Consumer complaint received 2023-08-21 00:00:00
Product: Debt collection — Private student loan debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: ZuntaFi Corp
State: MN

Complaint narrative:
I am reaching out to the Consumer Financial Protection Bureau ( CFPB ) regarding a private student loan held by the servicer ZuntaFi from XXXXXXXX XXXX XXXX. This private student loan was part of a XXXX  XXXX discharge in XXXX, however ZuntaFi has ignored my bankruptcy discharge paperwork and continued collecting. 

In a XX/XX/XXXX press release by the CFPB, a bulletin was announced regarding the unlawful collection of private student loans that were discharged through bankruptcy. This complaint is in response to the bulletin release. I am requesting assistance from the CFPB to intervene with this private student loan and enforce federal bankruptcy laws as stated in the recent bulletin. In support of this, I will state the following facts. 

In XXXX I attended a for-profit college called XXXX XXXX XXXX XXXX XXXX XXXX XXXX the trade school XXXX at the time ). The school did not have appropriate accreditation and was clearly purposely misleading students. I did not graduate. 

In XXXX, I filed bankruptcy with the intent to discharge the private student loan connected with XXXX XXXX. Discharge paperwork was sent the same year to ZuntaFi, who was doing business as Student Loan Finance Corporation ( SLFC ) at the time. This is seen and highlighted in the documents label exhibits I-3. 

Because the bankruptcy was in XXXX, before the XXXX bankruptcy rule changes, the private student loan should have been discharged outright by XXXX standards alone. However, they ignored the discharge order for nearly 20 years. The following are further reasons this private student loan should have been XXXX. 

First, contrary to ZuntaFis claim in the lawsuit against me, the private student loan was for noneducational purposes. When seeking advice from XXXX XXXX financial aid office, I was advised it is used for outside the school to pay bills and other general expenses unrelated to school. In support of this statement, the promissory note was not certified by the school. 

Second, the private loan grossly exceeded the cost of attendance. In fact, ZuntaFi serviced a separate federal loan used to pay the actual tuition, until they sold it to ACS. This is supported by the document labeled exhibit K. Exhibit C in the case against me also clearly shows the whole loan was distributed directly to me in one semester. It is well known that a college semester is between the months of early XXXX to the end of XXXX. All this funding was dispersed in one semester and well exceeding the actual cost of college. 

Third, the school didnt certify me as attending more than half-time when the loan was given. This can once again be seen in the promissory note. Further evidence that the loan was to be discharged. 

This is a direct-to-consumer private student loan ( see exhibit C information above ). This is even stated in their lawsuit against me when they explicitly mention in the memorandum that the Plaintiffs [ ZuntaFi ] predecessor agreed to lend a sum of money to Defendant [ myself ]. No mention of providing it to the school was made in the lawsuit. 

No non-profit organization is connected to this loan. The school was a for-profit college. The originator of the loan was a for-profit bank called XXXX XXXX  XXXX who immediately sold it to ZuntaFi, also a for-profit organization. This is shown in exhibit G where XXXX XXXX  sold the loan to ZuntaFi ( then XXXX SLFC ) less than ten days after the origination date. 

All said, the private student loan should have been discharged in XXXX. Even by todays more stricter standards, they should have been discharged. ZuntaFi has been violating federal law by collecting on this debt. 

I am providing the bankruptcy court servicing paperwork ( exhibit XXXX to XXXX ) clearly showing ZuntaFithen doing business as SLFCwas served with the discharge notice in XXXX. I am including exhibit C from the lawsuit against me showing it was provided directly to me in one semester and along with exhibit G it was originated by XXXX XXXX. I am also including exhibit K showing ZuntaFi, highlighted as SLFC, had the serviced federal loans used for the tuition. 

Overall, I am asking the CFPB to intervene in what is clearly unlawful activity by ZuntaFi and stop all collection action against me. With the new information from the CFPB bulletin regarding private student loans and bankruptcy, it is clear ZuntaFi is illegally collecting on this private student loan.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief