Date will be 180 days after the student Borrower graduates or ceases for any other reason to be enrolled at least half-time in the School ( or another school participating in this Loan Program ), but no more than 4 years after the first Disbursement Date ; provided, however, that if the student Borrower begins a medical residency or internship during the Deferment Period, then the Deferment Period will end 180 days after the day the residency or internship ends, but no more than 8 years after the first Disbursement Date.

( c ) Health Professions Education Loan Program : The Deferment End Date will be 270 days after the student Borrower graduates or ceases for any other reason to be enrolled at least half-time in the School ( or another school participating in this Loan Program ), but no more than 6 years after the first Disbursement Date ; provided, however, that if the student Borrower begins a medical residency or internship during the Deferment Period, then the Deferment Period will end 270 days after the day the residency or internship ends, but no more than 10 years after the first Disbursement Date.

( d ) Residency Loan Program : The Deferment End Date will be 270 days after the student Borrower ceases for any reason to be enrolled in a medical residency or internship, but no more than 4 years after the Disbursement Date.

4. The Repayment Period begins the day after the Deferment Period ends. If there is no Deferment Period for my loan, the Repayment Period will begin when my loan is fully disbursed. The Repayment Period is 20 years ( 25 years for loans with a Principal Sum of {$40000.00} or more ) unless monthly payments equal to the minimum monthly payment amount ( See Paragraph E.2 ) will repay all amounts owed in less than 20 years, in which case the Repayment Period will be the number of months necessary to pay in full the amount I owe at the minimum payment. Additional Deferment ( See Paragraph C ( 3 ) ( a ) ) will not extend the Repayment Period.

D. INTEREST : 1. Accrual Beginning on the first Disbursement Date, interest will be calculated at the Variable Rate ( Paragraph D.2 ) and charged on the Principal Sum, and on any unpaid interest later added to the Principal Sum according to Paragraph D.3 . During the Repayment Period, interest will be calculated at the Variable Rate and charged on the outstanding balance of this Credit Agreement until all amounts are paid in full.

Interest will be calculated on a daily simple interest basis. The daily interest rate will be equal to the annual interest rate in effect on that day, divided by the number of days in that calendar year.

2. Variable Rate The Variable Rate is equal to the Current Index plus a Margin.

The Margins for both the Deferment Period and the Repayment Period are shown on the first page of this Credit Agreement. In no event will the Variable Rate exceed the maximum interest rate allowed by the laws of the Commonwealth of Pennsylvania. 
The Variable Rate will change quarterly on the first day of each XXXX, XXXX, XXXX and XXXX ( the Change Date ( s ) ) if the Current Index changes. The Current Index for any calendar quarter beginning on a Change Date ( or for any shorter period beginning on any Disbursement Date and ending on the last day of a calendar quarter ) is based on the one-month London Interbank Offered Rate ( LIBOR ) as published in the Money Rates section of The XXXX XXXX XXXX ( XXXX XXXX ). The index for each calendar quarter ( or for any shorter period beginning on a Disbursement Date and ending on the last day of a calendar quarter ) will equal the average of the LIBOR rates published on the first business day of each of the three ( XXXX ) immediately preceding calendar months, rounded to the nearest one-hundredth of one percent ( 0.01 % ). If The XXXX XXXX XXXX ( XXXX XXXX ) is not published or the Current Index is not given on any of these dates, then the Current Index will be determined by using the immediately preceding published Current Index for such date. If the Current Index is no longer available, you will choose a comparable index. 
XXXX. Capitalization If I have elected the Full Deferral repayment option, I understand that you will add all accrued and unpaid interest to the principal balance of my loan ( capitalize interest ) as of the last day of the Deferment Period. In addition, if my loan will be disbursed in multiple disbursements and if I have elected the Immediate Repayment option, you will capitalize interest that accrues between the first disbursement of my loan and the final disbursement of my loan. I understand that regardless of the repayment option I chose, you will capitalize interest at the end of any forbearance period. In all cases, the sum of interest you capitalize plus the thenoutstanding principal balance is thereafter considered the principal balance, and interest will accrue on the new principal balance. 
{ XXXX } XXXX XXXX of XXXX XXXX TERMS OF REPAYMENT : XXXX. Deferment Period If I have elected either the Interest Only repayment option or the Full Deferral repayment option ( the applicable repayment option is stated on the first page of this Credit Agreement ), you will send statements during the Deferment Period ( showing the total outstanding principal balance of my loan and the interest that has accrued on my loan ). You reserve the right to send statements or notices to either the Borrower or the Cosigner. Statements will be sent to the address shown on your records. If I have elected the Interest Only repayment option, I agree to make payments each month during the Deferment Period equal to the accrued interest on the outstanding balance of this Credit Agreement. If I have elected the Full Deferral repayment option I may, but am not required to make payments during the Deferment Period. You will add any interest that I do not pay during the Deferment Period to the principal balance, as described in Paragraph D.3.

