Background Staff Sergeant [redacted] became an AAFMAA member in November, As an AAFMAA member on active duty with the military, she was eligible for the Career Assistance Program This program allowed for a loan of $5,at a 1.5% interest rate Monthly loan payments were established via government allotment scheduled over a four year repayment schedule The CAP Loan was funded January once the allotment started for the scheduled monthly payment of $ Payments continued for the loan through December In January the scheduled monthly payments stoppedBilling notices by [redacted] and email were delivered explaining payments due and impact if not paid On February 2015, AAFMAA agreed to lower the monthly CAP loan payment to $per month in lieu of the $per month with an established recurring payment plan AAFMAA did not change the terms of the Loan, charge any late fees or increase the interest rate above 1.5% AAFMAA accepted one $loan payment for the January payment due in February Acknowledgement of payment reporting outstanding balance of $2,was mailed by [redacted] on February Without follow through of the payment plan, communications were sent by email and [redacted] of the CAP loan default and reported the balance due of $2,(balance from February plus accrued interest to date) From February to April AAFMAA had not received an established payment method for the CAP LoanThe account was marked as a default and forwarded to [redacted] , which is the company that assists AAFMAA with collecting delinquent debts At that point [redacted] contacted another agency, [redacted] , to assist them in [redacted] to collect the debt owed Specific issue Staff Sergeant [redacted] complaint concerned an extra $interest charge that was added by the collection agency to her defaulted loan balance of $2, This made the total outstanding balance $2, The concern stated is correct, no interest charges or fees should have been added to the account AAFMAA’s primary collection agency, [redacted] , forwarded this account to [redacted] ***in [redacted] for collection (The consumer referred to the company as [redacted] ***in her complaint.) [redacted] ***added the $to the account in errorThe $has since been removed from the outstanding balance We have been advised that a recurring payment plan to pay off the loan has been establishedAt this point in time, neither AAFMAA nor [redacted] ***has forwarded the account to the three credit bureaus If Staff Sergeant [redacted] understands differently, we need to be provided a copy of reports stating otherwise Attached is the letter that we have sent back to the SSG [redacted] , which explains the circumstances
Background Staff Sergeant [redacted] became an AAFMAA member in November, As an AAFMAA member on active duty with the military, she was eligible for the Career Assistance Program This program allowed for a loan of $5,at a 1.5% interest rate Monthly loan payments were established via government allotment scheduled over a four year repayment schedule The CAP Loan was funded January once the allotment started for the scheduled monthly payment of $ Payments continued for the loan through December In January the scheduled monthly payments stoppedBilling notices by [redacted] and email were delivered explaining payments due and impact if not paid On February 2015, AAFMAA agreed to lower the monthly CAP loan payment to $per month in lieu of the $per month with an established recurring payment plan AAFMAA did not change the terms of the Loan, charge any late fees or increase the interest rate above 1.5% AAFMAA accepted one $loan payment for the January payment due in February Acknowledgement of payment reporting outstanding balance of $2,was mailed by [redacted] on February Without follow through of the payment plan, communications were sent by email and [redacted] of the CAP loan default and reported the balance due of $2,(balance from February plus accrued interest to date) From February to April AAFMAA had not received an established payment method for the CAP LoanThe account was marked as a default and forwarded to [redacted] , which is the company that assists AAFMAA with collecting delinquent debts At that point [redacted] contacted another agency, [redacted] , to assist them in [redacted] to collect the debt owed Specific issue Staff Sergeant [redacted] complaint concerned an extra $interest charge that was added by the collection agency to her defaulted loan balance of $2, This made the total outstanding balance $2, The concern stated is correct, no interest charges or fees should have been added to the account AAFMAA’s primary collection agency, [redacted] , forwarded this account to [redacted] ***in [redacted] for collection (The consumer referred to the company as [redacted] ***in her complaint.) [redacted] ***added the $to the account in errorThe $has since been removed from the outstanding balance We have been advised that a recurring payment plan to pay off the loan has been establishedAt this point in time, neither AAFMAA nor [redacted] ***has forwarded the account to the three credit bureaus If Staff Sergeant [redacted] understands differently, we need to be provided a copy of reports stating otherwise Attached is the letter that we have sent back to the SSG [redacted] , which explains the circumstances