Diversified Collection Services, Inc.

Pleasanton, CA

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Consumer Complaints and Reviews

I am a family member of the person Diversified Services is trying to collect an old, incorrect debt from. Somehow they got MY cellphone and home phone number although it is unlisted. When they called yesterday, I told them they should not have my numbers and not to call me again or I would report them. They continued with rude, threatening collection techniques. I told them do not call again and hung up.

This morning they called BOTH numbers again. I am not the one they are trying to collect from! I called them, told them I had done all the legal things, reported them to FTC, Commercial Protection Agency, and my state attorney general AND if they call again, I will look into online businesses that will call continuously every number they have to jam their lines AND businesses that will over stuff every mailbox they have with absurd junk mail! I have had it with these rude, aggressive collection agencies who skirt the law and manage to stay in business! ENOUGH with decent people being threatened by these scoundrels!

I received a email from a person that said they worked for this company stating I owed money. I called company, she doesn't exist!

I had school loans that I was making payments on, but it was determined I was not paying enough fast enough. Diversified contacted me for a re-payment plan. I was told no new interest would accumulate and the payments would be drawn directly from my account. I was told this would happen for 8 months, then my loan would be returned to the US Department of Education and no longer be considered in default. In the final month, I got a notice... it said that I was late on my payment. I called. I was told the loan had been returned to the department of education. I called the department of education... they told me they received nothing from Diversified and I needed to contact Diversified.

In the meantime, no payments could be made because nobody could tell me where to send it. This went on for months until my paycheck was suddenly garnished by over $500 (I am a teacher in a public school in Louisiana). I have tried to contact people at Diversified for over 2 years. I have left messages, but have NEVER been able to speak to anybody. They have charged me more than $1400 in unexplained fees since January 2015. They have also taken all of one tax return and half of the last one... with NO notice and REQUIRED BY FEDERAL LAW! They took over $12,000 in payments from me in 2015 alone. I have never received the "mandated by federal law" notice of garnishment, income tax offset, NOTHING. I plan to find a lawyer and give them the hell they have given me!

I paid off an outstanding debt that accrued when I no longer worked, due to taking care of my ailing mother. The debt was paid off a year ago, and they kept a lien on the property. I've called repeatedly and been given the runaround. The person I spoke to was Christina who is very rude and unprofessional. They are still demanding almost $5,000 which again has already been paid in full.

When I was laid off from my job, my loans went into default and was sold to Diversified Collection Solutions. When I spoke to one of their many representative, they was always rude and didn't care about my situation. One person went so far to tell me that I would have never went to school. Frustrated and hopeless, I reached out to the Department of Education and was able to get my loans consolidated. Unfortunately my issues didn't stop there with DCS. For the past year or so, they have been leaving bad marks on my credit. I am at a lost on what to do or who to reach out to. I even had my loans reconsolidated twice with no luck. I just want DCS out of my life!

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I called in to discuss a debt owed by me to US Cellular. The Reps don't like me calling in on my account and were rude. Diversified claims I owe 900.00 and I feel that they have no right adding a 200.00 fee to my $799 balance that I owed to US Cellular. I will make payments but it will not be for what they claim I owe.

We moved last year and at the time, my fiance and I both had Comcast, we decided to go with his plan as it was less expensive. I called Comcast and told them what we were doing with the timeline and when the service was to be disconnected. Comcast, did not turn off my service on the date requested, so when I got a bill we called and asked them to roll it into our new account although the amount was wrong they went through and corrected it and agreed that it would be taken off as a collection account. 3 months later I was checking my credit score and saw that I had ding from Diversified Collections.

First, I called Comcast and they agreed to take the report off the account and mark it as current and closed. There was a small balance that was owing of $93 but again I had no idea as they never sent me a bill. I went ahead and paid it, and called Diversified, talked to a supervisor and again they were going to take this off my report as the amount they were reporting was $234 and that was not correct nor was the report from Comcast. After another couple months, I called Comcast Corporate and they said they would take care of it as they could see what happened and it never should of been reported.

Now 6 months later, this shows up on my credit report as a collection account. Again I called and still no results, so I reported it to Experian and it came back as "Remains". I am so frustrated and angry that this still has not been resolved.

