Consumer complaint received 2025-09-06 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: EQUIFAX, INC.
State: TX

Complaint narrative:
I am submitting this complaint which is in reference to the complaint filed via certified mail ( XXXX ) to which I have recieved repeated requests for more information. This complaint is regarding XXXX, a federal student loan servicer, for practices that appear deceptive, harmful to consumers, and potentially in violation of the Texas Deceptive Trade Practices Act ( DTPA ). While this complaint describes my individual case, it reflects a broader pattern of misconduct by XXXX that has already been the subject of litigation, Senate nvestigations, and actions by Attorneys General. Issues such as misapplication of payments, faulty forgiveness notices, and misrepresentation of consolidation requirements have been repeatedly documented nationwide. 
This complaint can not be construed as liability for any alleged debt. In XXXX, XXXX XXXX XXXX a XXXX XXXX XXXX XXXX ( XXXX ) XXXX was {$88000.00}, placed on a standard XXXX year repayment term. As my credit report reflects, I made payments for 20 years until XXXX forbearance started. In XX/XX/XXXX, the midst of the COVID student loan forbearance period XXXX sent out an email communication luring people into a Direct Loan consolidation scheme claiming that it was required to qualify for a " One Time Account Adjustment '' initiative. encouraging me to consolidate my loans to be eligible for a one-time account adjustment. Later, XXXX sent a letter stating that the promised adjustment was blocked in court. As a result, instead of receiving forgiveness or an adjustment, I was left with a new consolidation loan with new terms and a higher balance without any Master Promissory Note ever being executed. Reporting this as a valid, enforceable loan is deceptive and misleading. communication states I want to stated boldly, at this time, that any application that was filled out to consolidate a private loan into a Direct Loan, changing terms or altering defenses was done so in response to the attached email, under the direction of the agent or by the agent ( it is unclear by looking at the application ), and for the sole purpose of being granted forgiveness for the resulting Direct loan under the " One Time Adjustment initiative '' discussed in the email. Accordingly, any purported contract or signature that XXXX may produce would be fatally defective, as consent was obtained under material misrepresentation. 

At this time XXXX 's position is that I have a Direct Loan Consolidation obligation in amounts over {$140000.00} and growing at a rate of {$21.00} per day, despite 20 years of payments on a loan that started as {$88000.00}. XXXX has ignored repeated requests for documents that would substantiate this claim, including but not limited to my request for all XXXX 's, transfer documents and account level accounting. Therefore, both the consolidations validity is in question due to misinformation and lacking documentation, but also the balance asserted is mathematically impossible under standard FFEL amortization rules and remains entirely unsubstantiated. Although the documents that I have seen appear to lack legal requirements for enforcement, XXXX charges forward with default although I have raised many concerns along the way. I am being told that the initiative which is foundational to the situation ( the one time account adjustment initiative ) was blocked in court. The result is that I was lured into situation where I am being held liable for a higher balance, and another 360 month term with a payment that would predominantly go to interest under false pretenses leaving me far worse off. 

Due to XXXX 's actions, I am now : Being reported with a derogatory trade-line during an active, un- resolved dispute.

Being subjected to continued financial harm from what appears to be a misapplied or manipulated account history Being defaulted on a reset loan balance inconsistent with over two decades of timely payments because the are attempting to enforce a what appears to be faulty consolidation application with no XXXX. 

I have also submitted complaints to the Department of Education asking for escalation to the Ombudsman Group, and the Texas Attorney Generalregarding this same matter. Both complaints remain pending at this time. * If more documentation is required please let me know. I will be happy to supply it.

Company response to consumer: Closed with explanation