FedLoan Servicing connects debt of someone with my name to my address

[vees]

Below is redacted for the privacy of the actual debt holder:

 

Several months ago I started to receive paperwork and billing statements from FedLoan Servicing about outstanding balances on two Stafford Loans. The papers were addressed to my full name including middle initial and my current postal address. The timing of these letters happened to coincide with about ten years since the end of my last college class and also with the announcements by the federal government that they would be directly taking over the balance of many outstanding student loans.

 

My parents have been kind enough to help pay my outstanding student loans, even the ones that were taken out in my name. I verified with my father that he wanted to continue with this arrangement even though whatever loan this was had started being addressed to me personally. He agreed. As per our routine I scanned and e-mailed him every document that arrived with my name on it from FedLoan Servicing.

 

The first payment of [redacted] was due on 8/1/2010. Prior to that date, my father attempted to set up an automatic payment by logging into the website at www.myfedloan.com with the account number listed on the customer statement and my social security number and date of birth. When neither of those worked he contacted me and said there was an issue with the account.

 

I forgot about doing this until the next month when a statement dated 8/12/2010 with a due date of 9/1/2010 arrived. This was immediately followed by a dunning letter for the past due amount of [redacted] threatening to report missed payments to credit agencies. On 8/25/10 both my father and I tried to log into the website using my information and were again rejected. To protect my credit rating, my father sent a check for [redacted] to account number [redacted] on the morning of 8/27/10.

 

On 8/27/10 at 8:25 am I called FedLoan Servicing at 800-699-2908 and spoke to [redacted] who asked me for my account number and date of birth. When I gave her my date of birth she told me that it did not match. I gave her my father's date of birth and my social security number in case there was some sort of confusion based on the origination of the loan. She said that none of them matched to any part of the birth date on file -- month day or year.

 

[Redacted] concluded and informed me that FedLoan Servicing had incorrectly attached my mailing address to the account of another person with my name and instructed me to shred all documents I had received in relation to that outstanding loan balance. I told her that a check had already been sent in the amount of [redacted] against the outstanding balance for this account, and she said that I should immediately put a stop payment on this check. When I told her that might not be possible, she told me that it could take up to 30-60 days to return the balance of that money.

 

This is where I left off with them.

 

Questions:

 

How badly did they screw up here by connecting my address to another account based just on name? Is this even legal?

 

Is this a FDCPA violation? Is it something else?

 

Assuming the stop payment doesn't work in time, what can I do or say to get the money back as quickly as possible?

 

Is this worth contacting the ombudsman at the Department of Education about even if its resolved amicably?

 

Do I have a legal or just an ethical responsibility to safely destroy the documents in my possession?

Edited August 27, 2010 by vees

[snowpuppy]

A bill for 10 yr old defaulted federal student loans shows up at your house with your name on them, you email your dad and he is paying your bill even tho you are saying they are not your loans?

 

While the information they are relying on in the National Student Loan Database may be inaccurate as to name & date of birth, they will have your signed promissory notes on file. A signed promissory note, especially one that is at least 10 years old would have been done by paper with pen and ink signatures and other identifiable info.