I did owe Sprint through Diversified. Sprint took my account back and gave my account to ERC a few years ago. On my credit it showed that I owed sprint $684 through Diversified and $684 through ERC. After I called all 3 places several times, ERC was the only company who could access my account so I settled with them and that amount came off of my credit report however Diversified is still showing that I owe $684 to sprint. That does not look good on my account because I'm trying to buy a house. Please take this off of my credit report thank you.

I called to get info about a collection I saw on my credit report that I was not aware of. The phone number was to a Pinnacle credit services but once I gave the operator my information, she explained that they were using Diversified Collection Services. (By the way the operator was the only real professional) Once transferred, a young lady asked for my social security stating (she could not look me up by the account number the operator had just given me). Then told me I would have to go to the police, file a complaint and fax all personal information. Asked if she could email the fax number and information to legally have proof of this request, she told me no. I told her I did not have a pen. She told me to call back and hung up on me.

Called back once again, spoke to the operator she reconnected me with Diversified where then I spoke to a **. Giving my social security once again because i was told that they could not look me up by account number that was given to me. Was then told by ** that they no longer cared for my account. (To remind you I was just on the phone with another young lady advising me that I had to go to the police and fax all my information to them). Asked ** why would there be no notes put on my account from the previous person I just spoke to? They are supposed to be recording these calls but no documentation is put in the system when you advise or in a customers account. She was very nice this young lady. However she understood how horrible it was to now give out my Social Security 3 times and now be told the complete opposite that they did not have my account.

What also was in question is that she re-asked me for the account number that both her and the other representative said they could not look up. WHY? but I gave her the number and now all of a sudden their systems were able to look it up. (So why was I asked for my social time after time. Even after I had said multiple times that I did not feel comfortable with saying my social security number). I was being transferred to a Manager but do you think I made it to him? NOPE. on hold hearing beeping for 5 min. No answer. Called yet again was transferred yet again, was asked for my social security yet again because supposed they could not look me up by the account number that was given to me. Asked if I could speak to the representative that was just helping me and was transferring me to the manager. Put on hold transferred to a random extension to leave a message.

Called back again, busted in tears with the operator that was so nice to me previously explaining what I had just been put thru (Operator felt horrible and explained she would email someone to call me shortly). Asked her why I was given this account number when they tell me they can't use it and harass me for my social security and she was appalled. Explaining to me that she gave me that number so I would not have to recite my social security number so many times to strangers. I recorded all of this as well.!

I have been working with Performant Loans to set up a consolidation plan and have been making steady payments for the last few months. I then started receiving phone calls from my grandma the same day I made my payments (on time btw) stating that the number 866-391-5548 had been leaving messages on her answering machine, claiming that my student loan repayment agreement was in jeopardy and that I needed to contact them to make a payment, even though I had already made my payment to a completely different phone number and person earlier that day.

I called the real Performant back, and they told me it was not them making the calls and it's actually not legal for them to leave all of this information on my grandma's voicemail and to disregard the message. So I did call the 866-391-5548 back and they immediately asked for my social security number (which I refused to give) and I told them I had spoken with the real Performant and that all my payments were up to date. The girl on the phone began to act really nervous and started giggling an apology and said that it may take a few weeks but they would take me off their call list.

If it really were a legitimate student loan's company that I owed money to, they would not have taken a call without a my social security number or account information and they would not have taken me off a "call list" with just me asking. Something sketchy is going on here so consumer beware!

I had a payday loan years ago. It is paid off. ** phoned my daughter yesterday and not only harassed her, but gave out all personal information regarding my payday loan that my daughter had nothing to do with. First and foremost, I did collections for years, you are not permitted by law to tell any one person referenced about anything. I was sitting right there and could hear her telling my daughter everything. This is 3 years of this crap. I have faxed them the paperwork showing this is paid in full, but they still continue to harass me, and now my family. I have filed a formal complaint with the PA Attorney Generals Office, the FCC, and also with the BBB. The number they are calling from is 716-625-9390. When you Google that number, it comes up as belonging to David Davidson Allstate Insurance in NY.

Diversified Collection Agency and its people are educated in calmingly abusing its prey on the telephone. They do so by talking over their caller not giving the caller a chance to speak, as if it is a recording, but I do not believe it is. IF the public wants to change the way these people do business, then complaints should be made at on the many complaint boards at every opportunity... it ended in my just hanging up.

These people call and when you answer they won't say anything. Then they are rude and harass you day and night.

I owed a company nearly $500. I called Diversified to settle this payment. I used what I figured to be a easy payment service over the phone. I could not have been more wrong. The employees at the company called me a liar and were completely unprofessional, saying I never made a payment even though I had a confirmation number. A couple days had passed and no luck in settling the feud. I then called the company I owed directly. They called Diversified and still got nowhere - so I paid them directly. A couple days later I looked at my account that showed both a payment to the company owed and Diversified. This caused a few overdrafts in my account. Diversified will not take any blame for what they did. The supervisor I talked with, Marcy, was as uneducated and rude as the rest of the employees. I know what they do is a miserable job but hey, that's what they signed up for, but like any other job, when you ** up - take responsibility.

I also have had an awful experience with a collection agency. But I will tell you after arguing on the phone with these unprofessional idiots. I certainly would just let them take me to court before I would pay by any other means other than a MONEY ORDER. I really don't know who they think they are. Personally I think whoever owes any monies to any company, they should be handling it themselves with the borrower, not some collection company that rips off the consumer 10 times over, because what they do is keep selling your name to other collection companies so the bottom line is results is never ending. I also think if the government would step in and take a hold of this whole situation with these bogus collection agencies and put all of them out of business things would be much better for everyone. It doesn't matter if you pay them or not, once they have your name, your debt, it will always be on your credit report still unpaid until at least the 7 years and will then drop off.

In my opinion, refuse to pay them any other way except by money order. If they really want that debt settled, they will take it that way. But I must warn you, even that way it still won't be settled, because all they hear is dollar signs, and nice fat bonuses for harassing and threatening the consumer. What gets me is the creditors and the government lets this go on and on with their **. They simply need to be put out of business, then all those idiots sitting there at their cubicles harassing people will be out of a job, won't be able to pay their bills and they in turn will find their names up for collections, harassed on a daily basis. They need to find a real job. So in the long run, get a lawyer to fix your problem, then they will go away.

These collectors are outrageous. They are very disrespectful and rude. I asked the manager Chris to let me talk to someone over him and he told me that they did not have time to speak to "people like me". This was just one example, there are many, of his direct disrespect.

They did not reports payment.

This company contacted me about a year ago talking about rehabilitating my student loan, they told me that I had to pay 100 dollars up front and then make a payment of 99 dollars for the next 6 months on time. After successfully doing that they would send my loan to another lender and my loan would come out of default status. This was almost two years ago. I contacted them in June or July of 2013 to ask when my loan would be sent to a lender and taken out of default and the agent on the other end of the phone told me that I had to make 9 on time payments and that I had only made six. I know I have been making payments of 99 dollars for over a year now. About two months after speaking with the agent, I received a packet in the mail saying congratulations and that I needed to fill out the packet and return it as soon as possible to them and that I must still make payments until my loan was serviced by another lender. This was in August or September of 2013. I have not heard anything from them yet.

This is a response to the former worker: no, they do NOT only contact references you listed, they will contact anyone whose number they can get who is associated with you, unless you let them know that you know that is illegal. I specifically informed them that I could not receive calls at work, did not provide that number, and they looked it up and called anyway. They also tried calling a FB friend of someone I know with a student loan who had their profile as 'public' (they've since gone private). They can leave a message, it is just a really time consuming task since they have to do the "If you are not this person, hang up" safety precaution. Since the phone numbers that appear on your caller ID do not actually lead to Performant, and they don't leave a message, it's impossible to know that they called unless you happen to be there to answer your phone.

As for calling them back, good luck, I've spent 10 - 20 minutes on hold each call for 3 business days in a row. Last but not least, if the exorbitant penalties and fees have made the loan too large to be paid off without severe hardship, you can claim it in a bankruptcy. Now I think I'll just contact the FL Dept of Education, tell them their collection agency is a major fraud and deliberately tries to put people in the position of non-voluntary payment, and see if they'll pull my loan back and work with me directly.

I switched carriers in July. This is now Oct. I paid T-Mobile the past due balance and the monthly balance of my account. All I owed them was $600 left. So this morning, I got a call from Chris at this company (Diversified Collection Services, Inc.) in Charlotte 800-771-5361 at 8:06 am. The call was less than 4 minutes long. When I told him I could not make payment weekly or bi-weekly, he got rude. Then he said I could do monthly so I told him that was fine but I couldn't start till November. I know I owe the money, but he said, "Well, it is clear that you don't want to settle this amount," and got rude, then hung up. I called T-Mobile. Of course, the account is sold to this company and they could not help me. I have been a customer of T-Mobile for years and to be treated this way over a $200 per line fee of connect after being a customer for over 10 years. WOW.