2. Repayment Period The amount of my monthly payment ( Monthly Payment Amount ) will be established based on the rules in this Credit Agreement when my Repayment Period begins. During the Repayment Period, you will send me monthly statements that show the Monthly Payment Amount and the payment due dates, and I will pay the Monthly Payment Amount shown on my monthly statement, which amount will in no event be less than {$25.00} or the unpaid balance, whichever is less. I understand that the Monthly Payment Amount is due each month. I may pay more than my Monthly Payment Amount at any time without penalty or charge. If my loan is in paidahead status, I may, but will not be required to make monthly payments. You reserve the right to send monthly statements to the Borrower and/or the Cosigner. Even if I do not receive monthly statements, I will make consecutive monthly payments in amounts at least equal to the Monthly Payment Amount by the applicable payment due dates until I have paid all of the principal and interest and any other charges I may owe under this Credit Agreement.

3. Repayment Terms- My Monthly Payment Amount will be calculated as of the day the Repayment Period begins ( Repayment Date ). It will be recalculated ( a ) once each year prior to the anniversary of the Repayment Date, ( b ) if the Variable Rate changes between anniversaries of the Repayment Date to the extent that the Monthly Payment Amount would not pay in full the accrued monthly interest on my loan, ( c ) following any subsequent deferment or forbearance period or ( d ) following any request by the Borrower to the servicer to change the monthly payment due date ( each of which events is a new Repayment Date ). As of any Repayment Date, my Monthly Payment Amount will be recalculated. My new Monthly Payment Amount will be disclosed to me by the servicer. The new Monthly Payment Amount will equal the amount necessary to pay in full, over the number of months remaining in the Repayment Period, the amount I owe in equal monthly installments of principal and interest at the Variable Rate in effect at the time of the calculation. I understand that this may result in a reduction or increase in my monthly payment as calculated as of each Repayment Date. I understand that during the Repayment Period ( and, if I have elected the Interest Only repayment option, during the period of interest payments ) the servicer may change the monthly payment due date of future payments to a later date for the convenience of the servicer in processing payments or in order to coordinate the due dates of all of my loans processed by the servicer.

4. Amounts Owing at the End of the Repayment Period Since interest accrues daily upon the unpaid principal balance of my loan, if I make payments after my payment due dates, I may owe additional interest. If I have not paid my late fees, I will also owe additional amounts for those late fees. In such cases you will increase the amount of my last monthly payment to the amount necessary to repay my loan in full.

5. Payments Payments will be applied first to late fees, other fees and charges, accrued interest, and the remainder to principal.

6. Other Charges - If any part of a monthly payment remains unpaid for a period of more than 15 days after the payment due date, I will pay a late fee not exceeding {$5.00} or 5 % of the overdue payment amount, whichever is less. To the extent permitted by law, I agree to pay you all amounts you incur in enforcing the terms of this Credit Agreement, including reasonable collection agency and attorney 's fees and court costs and other collection costs.

F. LOAN ORIGINATION FEE : If you charge me, I will pay you a Loan Origination Fee at the time my loan is disbursed. The dollar amount of any Loan Origination Fee will be determined by multiplying the Principal Sum times the Loan Origination Fee Percentage shown on the first page of this Credit Agreement. The percentage would be higher if computed only on the amount advanced rather than on the entire Principal Sum ( Loan Origination Fee plus the loan Amount advanced ). For example, a nominal Loan Origination Fee of 6.5 % on the entire principal amount would equal 6.9519 % of the amount advanced. The Loan Origination Fee I will pay, if any, will be shown on my Disclosure Statement and included with the Principal Sum. To the extent permitted by law, and unless I timely cancel a disbursement ( see Paragraph B.2 ), I will not be entitled to a refund of any Loan Origination Fee relating to that disbursement.

G. RIGHT TO PREPAY : I have the right to prepay all or any part of my loan at any time without penalty.

H. FORBEARANCE : If I am unable to repay my loan in accordance with the terms established under this Credit Agreement because of a hardship such as financial or medical difficulty, I may request that you modify these terms. I understand that such modification would be at your option. I understand that I will remain responsible for all interest accruing during any period of forbearance and that you will add any interest that I do not pay during any forbearance period to the principal balance, as described in Paragraph D.3.

