Consumer complaint received 2025-01-07 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account information incorrect
Company: Nelnet, Inc.
State: NY

Complaint narrative:
Subject : Dispute of Unauthorized Loan Consolidation and Request for Proof of Contract Dear Nelnet, I am writing to formally dispute the consolidation of my student loans and to request immediate verification and documentation regarding the loan servicing agreement and any contracts associated with the consolidation.

To clarify, I never requested or authorized the consolidation of my student loans, nor did I consent to any such action. Upon reviewing my loan account, I noticed the consolidation was made without my approval or knowledge, and I did not sign any documents that would legally bind me to such an agreement.

Specifically, I request the following : 1. Proof of Contract : Provide a copy of the signed agreement or authorization form that I allegedly agreed to in relation to the loan consolidation.

2. Loan Consolidation Documentation : Supply any documents detailing the terms and conditions of the loan consolidation, including any notices, agreements, or authorizations indicating that I consented to the consolidation.

3. Verification of Loan Consolidation : Provide clear evidence and records showing when and how the consolidation was executed, including the date of the action and any notices sent to me regarding the change in loan status.

4. Account History and Balance : Provide a complete breakdown of my loan balance, showing how the original loans were consolidated and how the new balance was calculated. Please ensure that all transactions, interest, and fees are accurately reflected.

Given that I did not authorize this consolidation and have not received proof of my agreement to it, I believe the current status of my loan is incorrect and should be investigated and corrected.

Relevant Laws and Violations This dispute is based on violations of the following laws, which ensure that loans are serviced and handled correctly, and that consumers are protected from unauthorized actions : 1. The Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681 et seq. ) : Under the FCRA, creditors and servicers are required to report accurate information to credit bureaus. If there are inaccuracies on your credit report resulting from u
nauthorized loan consolidation, you have the right to dispute these errors. The FCRA also mandates that servicers investigate disputes and provide the requested documentation in a timely manner ( usually within 30 days ).

2. The Higher Education Act ( HEA ) ( 20 U.S.C. 1071 et seq. ) : The HEA outlines the rules for federal student loan servicing and consolidation. Loan consolidation must be authorized by the borrower, and servicers are required to provide proper disclosures and documentation regarding any changes to loan status. Unauthorized consolidation is a violation of the borrowers rights under this act.

3. The Fair Debt Collection Practices Act ( FDCPA ) ( 15 U.S.C. 1692 et seq. ) : The FDCPA protects consumers from unfair, deceptive, or abusive practices by debt collectors. If the loan consolidation is being handled by a debt collection agency or servicer acting as a third party, they are required to adhere to certain standards when communicating and collecting debts. Unauthorized consolidation or failure to provide proper documentation could be a violation of this law.

4. The Truth in Lending Act ( TILA ) ( 15 U.S.C. 1601 et seq. ) : TILA requires lenders to clearly disclose the terms and conditions of loans, including any consolidation agreements. If your loan was consolidated without your consent, the servicer may have violated TILA by failing to provide the required disclosures before proceeding with the consolidation.

5. Regulation Z ( 12 CFR Part 1026 ) : Under Regulation Z, which implements the Truth in Lending Act ( TILA ), lenders and servicers must clearly disclose all loan terms, including those related to consolidation. If these disclosures were not provided, it may constitute a violation of this regulation.

6. The Consumer Financial Protection Bureau ( CFPB ) : If you are unable to resolve this matter directly with your servicer, you may file a complaint with the CFPB, which enforces consumer protections related to debt collection, loan servicing, and other financial matters.

Given that I did not authorize this consolidation and have not received proof of my agreement to it, I believe the current status of my loan is incorrect and should be investigated and corrected.

Please treat this request as a formal dispute under the FCRA, HEA, FDCPA, and TILA, which require that loan servicers maintain accurate records and provide proper documentation of loan servicing actions. I expect to receive all requested documentation within 30 days from the date of this letter, in compliance with applicable laws.

If you are unable to provide the requested proof, I ask that you reverse the consolidation and restore the original terms of the loans immediately. Should I not receive a satisfactory response, I will consider escalating this matter through regulatory channels, such as the CFPB and the Department of Education. 

Please respond to this dispute at your earliest convenience and provide the necessary documentation. 

Thank you for your prompt attention to this matter. 

Sincerely, XXXX : XXXX

Company response to consumer: Closed with explanation