Debt collection -- Took or threatened to take negative or legal action -- Complaint #4490737
Complaint Overview
Complaint ID: 4490737
Company: Alum Financial, LLC
Product: Debt collection
Sub-Product: Federal student loan debt
Issue: Took or threatened to take negative or legal action
Sub-Issue: Threatened or suggested your credit would be damaged
State: Nevada
ZIP Code: 89119
Date Received: 2021-06-24T12:00:00-05:00
Date Sent to Company: 2021-10-27T12:00:00-05:00
Company Response: Untimely response
Timely Response: No
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I was called by Alum Financial a loan consolidation company that acts as a servicer for student loans as well. They told me I was approved for loan forgiveness of {$6000.00} on my consolidated loans from XXXX down to XXXX if I started making monthly payments of {$150.00}. I made a total of four payments to them none of which were reported to the Federal Student Aid or my appointed servicer XXXX ( whom of which I just found out is my official servicer appointed to my by the FSA ). It still showed my total amount owed before I started making payments as still the same. I asked them where my money is going and they sent me a receipt for my payments while avoiding two of my questions. I contacted the Federal Student Aid as well as XXXX both whom which told me they had never heard of Alum Financial. I was also told by both companies to contact my bank and stop all payments to them. So I stopped making payments. I recently received an email from Alum Financial that stated this could damage my credit and and garnish my wages if I did not update my bank information. After contacting them about this matter they said my loan would be paid off after completing the XXXX payments I owe them. They threaten late fees and fines for missed payment and was told by the FSA that no official servicer would ever charge fees of fines. I don't feel comfortable sending them anymore money and I would prefer to work with my servicer that works with the Federal Student Aid office.
Frequently Asked Questions
What is Complaint #4490737 about?
Complaint #4490737 was filed against Alum Financial, LLC regarding Debt collection specifically about Took or threatened to take negative or legal action. It was received by the CFPB on 2021-06-24T12:00:00-05:00.
How did Alum Financial, LLC respond to this complaint?
The company responded with: "Untimely response". The response was not timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Debt collection) and describe your issue in detail.
Can I see other complaints against Alum Financial, LLC?
Yes, visit the Alum Financial, LLC company profile at readthecomplaint.com/company/alum-financial-llc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.