Consumer complaint received 2025-03-26 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Maximus Federal Services, Inc.
State: SC

Complaint narrative:
XX/XX/XXXX Subject : Final Notice of Noncompliance with Cease & Desist, Demand to XXXX XXXX  Account, and Restitution of All Interest Paid To Whom It May Concern, This letter serves as a formal notice of Aidvantages continued violations of federal law, including but not limited to, the Truth in Lending Act ( 15 U.S.C. 1601 et seq. ), the Fair Credit Billing Act ( 15 U.S.C. 1666b ), the Fair Debt Collection Practices Act ( 15 U.S.C. 1692 et seq. ), the Family Educational Rights and Privacy Act ( 20 U.S.C. 1232g ( b ) ), and the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), arising from your failure to cease all communication and collection attempts regarding an alleged debt for which Aidvantage is not the original creditor or holder in due course. 

1. Failure to Provide Verification of Debt Upon written request, the alleged servicer must provide the original promissory note with all wet-ink endorsements and assignments in compliance with the Uniform Commercial Code ( UCC ) Article 3. Aidvantage has failed to produce such verification and, as such, has no lawful standing to report, collect, or otherwise engage in any enforcement action against me. 

2. Failure to Comply with Cease & Desist Order Pursuant to the Fair Debt Collection Practices Act ( FDCPA ), Aidvantage has been explicitly instructed in writing to cease all communications regarding this matter. Any further attempt to contact me, report adverse information, or collect on this unverified account constitutes continued willful noncompliance and harassment under federal law and is subject to legal recourse. 

3. Failure to Report Account as Disputed & Unlawful Credit Reporting Under 15 U.S.C. 1666b, Aidvantage was required to report this account as disputed while under review. Instead, you falsely and maliciously reported it as late, causing irreparable harm. Any negative reporting while an account remains in dispute constitutes a willful violation of the Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681s-2 ( b ) ), opening the door for substantial legal liability. 

4. FERPA Violations and Unauthorized Disclosure of Non-Public Information Under 20 U.S.C. 1232g ( b ), financial records linked to educational loans fall under the protection of FERPA. Any transfer, servicing, or assignment of this alleged account without my explicit consent constitutes a breach of privacy rights under federal law. 

5. Securities Fraud & Unlawful Securitization If this alleged debt has been securitized and transferred through financial instruments without full disclosure and proper accounting under the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), Aidvantage is then complicit in an unlawful scheme to deceptively trade student loan instruments in violation of SEC regulations. 

Demand for Immediate Corrective Action In light of the above statutory violations, fraudulent misrepresentations, and failure to lawfully validate the alleged debt, I hereby demand the following corrective actions be completed within fifteen ( 15 ) calendar days of receipt of this notice : 1. Immediate discharge and XXXX XXXX  of the account due to failure to produce the original promissory note and lack of standing to collect. 

2. Complete removal of all adverse credit reporting related to this disputed account across all credit bureaus. 

3. Refund and restitution of all interest paid on the alleged debt, as it was collected under fraudulent pretenses without full disclosure and lawful standing. 

4. Written confirmation of compliance with the above demands to be sent via certified mail. 

Failure to comply within the stated time frame will result in immediate escalation, including formal complaints to the Consumer Financial Protection Bureau ( CFPB ), Federal Trade Commission ( FTC ), Securities and Exchange Commission ( SEC ), and initiation of civil litigation for damages, statutory penalties, and injunctive relief. 

This letter serves as legal notice under federal law. Any further adverse action taken against me without full compliance will be deemed an intentional violation of my rights and will be met with the appropriate legal response. 

This matter is time-sensitive. Govern yourselves accordingly. 


Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation