Date Received: 2018-03-18
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: In summary this complaint is about a payment for {$56000.00} that I sent to XXXX XXXX, a division of Nelnet , Inc. to fully payoff my consolidated student loans. The problem is very simple. XXXX XXXX still has not credited my account for this payment even though I have supplied them with documentation proving that the check had cleared my attorney 's XXXX account, and that the check was received and processed by XXXX XXXX and their parent company, Nelnet , Inc. over a week ago. The specific details of this complaint are as follows : 1. On XX/XX/XXXX, my attorney mailed a check for {$56000.00} to XXXX XXXX, a division of Nelnet , Inc. to pay my loan with XXXX in full. The loan was originated with XXXX, but unfortunately, is serviced by XXXX XXXX. The {$56000.00} was funded with the proceeds of a mortgage refinance, which is why the funds were disbursed from my Attorney 's XXXX account. 2. By XX/XX/XXXX I noticed that XXXX XXXX still had not credited my account, which concerned me, as two other creditors that were paid off from my mortgage refinance had already credited my accounts by XX/XX/XXXX 3.On XX/XX/XXXX I contacted XXXX XXXX for the first time to determine if they had received the check. I was advised by an associate in their Customer Service Department that they had no record of having received the check. But that I shouldn't worry because processing can take 7-10 days. 4. 0n XX/XX/XXXX I again accessed my XXXX account online to determine whether or not my account had been credited. It still had not been credited, a full nine days after payment had been sent. 5. Out of extreme concern at this point that these funds had been misapplied, or worse, misappropriated, I contacted my attorney on XX/XX/XXXX to determine the status of the check. My attorney confirmed that the check had in fact be paid. It had cleared their account on XX/XX/XXXX. 6. Immediately after receiving this information, I contacted XXXX XXXX again on XX/XX/XXXX and communicated to them that the check had in fact been paid. 7. The representative maintained that XXXX XXXX had no record of having received the check. This horrified me, because the amount represented a full annual salary for me. 8. Being somewhat familiar with how payment processing facilities work due to my husbands career as a XXXX XXXX XXXX, I asked the representative if their payment processing facility or " lock box facility '' captures and maintains images of all checks that they receive and process. The representative confirmed that they did perform that function. So this seemed like a simple fix. I asked if XXXX could obtain a copy of the check from their records to find out where it had been misapplied, so that the error could be corrected, and my account properly credited. 9. I was shocked at the response I received. The representative told me that XXXX could not and would not do that. That for the error to be corrected, I had to supply a copy of the paid check. 10. On XX/XX/XXXX, I contacted my attorney again to advise them of my need to obtain a copy of the paid check. They could not believe what I was dealing with at XXXX and were able to provide me with a copy of the paid check - front and back that showed the check was endorsed by Nelnet , Inc. - the parent company of XXXX XXXX back on XX/XX/XXXX. 11. I forwarded this indisputable evidence of payment to XXXX XXXX via an email containing a PDF image of the check to XXXX XXXX, an " Advisor '' within the XXXX XXXX Contact center, early in the morning on XX/XX/XXXX. Within this email I advised XXXX XXXX that now that I had provided them with clear proof that I had made a payment of {$56000.00}, and that XXXX had received and processed the payment, that I expected my account to be immediately credited. 12. Much to my dismay, the response I received from XXXX XXXX via email indicated only that she had received that documentation I forwarded, and that she would forward it to another department for review. They STILL refused to credit my account. 13. So in summary, as of XX/XX/XXXX, a {$56000.00} payment that I mortgaged my house to make, that XXXX XXXX received and processed on XX/XX/XXXX, STILL has not been credited to my account even after I supplied their representatives with proof of payment which I will happily provide to the CFPB. 14. I don't feel any further investigation is required by XXXX XXXX. I supplied them with indisputable proof that I made this payment, that they processed this payment, and that their company received funds for this payment. 15. I should not have to wait for XXXX XXXX to conduct an internal investigation to recover these funds that they clearly misapplied or misposted before my account is properly credited for this payment and backdated to XX/XX/XXXX. I don't care if they have to debit their accounts receivable ledger, but my account needs to be immediately credited at this point. 16. I would like to note, that the lack of concern that XXXX XXXX has displayed in resolving a serious problem that they created through an apparent processing error disgusts me. This has caused me a great deal of stress and mental anguish. I haven't slept in a week because this is causing me so much stress, and quite frankly, they don't seem to care. They display no sense of urgency to resolve this matter. In fact, they act as if these types of processing errors are rather routine.
Company Response:
State: NY
Zip: 11710
Submitted Via: Web
Date Sent: 2018-03-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-16
Issue: Getting a loan
Subissue: Confusing or misleading advertising
Consumer Complaint: THIS UNIVERSITY US FRAUDULENT ADD TO BRING STUDENTS THEY PROMISE TO HELP YOU TO GET A JOB AFTER YOU FINISH BUT IS NOT TRUE WE ARE ALREADY TO MANY STUDENTS SCAM BY THIS SCHOOL BECAUSE THEY OFFER YOU A DEGREE AND WENT YOU GO TO APPLY FOR JOB THEY SAID THIS CERTIFICATE IS NOT GOOD AND THEY STACK US WITH A LOAN AFFECTING US WIT OUR CREDIT AND WITH NO JOB, AND I WANT THEY TAKE BACK THIS LOAN OR HELP MY GET A JOB LIKE I WAS PROMIS
Company Response:
State: CA
Zip: 93534
Submitted Via: Web
Date Sent: 2018-03-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-16
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: Nelnet is reporting me as 120 delinquent when I was not in repayment, and forwarded a payment history which proves their error. The attached email from Nelnet proves that my application was submitted eventhough it does not show on their history. I was not required to make payments at that time ( so had no payments to continue ) and was subsequently approved for an income contingent plan. I should never have been reported 120 days late. That rating is devasating my credit, and must be corrected immediately..
Company Response:
State: CA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2018-03-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-15
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I previously had my substantial student debt serviced by XXXX. Within the last year, the servicer was changed or the account was sold to Nelnet. Under XXXX, by default any overpayment of your monthly payment amount was automatically applied to principal. Thus, in the case of long term repayment plan, reducing the term and overall dollar amount of payments over the life of the loan. With Nelnet, there is no option to apply overpayments directly to principal on their paper statements or on the website ( I use electronic payments through the website ). Nelnet by default takes your overpayment and applies it to reduce your next payment. Buried deep within the fine print, dropdown menus, and additional steps which include a phone call to an account representative, there is an option to call them to change the allocation and have overpayment applied directly to principal. I submit there is a very good reason this feature is buried and not easy to accomplish. The servicer will be fleecing anyone who does not understand the difference of advancing to a future payment vs being applied to principal. I am sure there are plenty of borrowers out there that do not understand the difference and will ultimately be paying more than necessary over the life of the loan. I believe this is a deceptive practice. A practice I actually believed was illegal but perhaps only when applied to credit card issuers. I generally do not take the time to write complaints, but this practice will result in perhaps many thousands of borrowers significantly overpaying on a long term loan because they being taken advantage of by these deceptive practices.
