Consumer complaint received 2026-06-01 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Law Offices of Timothy M. Sullivan
State: CA

Complaint narrative:
We sent a formal, written dispute letter via Certified Mail requesting an itemized ledger and a written explanation for a {$63000.00} administrative fee that was added to our original {$210000.00} XXXX loan. We also requested formal confirmation and verification of the original creditor and account history, including how our 8 months of consecutive payments to the XXXX were being credited. " ACCOUNT ACCOUNTING AUDIT DISPUTE & SYSTEM ERROR CLARIFICATION This complaint is filed under the category of " Debt was paid '' because the consumer successfully paid 8 consecutive monthly installment payments directly to the original creditor, which are currently uncredited and ignored by the collection agency, resulting in an entirely incorrect balance. 1. BACKGROUND & MEDICAL HARDSHIP The consumer holds a federal XXXX XXXX XXXX loan with a principal balance of {$210000.00}. My business is a small operation, and while the loan and business are in my name, my husband works directly alongside me. He is vital to our daily operations and our ability to generate revenue. Unfortunately, last year, my husband suffered a severe medical crisis that required XXXX XXXX and the implantation of a XXXX. Because of his XXXX, XXXX, and necessary recovery period, our business operations were severely impacted. We were unable to generate profit during this time, which forced us to temporarily pause our loan payments for a period of time. 2. CONTINUOUS COMPLIANCE AND PAYMENT TIMELINE Immediately upon recovering and resuming work, I have proactively took action to bring the loan into compliance. XX/XX/XXXX through XX/XX/XXXX : I have successfully established and maintained automatic monthly payments directly to the XXXX through the XXXX online portal, completing 6 consecutive monthly payments. XX/XX/XXXX : I have made 1 additional consecutive manual payments over the phone directly to the XXXX. Total Prior Compliance : I have successfully made 8 consecutive monthly payments to the XXXX following the hospitalization. 3. ADMINISTRATIVE TIMELINE ERROR In XX/XX/XXXX and XX/XX/XXXX, I haveattempted to make my regular monthly payments, but the XXXX portal blocked the transactions. The XXXX informed me that the file was closed as " XXXX Uncollectible '' and was transferred to Treasury XXXX. Upon contacting the U.S. Treasury, I was directed to their assigned private collection agency, XXXX XXXX XXXX XXXX XXXX ( XXXX ). 4. VIOLATION AND FAILURE TO VALIDATE BY XXXX XXXX XXXX In XX/XX/XXXX, I have proactively sent formal emails and a written dispute letter via Certified Mail to XXXX XXXX XXXX requesting an itemized accounting ledger and disputing a 30 % administrative collection fee totaling approximately {$63000.00}. XXXX XXXX XXXX has completely ignored this written dispute, refused to provide an itemized financial ledger, and failed to respond to letters or emails. When contacted via telephone, XXXX representatives refuse to acknowledge or credit the 8 months of successful payments made directly to the XXXX, and verbally demand immediate lump-sum payment of the inflated balance.

Company response to consumer: Closed with explanation