Consumer complaint received 2025-03-26 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: Nelnet, Inc.
State: KY

Complaint narrative:
I am writing to formally dispute an issue regarding a third party obtaining access to my student loan information and attempting to collect debt without my consent. I have recently become aware that [ NELNET a third party ] has been contacting me about my student loan and attempting to collect on behalf of [ the official loan servicer is The Department of Education, ] without proper authorization. 

I understand that the Federal Family Educational Rights and Privacy Act ( FERPA ) and the Privacy Act of 1974 protect my right to privacy concerning my educational and financial records. Under these laws, you are required to maintain confidentiality and are prohibited from releasing my loan information to any third party without my express written consent. The unauthorized disclosure of my loan information is, therefore, a direct violation of these privacy protections. Please provide my ( WET INK SIGNATURE ) written consent that show that I authorize a third party to have my personal information. 

Additionally, under the Fair Debt Collection Practices Act ( FDCPA ), a third-party collector must not engage in debt collection practices without having a proper legal basis for doing so. The FDCPA specifically prohibits third-party debt collectors from using false or misleading information, harassing debtors, or attempting to collect debts without proper documentation that proves they are legally entitled to collect on a loan. 

Furthermore, I have not given [ third-party NELNET ] written consent to access my loan information or engage in any collection activities on my behalf. Their actions are therefore in violation of the law and represent a breach of my rights as a borrower. Nelnet is a third-party service provider that works with the U.S. Department of Education . ( Nelnet handles a variety of tasks related to federal student loans, including loan servicing, payment processing, and assisting borrowers with managing their student loans. They serve as one of the companies that helps the Department of Education manage federal student loan accounts. ) I demand the following 1. An immediate investigation into how [ NELNET ] was able to access my student loan information and a complete explanation of how this breach of confidentiality occurred. 

2. A halt to any communication from NELNET regarding my student loan, including any debt collection attempts. 
3. Written confirmation that my student loan information will no longer be shared with any third party without my explicit consent. 

4. A formal apology from your office acknowledging the violation of my rights and a statement on how you will prevent future breaches of privacy. 
I request the cancellation of all student loans due to the presence of third-party involvement from Nelnet, which holds information that includes a wet ink signature. The existence of this signature raises concerns regarding the authenticity, accuracy, and legal standing of the loan agreements, potentially invalidating the current terms and conditions. Given these uncertainties, I believe that it is in the best interest of both borrowers and the financial institutions involved to cancel the loans and re-evaluate their legitimacy. This would ensure fairness, transparency, and accountability in the loan process, providing relief to borrowers who are currently burdened by potentially flawed agreements.l also I have attached information of them admitting that they are a third party Please confirm that these matters are being addressed within 30 days of the receipt of this letter. Failure to resolve this issue may result in further action, including but not limited to filing a formal complaint with the U.S. Department of Education, the Consumer Financial Protection Bureau ( CFPB ), and taking legal action as necessary. 

Thank you for your prompt attention to this matter. I look forward to your timely resolution.

Company response to consumer: Closed with explanation