I have had XXXX issues with my federal law school lender ECMC/XXXX. I am not alone, it is a potential class action lawsuit because many borrowers have had the same experience with ECMC.
In 2007, I was laid off and defaulted on my federal loans. I contacted XXXX to rehabilitate my loans. They promised if I made XXXX on-time payments they would place my loans with a new lender and rehabilitate them. I made the payments but the financial crisis happened and XXXX breached its agreement because they could not find lenders to buy student loans. So they did’t rehabilitate my loans and just disappeared.
Eventually, maybe 18 months later, XXXX was bought by ECMC. ECMC added tons of collections fees to my loans and refused to honor the rehabilitation deal with XXXX. Debt collectors harassed me despite my written complaints and ECMC refused to provide me with my/XXXX XXXX and a breakdown of my debt/fees.
ECMC garnished my wages without notice, garnished an impermissible amount ( XXXX % ) and then denied me arbitration.
Internet message boards show many consumers with these same complaints against XXXX/ECMC.
The ECMC Ombudsman was nice but ultimately could n’t help me and ECMC issued notice that either I agree to their amount and pay, or not pay and remain in default. There is no option to pay while I continue to dispute the fees. If I make a payment to them I am agreeing to an additional $ XXXX in fees!!!! My loan was for $ XXXX and now ECMC claims it is $ XXXX with fees! I am trapped.
ECMC responded to me that Federal student loan issues fall outside the CFPB protections because of a recent lower court case.
The Dept of Ed Ombudsman will only verify the amount owed ( although they did find errors and made a reduction ), they will not help with substantive disputes.
I offered to negotiate to pay a settlement to resolve this but ECMC wants me to pay them $ XXXX! I only borrowed $ XXXX!! have you ever heard of a settlement for 20 % more than the amount borrowed?!?!
I have hundreds of pages of documentation/correspondence to verify the above.