ERC Student Loan Complaint

ERC Student loan department,

Non-federal student loan Dealing with my lender or servicer Trouble with how payments are handled Maryland

Gradated undergrad in 2007, into the recession. Could not find a stable good paying job to keep up with my private loans. My private loans where sold to - in which - sold them to another collection agency. I was contacted by ERC in an attempt to collect the debt, and they wanted to settle for what was the balance of my all my private loans at -. I agree and borrowed more money to pay the debt that was agreed for -, but ERC Lied and allocated the funds to other accounts that were NOT discussed and changed the parameters of the settlement without notifying me prior. It was only after I had paid them, that they sent a cryptic letter saying what account the funds had really been allocated too, thus furthering ruining my credit score and lying. IS THIS LEGAL.