I am a former employee of DCS/Performant Recovery. Let me start with this. There are some bad people that work there. Yes, but in all fairness, they are doing their job. If you took out the loan then you have to pay it back, period. That company has no right to take money out of your account without your permission. That is against the law. The only ones that can take your pay is the government. So if you have a student loan that is a staffered then that's why your income tax is gone. That is no one's fault but your own. As far as calling your references, you listed them. You gave permission to contact them and as far them calling your neighbors, that is not against the law. Now what is against the law is if they say why they are calling and give out personal information without your consent.

They don't leave messages on voicemail due to privacy act so asking your boss to talk to them for you will get you nowhere. Now let me tell you what you can do. If you take control of the call then that leaves the collector without a way to talk or butt in. Don't ask for a supervisor because that is just the person that sits next to them. Half the time, most collectors are nice and will work with you. Just remember they won't get paid extra for clearing the account so really you're in control, you just don't know it. There are laws that protect you but again be smart about it. Cussing and yelling only makes you the fool, not them.

If you have an attorney then give out the information, the calls will stop and they have to call the attorney and not you. There is a 10-day no call that will be put on the account. That is enough time to get your affairs in order to deal with collectors. The real reason for this is to help people to deal with bad collectors. You can call the police but some will just say if you owe the money then pay it. You signed a legal doc to have phone calls and call ref so again it's up to you how you handle it. Good luck.

I am posting this on behalf of my elderly mother, June **. The New York City Environmental Control Board is charging my mother over a thousand dollars in violations for tickets she never received because unknown pedestrians left "paper cups" and "napkins" on the street in front of her house. She was away in Washington, DC, undergoing double hip implant surgery during the six-month period in question. The judge's ruling got Diversified Collection involved as the collecting agency. I think the letter to the Judge I am typing on my mother's behalf tells the story best:

Attached please find receipts for violation numbers **, **, **, ** and **. The preceding fines were paid in October and November of 2012 to Performant Recovery, Inc., North Canyon Parkway, Suite 100, Livermore, California 94551 (Formally Diversified Collection Services, Inc., - D.C.I. Inc. P.O. Box 9057, Pleasanton, California, 94566-9057). Collector's name is **, phone number 1 (800) 866-5317. They repeatedly claimed to have never received any money from me. That is not so, as you can see from the accompanying receipts. I went to E.C.B. in November of 2012, as they had not received any money from Performant. They said I could pay the $300 for each infraction. E.C.B. looked up my violations and noted that several had been paid already and at least one was duplicated from the Performant listing.

I wrote to Performant and asked them to forward my payments to E.C.B. (see enclosed letter) and send me the receipts. I have been waiting now for seven months. Performant then assigned me a new account number, further clouding and burying the original item identifiers. I subsequently paid for a trace to be put on the money orders (see accompanying receipts) by the issuing company, which identified the amounts and the dates they were cashed and where. About three weeks ago, I received a bill for $1,989.04. The expiration date for the E.C.B. fines to be paid was December 2012. The start date for Performant's involvement was January 2013, at which time Performant would handily be able to charge me the inflated prices.

Yesterday, I received another letter from Performant Recovery that claims that I owe them $2671.98 as of May 19, 2013. How can Performant continue to add interest and other charges that may vary from day to day in May 2013 for infractions that I paid back in October and November of 2012? Please help me out of this dilemma. It is neither fair nor just that I should be taken advantage of and mistreated in this situation. Attached please find my supporting documentation. Thank you in advance for your attention to this matter.

SS granted me disability, but DCS won’t accept what a judge granted me. Now, they say my credit report shows I am able to repay it in full. I borrowed $5,200 back in 1987, and now they say I owe $14,000. How can they do this? My monthly income is only $717. Who are they to say I am not disabled?

My student loan went in default and so my case was transferred to DCS or Performant Recovery Inc. I spoke with a Kelly ** who came across as a total bully. I explained to her that I have a minimum wage and worked only 20 hours a week. This company wanted me to pay $95 a month which I explained I couldn't do because I still had to pay my own bills and eat. She wanted all my information which I gave her except for the right bank account number. By now, I was very afraid of them taking my money and I won't be able to pay my bills like my rent, electricity, etc. So needless to say, the payment didn't go through. Mind you, they had already taken my taxes which were half of my total due.