I. WHOLE LOAN DUE : To the extent permitted by applicable law, I will be in default and you have the right to give me notice that the whole outstanding principal balance, accrued interest, and all other amounts payable to you under the terms of this Credit Agreement, are due and payable at once ( subject to any applicable law which may give me a right to cure my default ) if : ( 1 ) I fail to make any monthly payment to you when due, ( 2 ) I die, ( 3 ) I break any of my other promises in this Credit Agreement, ( 4 ) any bankruptcy proceeding is begun by or against me, or I assign any of my assets for the benefit of my creditors, or ( 5 ) I make any false written statement in applying for this loan or any other loan or at any time during the Deferment or Repayment Periods. If I default, I will be required to pay interest on this loan accruing after default. The interest rate after default will be subject to adjustment in the same manner as before default.

To the extent permitted by applicable law, upon default, you may also capitalize any interest and fees ( i.e., add accrued and unpaid interest and fees to the principal balance ), and increase the Margin used to compute the Variable Rate by two percentage points ( 2 % ).

J. NOTICES : 1. I will send written notice to you, any subsequent holder of this Credit Agreement, and the servicer within ten days after any change in name, address, or enrollment status ( for example, if the Borrower withdraws from the School or transfers to another school participating in this loan program ).

2. Any notice required to be given to me by you will be effective when mailed by first class mail to the latest address you have for me. Unless required by applicable law, you need not give a separate notice to the Cosigner.

K. INFORMATION : 1. I must update the information I provided to you whenever you ask me to do so.

2. I authorize you from time to time to request and receive from others credit related information about me ( and about my spouse if I live in a community property state ).

3. CREDIT BUREAU REPORTING You may report information about my account to credit bureaus. Late payments, missed payments, or other defaults in my account may be reflected in my credit report.

I understand that the reporting of information about my account to credit bureaus may adversely affect my credit rating and my ability to obtain other credit. You may also provide the School with certain personally-identifiable information about me ( such as my Social Security Number and my Loan ID number ) and report the status of my loan and my payment history, including information about a late payment, missed payment or other defaults, to the School and others in accordance with applicable law.

L. ADDITIONAL AGREEMENTS : 1. I understand that you are located in Pennsylvania and that this Credit Agreement will be entered into in the same state. CONSEQUENTLY, THE PROVISIONS OF THIS CREDIT AGREEMENT WILL BE GOVERNED BY FEDERAL LAW AND THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, WITHOUT REGARD TO CONFLICT OF LAW RULES.

2. The proceeds of this loan will be used only for my educational expenses at the School. The Cosigner will not receive any of the loan proceeds.

3. My responsibility for paying the loan evidenced by this Credit Agreement is unaffected by the liability of any other person to me or by your failure to notify me that a required payment has not been made. Without losing any of your rights under this Credit Agreement you may accept ( a ) late payments, ( b ) partial payments or ( c ) payments marked paid in full or with other restrictions. You may delay, fail to exercise, or waive any of your rights on any occasion without losing your entitlement to exercise the right at any future time, or on any future occasion. You will not be obligated to make any demand upon me, send me any notice, present this Credit Agreement to me for payment or make protest of non-payment to me before suing to collect on this Credit Agreement if I am in default, and to the extent permitted by applicable law, I hereby waive any right I might otherwise have to require such actions.

I WILL NOT SEND YOU PAYMENTS MARKED PAID IN FULL, WITHOUT RECOURSE OR WITH OTHER SIMILAR LANGUAGE UNLESS THOSE PAYMENTS ARE MARKED FOR SPECIAL HANDLING AND SENT TO THE ADDRESS IDENTIFIED FOR SUCH PAYMENTS ON MY BILLING STATEMENT, OR TO SUCH OTHER ADDRESS AS I MAY BE GIVEN IN THE FUTURE.

4. I may not assign this Credit Agreement or any of its benefits or obligations. You may assign this Credit Agreement at any time.

5. The terms and conditions set forth in this Credit Agreement and the Disclosure Statement constitute the entire agreement between you and me.

6. If any provision of this Credit Agreement is held invalid or unenforceable, that provision shall be considered omitted from this Credit Agreement without affecting the validity or enforceability of the remainder of this Credit Agreement.

7. A provision of this Credit Agreement may only be modified if jointly agreed upon in writing by you and me. Any modification will not affect the validity or enforceability of the remainder of this Credit Agreement.

8. To the extent permitted by law, you have the right to apply money from any of my deposit account ( s ) with you to pay all or a portion of any amount overdue under this Credit Agreement. I hereby authorize you to obtain from the School all amounts which may be owed to me by the School, including any refund due to overpayment, early termination of enrollment, or otherwise.

