Consumer complaint received 2025-03-07 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: AES/PHEAA
State: AL

Complaint narrative:
Complaint Against XXXX XXXX XXXX XXXX XXXX and American Education Services for Illegal Debt Collection and Lack of Ownership Transparency To : Consumer Financial Protection Bureau ( CFPB ) Online Portal Subject : Illegal Debt Collection, Failure to Provide Proof of Loan Ownership, and Violations of Federal Consumer Protection Laws Background I am filing this complaint against XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) and American Education Services ( AES ) for engaging in unlawful debt collection practices, including their failure to validate ownership of my loan, continued collection without proving standing, and violations of my rights under federal consumer protection laws. 

I originally took out a student loan that was allegedly held by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX However, at some point, the loan was transferred or sold, and I was subsequently notified that American Education Services ( AES ) was the new servicer. Since then, I have faced the following unlawful practices : 1. Failure to Validate Loan Ownership Neither XXXX nor AES has provided a legally sufficient chain of title proving who currently owns my debt, despite multiple requests. 
2. Continued Collection Without Proof AES continues to collect payments without verifying its legal right to do so, which constitutes an unfair and deceptive practice. 
3. Inability to Contact a Valid Loan Holder No entity has responded to my requests for clarification regarding my debt, which raises concerns about compliance with consumer protection laws.

4. Potentially Time-Barred Debt The loan in question may be outside the statute of limitations for collection, yet AES and XXXX continue to demand payment without verification. 

Legal Violations The actions of XXXX and AES violate multiple consumer protection statutes, including : Fair Debt Collection Practices Act ( FDCPA ) ( 15 U.S.C. 1692g ) : Under this law, a debt collector must cease collection activities unless and until they provide proof of the debt upon request. AES has failed to validate ownership and continues to collect, which violates this statute. 
Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681s-2 ( a ) ) : If XXXX is reporting this debt to credit bureaus without confirming its accuracy, this is a violation of FCRAs requirement for furnishers to report accurate and verifiable information. 
Consumer Financial Protection Act ( CFPA ) ( 12 U.S.C. 5536 ( a ) ( 1 ) ) : The CFPA prohibits deceptive and unfair acts in financial transactions. AESs refusal to verify ownership and continued collection on an unverified loan constitutes an unfair and deceptive act.

Truth in Lending Act ( TILA ) ( 15 U.S.C. 1601 et seq. ) : TILA requires creditors to provide clear disclosures regarding loans, including who owns the loan. The failure to disclose ownership or respond to verification requests violates this law. 

Relief Sought Given these clear violations of federal law, I am requesting the following actions from the CFPB : 1. Immediate cessation of all collection activities until ownership of the debt is verified and proof is provided to me in writing. 
XXXX. A full investigation into XXXX and AESs practices, specifically their failure to provide consumers with loan ownership details. 
XXXX. Correction of any inaccurate credit reporting related to this debt. 
XXXX. A full accounting of payments made and clear documentation of any remaining balance. 
XXXX. Potential penalties against the entities involved for their deceptive and unlawful collection practices. 

Conclusion The XXXX XXXX XXXX XXXX XXXX and American Education Services are engaging in illegal debt collection practices by failing to verify the ownership of my loan while continuing to demand payments. Their actions violate multiple federal laws, and I respectfully request the CFPB take immediate enforcement action. 

Thank you for your time and attention to this matter.

Company response to consumer: Closed with explanation