Company Response:
State: MI
Zip: 48309
Submitted Via: Web
Date Sent: 2018-03-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-15
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: I consolidated my school loan in XX/XX/XXXX when someone from XXXX reached out to me and told me it would be wise because interest rates were rising. Unaware of what I was doing or what it was, I did in order to lock in my interest rates. I was told I could receive a XXXX % interest rate reduction if I had autonatic payment withdraws and after XXXX on time payments I would receive an additional XXXX % interest rate reduction. My loan was sold and/or serviced by three different companies since the consolidation ( XXXX, XXXX, Nelnet ) I was in forbearance or deferment until XXXX ( when I began stable employment ). I forgot all about the incentive programs. I made consistent on time payments starting XX/XX/XXXX, at which time XXXX withdrew the monthly amount from my checking account. In XXXX or early XX/XX/XXXX, I was informed effective XX/XX/XXXX, I would have a new servicer ( Nelnet ) and they would be responsible for my loan ( they assured me all information would be transferred over, if I had automatic payments it would continue as agreed with XXXX ). In XX/XX/XXXX, my interest rate was reduced by XXXX % ( at that time, I remembered the statement about XXXX on time payments ). In XX/XX/XXXX, Nelnet raised my interest rate back to what it was previously, stating I did not qualify for the incentive. I begin calling Nelnet multiple times to figure out what the problem was. A Nelnet representative informed me I did not qualify for the incentive because I had missed a payment. I asked when, seeing that Nelnet had been taking money out of my account on the XXXX of every month. The Nelnet representative stated the information they received disqualifying me was from when my loan was with XXXX and I needed to contact them for more information. After reaching out to a XXXX representative she was unable to tell me when I was disqualified or when I missed a payment and started working with me to work with Nelnet. Finally after a month and a half, I was informed that I was disqualified from the XXXX % interest rate reduction incentive in XX/XX/XXXX. My question to Nelnet, how can I be disqualified from the XXXX % interest rate reduction incentive prior to even making payments? All of this happened because Nelnet gave me the XXXX % rate reduction for 5 months, took it away and adjusted my account accordingly. At the time Nelnet had offered the XXXX % interest rate reduction, I had already made 72 months of on time payments ( 36 months auto withdraw with XXXX, 36 months auto withdraw with Nelnet ). Technically, my interest rate should have been lowered by XXXX % effective XX/XX/XXXX, 36 months after I made on time consistent payments to XXXX, and then the terms should have remained once Nelnet became the new servicer. I feel Nelnet is not honoring the agreement I had with XXXX when I consolidated in XXXX. I made 36 on time consistent payment as of XX/XX/XXXX, at which time my interest rate should have dropped by XXXX %. I have since paid the loan off because I did not like the treatment I received regarding this matter. I feel Nelnet should have to backdate my account to XX/XX/XXXX and make my interest rate reflect a XXXX % lower interest rate and refund me the over payment.
Company Response:
State: CA
Zip: 95823
Submitted Via: Web
Date Sent: 2018-03-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-13
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: As a college student I borrowed Federal Aid from the years XX/XX/XXXX - XX/XX/XXXX. In total, about {$22000.00}. My loans went into repayment in XX/XX/XXXX. I was informed that due to my gross income, I had qualified for income based repayment and have been on the payment plan ever since. My issue is that I have only ever signed an application that did not disclose the terms or consequences of choosing an income based repayment plan, which has now incurred an additional {$10000.00} in principal balance owed. I want to know why a mortgage loan requires 100 pages of disclosure and a truth in lending/loan estimate to be signed, but there are no documents that indicate A ) your monthly payment may not be high enough to pay the interest that accrues on your loan each month, B ) the unpaid interest will be capitalized to your loan balance, thus increasing the principal amount owed, and B ) when your balance is finally " Forgiven '' the amount that is forgiven needs to be claimed as income on your tax return. I have gone through all of my paperwork since XX/XX/XXXX and can not find any piece of paper that acknowledges these items. I feel I was taken advantage of by this servicer in a financial hardship which has snowballed my financial trouble. I spoke with " XXXX '' today who was extremely rude and told me to " relax '' and to " Just keep paying since my balance will be forgiven, '' When I called him out on having to claim the charge off on taxes and that although I keep paying my balance will increase since the payment will not cover interest, he said my other option was to just go back to standard repayment. ( At $ XXXX/month ) I feel that numerous lending laws have been violated in the lack of disclosure of the terms of this repayment program. I want this investigated and I do not want to be responsible for an additional {$10000.00} that I never signed a Note to Borrow.