9. If this Credit Agreement is executed by more than one Borrower, each Borrower agrees that any communication between you and any of the Borrowers will be binding { W0491750.1 } PC.06-07.CSX1.10SC.0306 5 of 6 on all of the Borrowers. I intend to be treated as a principal of this Credit Agreement and not as a surety. To the extent I may be treated as a surety, I waive all notices to which I might otherwise be entitled as such by law, and all suretyship defenses that might be available to me ( including, without limitation, contribution, subrogation and exoneration ). I agree that the Borrower may agree to any forbearance or other modification of the repayment schedule and that such agreement will be binding on me. It shall not be necessary for you to resort to or exhaust your remedies against the borrower before calling upon me to make repayment. For purposes of this paragraph only, I and me refer to the Cosigner only.

10. All dollar amounts stated in this Credit Agreement are in United States dollars. I will make all payments in United States Dollars with no deduction for currency exchange.

11. If the student Borrower fails to complete the education program paid for with this loan, the Cosigner and I are not relieved of any obligation within or pursuant to this Credit Agreement.

12. I understand and agree that this loan is an education loan and certify that it will be used only for costs of attendance at the School. I acknowledge that the requested loan is subject to the limitations on dischargeability in bankruptcy contained in Section 523 ( a ) ( 8 ) of the United States Bankruptcy Code because either or both of the following apply : ( a ) this loan was made pursuant to a program funded in whole or in part by The Education Resources Institute , Inc.

( " TERI '' ), a non-profit institution, or ( b ) this is a qualified education loan as defined in the Internal Revenue Code. This means that if, in the event of bankruptcy, my other debts are discharged, I will probably still have to pay this loan in full.

13. I authorize any school that I may attend to release to you, and any other persons designated by you, any requested information pertinent to this loan ( e.g., enrollment status, prior loan history, and current address ).

14. I authorize the Lender, any subsequent holder of this Credit Agreement, and their agents to : ( 1 ) advise the School of the status of my application and my loan, ( 2 ) respond to inquiries from prior or subsequent lenders or holders with respect to my Credit Agreement and related documents, ( 3 ) release information and make inquiries to the persons I have given you as references, for the purposes of learning my current address and telephone number, ( 4 ) check my credit and employment history and to answer questions about their credit experience with me, and ( 5 ) disclose to TERI, the Borrower, and/or the Cosigner either in connection with this transaction or any future transaction all information ( including status information and non-public personal information ) of the Borrower and/or the Cosigner provided in connection with this Credit Agreement. If in the future I apply for a loan that is guaranteed by TERI and funded by another lender, I also authorize the sharing of application information for this loan ( other than information in a consumer report ) with the other lender and TERI and the reuse of such information by such new lender and TERI in my new application.

15. Waiver by Lender : You waive ( give up ) any right to claim a security interest in any property to secure this Credit Agreement. This does not affect any right to offset as a matter of law.

16. If I fax my signature ( s ) on the first page of this Credit Agreement back to you and keep the copy I signed, I understand that under federal law the fax you receive will be an original of the first page of this Credit Agreement. You and I agree that all copies of this Credit Agreement ( including the fax you receive and the copy I retain ), taken together, shall constitute a single original agreement.

17. If any Borrower or Cosigner elects to sign electronically an electronic record of this Credit Agreement, then the following will apply as between Lender and such person : ( a ) Lender will keep a non-modifiable electronic record of this document and provide a copy to me upon request, ( b ) I can and have downloaded and/or printed a copy of this document for my records or notified the Lender to mail me a copy of this document, and ( c ) the Lenders electronic record of this document and any printout from that record shall be an original for all purposes, including any lawsuit to collect amounts that I owe. If I physically sign a copy of this document that has been electronically signed by any other Cosigner or Borrower, as between me and the Lender the copy I sign ( and any fax of that copy I may send to Lender ) will be an original. However, the electronic signature of another party to this Credit Agreement and the Lenders electronic record of this document containing that signature will be as valid against me as an original, physical document that is physically signed by all parties.

18. If applicable for my loan program, the Cosigner may be released from all obligations hereunder if ( a ) the Lender ( or its agent ) receives full payment for each of the first 48 consecutive principal and interest payments on or before their respective due dates under this Credit Agreement, ( b ) the Cosigner makes a request for such release to the Lender ( or its agent ) within ninety ( 90 ) days of making the 48th such payment, and ( c ) the Borrower meets the Lender 's and TERI 's credit criteria then in effect for cosigner release under this Credit Agreement.

M. DISCLOSURE NOTICES ALL APPLICANTS : IMPORTANT FEDERAL LAW NOTICE Important information about procedures for opening a new account : To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for you : When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your drivers license or other identifying documents.

Company response to consumer: Closed with explanation