In the next two weeks, they have bothered me at work and harassed my 18-year old daughter. I eventually called them back asking what right they had to bully my daughter around. I explained again that I had no way of paying that amount they asked, but this Kelly kept butting in not giving me the chance to talk. She kept threatening me with garnishing my wages and wanted other information. I told her I was not giving any more information to her unless I spoke with an attorney. Then she said she wanted the name of my attorney which I didn't give. This person was very rude and bullied me around for about 15 minutes. I do understand that I have to pay on my loan, but they are not willing to work with me whatsoever! I had to quit my job so they can't take my wages.

In 2010, my student loan went into default and was transferred to a collection agency. At the time, the collection agency was called DCS but later changed their name to Performant Recovery, Inc. I went through a rehabilitation program and I was told that once I made a number of payments, my loan would be taken out of default status and the negative marks would be removed from my credit report. Late in December of 2011, I received a call from a man calling himself John **. This is a person I had spoken with previously at DCS. He told me that I had made enough payments to get my loan out of default but that I must consolidate my loan through William D. Ford. He spoke very fast and became insulting and demeaning when I asked for the details such as interest rate and payment term. He told me that if I wanted to get my loan out of default, I had no choice but to consolidate and that I had to do it immediately.

I was confused and wanted to know what my interest rate and payments would be with the new company. John told me he could not answer my questions until I filled out paperwork. He told me that I must go to a website while I was on the phone with him, print paperwork, sign and mail it out before the end of December. I read the forms and it just looked like an approval for DCS to share my information with William D. Ford so that I could get further details. The next thing I know, paperwork arrives telling me that my loan has been transferred to William D. Ford Direct Loan Servicing PO Box 530260 Atlanta, GA 30353. I'm completely mystified at how this was possible without my permission.

I called Direct Loan Servicing, who was very friendly and open, but not very helpful. They told me that they had already consolidated my loan and that it was too late for me to do anything on their end and that I would have to speak with DCS. I called DCS and talked to John **, who became even more rude and outright lied. I asked to speak to his manager and was transferred to voicemail. I still have never received a call back. I received further paperwork from the new company about setting up my payments. I called and explained the situation to them, but because they couldn't do anything on their end, they recommended that I make my payments until it was resolved. We set up my new payments based on my income and I continued paying on my student loans with the new company.

At this point, I had paid full consecutive on time payments for over a year. I did call DCS again after not hearing back from John's manager the first time. I left a second message about a month after the first in March of 2012. Around the fall of 2012, I received a notice from DCS that my student loans were in default. I had been making payments to the company their account manager, John **, had pressured me into consolidating with. I had never received a single call or bill from DCS after the forced consolidation. I immediately called DCS to tell them they were mistaken because I had been making payments for over a year. The same John ** handled my call and told me that I had stopped making payments in January of 2012 and that if I did not immediately make a payment, they were going to garnish my wages. I was furious. I screamed that he had pressured and scammed me into consolidating 7 or 8 months earlier and that he had told me I had to or that my loans would stay in default and my credit would be ruined. He called me a liar and hung up on me.

I called back and asked for his manager. He handed me off to some girl who eventually admitted that she wasn't his manager and said there was none available. I was forced to leave another message. The following week, I still had not received a phone call back so I called Direct Loan Servicing and after a very long time on the phone with different people (all of which kept saying I've never seen anything like this before). I eventually found out that DCS had taken my loan back after consolidating. Nobody knows why or can explain to me why I was still receiving bills for the new company, why DCS wasn't billing me, why I was never notified of any of this. Everyone keeps telling me they've never seen anything like this. I called DCS and couldn't get away from John because if I called from work or my cell phone, the caller ID would send it directly to him. Each time I got him, I would ask for a manager and would have to leave a message.

It has been 10 months since my first message for a manager at DCS and I still have never received a call back. By blocking caller ID, I finally got a new person at DCS. I told her not to transfer me to John but that I needed help. I explained to her that I had been making payments, that I had bake statements that proved I had continually been making full payments on my loan for over a year. She told me she understood, but there was nothing she could do and that I would still have to enter the rehabilitation program again. At the time, I was saving up for a house and trying to improve my credit. I asked if this was going on my credit report and she said yes. I asked to speak with a manager and again, I had to leave a message. I left a message saying that I needed someone to take care of this, because I had made all of my payments and could prove it. I asked for a call back and said that I would make a payment when I got a call back. They never called.

