Consumer complaint received 2025-07-09 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: OK

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
XXXX, XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX. XXXX XXXX XXXX, XXXX XXXX Re : Request for Removal of Derogatory Credit Reporting Due to Misleading Communication Dear XXXX Credit Reporting Department : I hope this letter finds you well. I am writing to formally request that XXXX remove the XXXX late payment notations from my credit reports regarding several of my federal student loans under my master account number XXXX. 
Background and Facts In XX/XX/XXXX, I received an email from XXXX related to my federal student loans. The email listed my master account number at the top and stated : Your first expected payment : {$88.00} on XX/XX/XXXX. 

Nowhere did the email explain that this payment date applied solely to one specific loan group. The email made no reference to individual loan groups, the email listed only my master account number, and no disclaimers were included to indicate that the payment date might not apply to my entire account. Thus, the plain reading of this official communication led me to reasonably believe that no payments were due on any of my federal loans until XX/XX/XXXX, an interpretation one of your supervisors, your agent, agreed with in a phone call I recorded. 
However, it turns out that XXXX of my XXXX loans had payment due dates earlier than XXXX and became delinquent in fall XXXX, ultimately being reported as 90 days late in XX/XX/XXXX. The XXXX loan, consistent with the email, was not reported as 90 days late. Based on the emails language and format, I genuinely believed all my loans were deferred until XXXX, so I did not make payments on the XXXX loans that turned out to be due earlier. 

A XXXX representative with whom I spoke at length in XXXX explicitly acknowledged in a recorded phone call that the email I received was confusing and misleading. I have since brought all loans current. 
Legal XXXX and XXXX Obligations XXXX federal law and regulations, federal student loan servicers like XXXX are legally obligated to communicate with borrowers clearly, accurately, and in a manner that avoids misleading or deceptive practices. 

Higher Education Act ( HEA ) Requirements The Higher Education Act of 1965 requires student loan servicers to provide borrowers with repayment schedules and first-payment due dates in simple and understandable terms ( Higher Education Act of 1965, 20 U.S.C. 1083 ). Implementing regulations similarly require that this information be timely, accurate, and clear enough for borrowers to make informed decisions ( 34 C.F.R. 682.205, 2024 ).

Department of Education Servicing Standards Additionally, the Department of Education ( ED ) has established standards requiring loan servicers to communicate in a manner that is clear, transparent, and not misleading. In 2015, ED, the Consumer Financial Protection Bureau ( CFPB ), and the U.S. Department of the Treasury jointly issued principles calling for consistent, accurate, and actionable servicing communications, emphasizing that information about loan terms and repayment options should be presented in a way that best informs borrowers [ and ] mitigates the risk and costs of default ( U.S. Department of Education, 2015 ).

Further, in 2016, the Department of Education issued policy direction establishing baseline standards emphasizing adequate and timely communications to borrowers. ED instructed that : [ b ] orrowers can expect to receive adequate and timely communications related to all servicing functions ( U.S. Department of Education, 2016, p. 2 ).

Servicers are expected to use plain-language, user-tested notices and ensure that all routine communicationssuch as billing statements and due date noticesare clear and consistent for every borrower ( U.S. Department of Education , 2016 ) .

Moreover, it is well established under federal law that misleading or confusing communications by a loan servicer can constitute an unfair or deceptive act or practice ( UDAP ) or an unfair, deceptive, or abusive act or practice ( UDAAP ). Section 5 of the Federal Trade Commission Act prohibits unfair or deceptive acts or practices in commerce, which encompasses loan servicing activities ( 15 U.S.C. 45 ). Likewise, the Consumer Financial Protection Act grants the Consumer Financial Protection Bureau ( CFPB ) authority to prohibit unfair, deceptive, or abusive acts or practices in connection with consumer financial products and services ( 12 U.S.C. 5531, 5536 ).

The CFPB has explicitly warned student loan servicers that providing inaccurate, misleading, or incomplete information to borrowers violates federal consumer financial protection laws ( CFPB, 2022 ). As stated in a CFPB compliance bulletin : When servicers fail to provide accurate and complete information, they mislead borrowers, potentially causing serious harm such as missed opportunities for debt cancellation or other relief. ( CFPB, 2022 ) Additionally, CFPB Director Rohit Chopra has underscored that illegal conduct by servicers can be ruinous for borrowers ( CFPB, 2022 ).

Enforcement actions confirm this legal standard. For instance, the CFPB took action against EdFinancial Services in 2022 for misleading borrowers about Public Service Loan Forgiveness eligibilityan action deemed a violation of UDAAP prohibitions because the servicer provided false or incomplete information ( CFPB, 2022 ). Similarly, the Federal Trade Commission has brought cases against loan servicers for deceptive practices under Section 5 of the FTC Act, including for providing incorrect payoff quotes and misleading payment information that led to consumer harm such as extra charges and credit reporting issues ( FTC XXXX Avant, XXXX ). 

These regulatory actions and legal standards make clear that servicers like XXXX are required to provide accurate, complete, and truthful information to borrowers. Misleading or incomplete communications are not merely poor customer servicethey are potentially unlawful acts under federal law ( 15 U.S.C. 45 ; 12 U.S.C. 5531, 5536 ; CFPB, 2022 ). Thus, any inaccurate, contradictory, or incomplete information you have provided in relation to my account or credit reporting is not only a factual error but may also constitute a violation of federal consumer protection laws. 

Application to XXXX XXXX XXXX XX/XX/XXXX email appears to violate these standards because it failed to clarify that the XX/XX/XXXX due date applied only to a single loan group, leaving the rest of my loans subject to earlier due dates. Even your own representative admitted the email was confusing in a recorded phone call and took approximately 8 minutes of research on your internal systems ( which I have no access to ) in order to understand what had happened with my account. Such a lapse goes beyond mere customer serviceit implicates legal obligations imposed on servicers under federal student loan laws and regulations.

My Request and Potential Next Steps Given that the delinquencies on my 15 loans arose directly from Nelnets misleading communication, I believe it is both legally and equitably appropriate for XXXX to : 1. Remove all XXXX late payment notations for the loans reported delinquent in XX/XX/XXXX from my credit reports with Equifax, Experian, and TransUnion ; XXXX XXXX. Apply a retroactive administrative forbearance for the period of XX/XX/XXXX through XX/XX/XXXX, thereby eliminating any negative credit impact. 
I am committed to resolving this matter amicably and without further escalation. However, if XXXX is unwilling to voluntarily correct my credit reports, I reserve all rights to pursue further actions, including : Filing additional complaints with the CFPB and the U.S. Department of Educations Federal Student Aid Ombudsman ; Exploring claims for unfair or deceptive practices under federal and state consumer protection laws ; Seeking legal remedies for damages caused by misleading communication and subsequent credit harm. 

I would appreciate your written confirmation by XX/XX/XXXX that XXXX will take corrective action. 
Thank you for your attention to this matter. 
Sincerely, XXXX XXXX XXXX, XXXX.

Company response to consumer: Closed with non-monetary relief