Company Response:
State: NC
Zip: 28078
Submitted Via: Web
Date Sent: 2018-03-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-12
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: My loan servicer changed from XXXX now to XXXX ( Nelnet ). My loan interest rate was reduced to 0 % with a loan modification I did a few years ago. Now Nelnet is charging me a 1 % interest rate and has already applied interest to my loan! This is disturbing beyond belief!
Company Response:
State: CA
Zip: 92648
Submitted Via: Web
Date Sent: 2018-03-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-08
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: I received student loans subsidized and unsubsidized and consolidated them and started to repay the loans in XXXX. I have requested that Nelnet send me an amortization schedule and have not yet received this information. There is no consistent amount applied to interest or principle. My original loan after consolidation fee was {$30000.00}. As of XX/XX/XXXX I have paid {$24000.00} of that payment {$16000.00} was applied to interest and {$7000.00} has been applied to principle. My current principal balance is {$33000.00} which is {$2400.00} more than my original loan balance. When I call and ask about the fact that my principal has never been lowered. They tell me that it is because my loan has been put in forbearances multiple times. When I asked to see documentation of why this happened ; I was told this was a verbal agreement. I disagree with this because I have not asked for forbearances and feel like this is just an excuse to increase interest rates and capitalize interest. I feel like Nelnet is using fraudulent lending techniques to increase loan balances by capitalizing interest.
Company Response:
State: LA
Zip: 71457
Submitted Via: Web
Date Sent: 2018-03-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-07
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: I just called the student loan provider because I noticed that I had forbearance on my account, he said oh that is just an administrative one because you are waiting to hear back about your IBR. I double checked to make sure that I was not being charged because I did not want to be in forbearance I just wanted to get into IBR. He double checked with his supervisor and found out that I actually was being charged for one month of forbearance ( XXXX ) because I was behind on my payment before I applied for IBR. Which is a whole other story because they lost my application the first round inXX/XX/XXXX so when I reapplied in XX/XX/XXXX I hadnt paid the past month because on their website it said that my application was processing. When I talked to the servicer that time she just send oh just resend your paystub and I will get the application moving. Not saying a word to me about putting me into forbearance. Now on XX/XX/XXXX I called to double check the progress of my IBR and when he cam back to the phone and let me know I was being charged I asked him if there was anything I could do because I had already had this conversation a month ago and thought it had been figured out and now I am being charge XXXX to get to a IBR plan which was because I couldnt afford it in the first place. He then let me know that while he definitely agrees what happened to be was wrong and how he believes me that my application was lost the first time that it was honestly an unwinnable case against the company because there is no documentation from the processing department saying they every received my first application so I would have nothing to show to say that I was wronged. He then added that it would only be XXXX a payment in the future on my loans so is it really worth it? He also added that to continue moving my application along they were missing how often I get paid and the application would not have been able to move along had I not called. They also had never informed me of this or sent me any notification about it.
Company Response:
State: CO
Zip: 802XX
Submitted Via: Web
Date Sent: 2018-03-07
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-03-06
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: IN XX/XX/XXXX, I CONTACTED NELNET TO INQUIRE ABOUT ACCRUED INTEREST ON MY LOANS BETWEEN XX/XX/XXXX-XX/XX/XXXX. OVER {$7000.00} IN INTEREST HAD ACCRUED DURING THIS 3 MONTH TIME-SPAN, ALTHOUGH ALL OF MY LOANS SHOULD BE IN A GRACE PERIOD. I GRADUATED FROM XXXX ON XX/XX/XXXX ... MY REPAYMENT SHOULD NOT START UNTIL XX/XX/XXXX. I HAVE MADE 3 FORMAL COMPLAINTS ABOUT THIS.
Company Response:
State: GA
Zip: 30318
Submitted Via: Web
Date Sent: 2018-03-06
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A