The next thing they did was garnish 15% of my wages. I am so angry and upset that they can lie and intimidate people and get away with this. I have proof that I was making payments. I have proof that I want to show someone, but nobody at DCS will even talk to me unless it's to give them my bank account number to automatically deduct money. Not a single person will listen to me or look at the proof I have. Nobody will give me a clear answer as to why I'm in default. I have never felt so powerless in my life. I am being completely scammed by this company. A simple Google search of both Performant Recovery and Diversified Collections will tell you they have taken advantage of hundreds of people. In the end, to stop my wage garnishment, I had to agree to enter the same rehabilitation program I had completed over a year ago. It's like the past 2 years of payments never happened. I have no choice but to do what they say or they are going to garnish my wages. Their tactics are suspicious and underhanded. They use a method of confusion and intimidation to get people to do what they want.

I feel cheated and helpless against this company that bullies people to get what they want. Who's to say they aren't going to do this to me all over again in a year? I understand that there aren't a lot of details in here, but I do have my bank statements that show I was making payments to the new company. If you call Direct Loan Servicing, they will tell you that my loan was sold to them, but was taken back. The information is there. I just need someone to help me make these people listen. I don't deserve to be back in this rehabilitation program. Not only that, but PRI (DCS) should not be allowed to treat people this way. I am one of hundreds, probably even thousands, who have been scammed by them.

I got my student loans out of default in January of 2012. A month later someone from DCS named John said that I had to now consolidate my loans with another company to be able to keep them out of default. I didn't understand why. I asked him to explain it several times because it didn't make any sense, but he got very rude and nasty with me. In February, I consolidated and started making payments to the new company. After 6 months of making payments, I get a letter from John at DCS telling me I'm in default. I called him and he has no explanation as to why suddenly my loan has moved back to DCS. I called the new company and they said DCS requested the funds be sent back. So the payments I had been making for the last 6 months were just going into some black hole. Neither company can explain it. I've left 2 separate messages for John's manager and received no calls back.

I received a payment notification letter on July 29th, 2012 purporting a tax obligation to the State of Vermont; a state I had moved from over 7 years ago. I had never received any form of notice from Vermont regarding a tax obligation. The letter was unspecific as to the nature of the alleged debt. I responded as per FDCPA giving 30 days for a response. There was nothing from DCS or its agent. I sent another letter requesting a proper validation of the alleged debt, giving an additional 10 days to respond with documents validating the alleged debt. Again, no response. I contend that the initial contact was fraudulent as it now appears that DCS via its agent did not possess the required documents in which to perform a proper debt validation. I further believe that DCS and its agent's sole intent was to coerce and intimidate the assumption of a fraudulent debt by means of deception.

I had set up a payment plan with Paige ** at DCS for the amount owed on some back taxes with the state of Colo. Not long after, I started to be garnished on my wages by the state of Colo for the exact amount of the payment for DCS. I was able to contact Paige and she asked for a fax of the letter from the state for the garnishment. August 31, 2012, she said that she would contact the state of Colo to see if the garnishments are in fact for the same debt. I have since then called Paige at least 6 or 8 times with no response. So after the 15th of September, I called the state myself and Beverly (from the Dept of Revenue) sent an email to Paige to confirm that a contract for payment has been set up and that since it was for the same payment period, she would stop the garnishments.

I have since then left two voicemails for Paige to please contact the state so that the garnishments will stop. I can pay my debt as contracted with DCS. No action has been taken since. Today is the 18th of September and I have had no contact from Paige. I have been garnished almost $200 for the same debt that I set up a contract for with DCS. They have now changed their name and I cannot contact anybody else in their company.

I had my students loans with AES (American Education Services) paid down to around $27,000. I was out of work and asked AES for a deferment, requesting that the forms be mailed via snail mail to my house because I didn't have a printer at home that worked well. After three requests, I discovered that the forms were not only being emailed to me but were ending up in my spam folder! Finally, the forms were mailed, quickly filled out and mailed back. I then received a letter from AES saying my deferment was denied! When I called to ask why, I was told because the forms were received too late! Well no fooling, it took AES six weeks to figure out what it means to place forms in a mailbox. Next thing I know, my loans are in default.

