Complaint Review: DCS - Diversified Collection Services

This is a copy of the complaint letter I sent to Direct Loans and to my senators. As taxpayers you can complain about government sub-contractors and they have to answer each complaint before their contract is renewed. They don't have the right to engage in illegal practices and harassment. Let those who have the power to fire them know what's going on MAILED 2/21/09 US Department of Education PO Box 530260 Atlanta GA 30353-0260

February 21, 2009

Re: 1.) Complaint of illegal tactics used on loan

2.) This loan was consolidated with the loan of Charles Gorden XXX-XX-XXXX

...

4.) We are not refusing to pay but we are refusing to have anything to do with DCS

Dear Sir or Madam:

#1.) While all of the customer service reps at Direct Loans are friendly and professional, and most of them are helpful, in this environment of CEO with gold plated toilets getting government bailouts, I have a real problem with the underhanded tactics used by one of your subcontractors.

Cindy Harris (direct number is 325-224-6545, supervisor Melissa Farris) called my husband at school and told the secretary that it was an emergency regarding his wife and that she would hold while the secretary got my husband out of class. Then Cindy stated that Chuck was going to court with the Department of Justice on Friday unless I called back and made arrangements.

I called Cindy and stated that I am not currently employed, that I do intend to pay this debt and that I am hoping to be employed by August as a teacher and that all I could afford to pay was $20 a month. She asked me how much I made and what my bills were and I told her that I was not working, but my husband was. She said that I had to pay $465 a month which is one-fourth of his take home pay each month.

I also told her that it was inappropriate for her to call my husband out of class with a bogus emergency. She said that she would never say that because that is illegal. But that is exactly what she said, so she lied. She also lied by stating that it was Department of Education's requirement that I give the names of three character references. They also lied when they said that it was the Department of Education's requirement that I FAX them a signed copy of my IRS income tax form.

Both Cindy and the so-called Special Assistance department headed by Bob Miller both stated, Your loan is with the Department of Education so the Department of Justice is going to be prosecuting you. You will lose your home, we will garnish all of your wages, and we will come and take all of your assets including your car. When I called you-all at Direct Loans my DL representative said that that was the first time that they had ever heard of such a thing. In addition, Bob Miller was very rude and stated that I was obviously lazy and refused to pay my bills. He started telling me all kinds of personal information on the phone and reading to me all of the payments I've made to all of the companies in the last few years. I asked him where did he get this information, he stated that he knew EVERYTHING about me. If he knows so much, why do I have to give him even more personal information?

When I called DCS back and asked for the legal department, I was transferred immediately to Cindy Harris' extension. I then requested again to speak to the legal department. I was told that they don't have a legal department. When I asked to speak to whomever it is that does the actual filing of a lawsuit Cindy said, OK! Let me put you on hold! And then I was left on hold for 10 minutes.

After spending the day talking back and forth between Direct Loans and DCS, Cindy googled me, found out that I had done a one-night performance at a local community theater and called my director to demand that she give Cindy my current phone number. Apparently they called a number of other friends and family who were never on any of my applications....

4.) Again, I am unemployed, am looking for full time employment as a teacher and I have already started sending you $20 a month. I cannot pay any more. I am instructing you to please pull this contract out of DCS's control, as I will not work with them. Please instruct them to not call me or my potential employers or my friends or my family. Under the Fair Credit Collections Act you are responsible for the actions they take in your name.

Thank you so much for looking up the information and helping us in this matter. We appreciate the work you all do and it was my bad that I did not stay in contact with you when I should have. My apologies for that. Your customer service reps have always been helpful. My not staying in communication comes from my depression over not getting work after trying so hard to be a good teacher in the face of some serious oppression.

Sincerely,

cc: President Barak Obama Mailed 2/21/09

Senator Bingaman Mailed 2/20/09

Senator Udall Mailed 2/20/09

Department of Justice Mailed 2/21/0

Michele Las Cruces, New Mexico
U.S.A.