Consumer complaint received 2025-03-19 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Report provided to employer without your written authorization
Company: Servicer under contract with Federal Student Aid
State: TX

Complaint narrative:
Subject : Formal Complaint Regarding Student Loan Wage Garnishment and Unauthorized Collections Activity Dear CFPB Representative, I am writing to formally dispute and request an investigation into the student loan account ( s ) appearing on my credit report. I have been subjected to predatory lending practices, unauthorized wage garnishment, and improper third-party collections that have severely impacted my financial well-being.

1. Unlawful Wage Garnishment ( XXXX XXXX ) In XXXX, my wages were garnished without proper due process by a third-party collector claiming to be acting on behalf of the Department of Education ( DOE ). At no point was I given the opportunity to dispute the debt, establish a repayment plan, or receive proper legal notice of the garnishment. The collector obtained my employment details without my authorization, leading to improper access to my financial information and unlawful deductions from my paycheck. 

This garnishment continued until the COVID-19 student loan pause was enacted in XXXX. Given the legal scrutiny around student loan servicers practices, I request a thorough review of this garnishments legality, as well as reimbursement for the funds improperly taken from my wages.

2. Unauthorized Access and Predatory Collection Practices The collections agency that pursued this debt engaged in deceptive and coercive tactics. Specifically, they : Obtained my employment information without my authorization, raising concerns about privacy violations.

Misrepresented their authority, implying that I had no right to challenge the debt.

Failed to provide validation of the debt, violating my rights under the Fair Debt Collection Practices Act ( FDCPA ).

Given the recent regulatory violations and settlements involving student loan servicers, I urge the CFPB to investigate whether this collector acted in violation of federal law.

3. FERPA Violations and Data Privacy Concerns Recent disclosures regarding XXXX XXXX unauthorized access to FERPA-protected student loan borrower data have raised major concerns about systemic breaches of borrower privacy. If unauthorized parties were able to access borrower records, this suggests that my financial data could have been improperly shared or exposed, further calling into question the validity of this debt. 

Requested Actions I request that the CFPB : Investigate the wage garnishment that occurred prior to XXXX to determine if it was conducted legally and fairly. 
Verify whether my student loan debt was properly assigned and collected.

Order the removal of this loan from my credit report if violations are confirmed.

Ensure proper enforcement of data privacy protections to prevent unauthorized access to student borrower information.

I appreciate your attention to this serious matter and look forward to your response. Please provide updates regarding the status of this complaint and any corrective actions that may be taken.

Company response to consumer: Untimely response