I called again and asked what I can do to avoid this from happening and I was told either pay the loan in full or deal with it! I asked quite plainly if I could consolidate and I was told just as plainly no and that I was out of options. I was also told that once I went into default, I would become eligible for rehabilitation where I would need to make 9-12 consecutive payments. I could not be late or short any amount of money; otherwise, the count goes back to one. Once I completed the required number of payments, I would be taken of default. I said, "Great! How do we start?" The AES employee told me that I would receive a call in a few weeks with information. I never did. Instead, about three months later, I began to receive very rude, nasty and threatening phone calls from a company called DCS (Diversified Collection Services, Inc.).

The woman calling demanded nearly $36,000, telling me the extra money was for fees incurred because I was a loser who didn't bother paying my debt. She told me that DCS would hound me until the day I die and even after I died, DCS wouldn't stop because they would take my insurance money and SSI survivor's benefits as well leaving my husband and children with nothing! I ended up complaining to two councilpersons, my State Senator and my university. They said that DCS can't touch those funds and can't threaten me like that so I went to the Better Business Bureau of CA but they had nothing on them. I found out why later on. Then a month or two later, I received a phone from DCS but this time offering me the Rehabilitation Program. Then a few weeks after that, they offered Debt Consolidation.

The woman, whom I will refer to by her initials since she is no longer with DCS, TW, was very nice. She went through every step with me and explained that DCS had bought my defaulted loan from AES. TW further explained that I would make a series of payments to DCS while the consolidation process was being approved. Once approved, any payments I made would be applied to my balance and my default status would be fixed. It sounded easy enough. The payments to DCS were very affordable, $50 a month, and I even paid extra on my third month for a total of $210. But then everything fell apart. I received a letter from a company called Consolidated Loans stating that my application was denied. I was a bit confused because TW had made it sound as if DCS would be consolidating my defaulted student loans, not another outside agency.

Then I come to find out that Consolidated Loans received the paperwork nearly a month after I faxed it to TW. They never received a single payment and further, Consolidated Loans is a federally funded agency just like AES and I never needed a 3rd party like DCS to consolidate my loans! Apparently, I could have contacted Consolidated Loans myself, if I had known they existed in that 3-month timeframe between AES telling me that I had defaulted and AES selling my loans to DCS! But AES lied to me and told me there was nothing I could do outside of paying the debt in full! I spent those three months trying to get a private loan, borrowing from relatives and my husband's 401K but couldn't come up with $27,000. Well, last week, I received a call from a Ms. Paula ** from Performance Recovery. Apparently, DCS has changed their name yet again! That's right.

When I contacted the BBB of CA a second time, I found out why they had a hard time finding anything on DCS. The company has changed their name three times in five years! It makes you wonder why, doesn't it? Anyway, Ms. ** told me that I had no business contacting Consolidated Loans. Really? They have all my personal information so I think I have some rights in contacting them. Then Ms. ** said that I failed in completing my paper. I don't think so. So, Ms. ** then proceeded to place a 3-way call between herself, Consolidated Loans and myself. She cut both myself and the operator form Consolidated Loans off twice insisting that I was misinformed and given a lot of information that has left me confused. When I refused to be silenced, she quickly announced that she would help restart the process and disconnected the call with Consolidated Loans.

When I then told her that I would not restart the paperwork, Ms. ** was very quick to add that she never said that and that my mistake was not checking off a box on one of the forms. Things got a bit heated and I hung up on her. No sooner did I get off the phone did my phone ring again. This time it was the same operator from Consolidated Loans! He called me directly to let me know that my paperwork was complete and in perfect order. Apparently, it was a mistake on their end and they were correcting it at that very moment. This whole thing is a mess and I can't believe that I've been taken twice- 1st by AES and now by DCS. I may be embarrassed but not too embarrassed to fight!

I called to start making payments on my account in collection. I felt like I was being bullied by the manager. He wanted my debit card number or my checking account number so they could take my payment out of my account. I told him no. Then, he got all mouthy and want to make it like I was being the bad one. I was told that I had no rights because of the contract I had signed and that I did not get to choose. I was also told that my payment would not make a difference to him or it would not make his day. I am calling the company I really owe the money to and let them know who they have working for them.

Diversified Collection Services, Inc. Company Profile

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Diversified Collection Services, Inc.