Consumer complaint received 2017-05-16
Company: AES/PHEAA
State: FL
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I am writing to dispute the reporting of a > 60 day late payment to credit bureau  XXXX  for my unsubsidized loan, sequence  XXXX , disbursement date  XXXX / XXXX / XXXX . This unsubsidized loan was paid in full  XXXX ,  XXXX .     I spoke with  two   AES repr esentatives and a   XXXX   representative regarding a > 60 day late payment reported to  XXXX  in  XXXX  of  XXXX . After a detailed review of the accounts, the following was determined : In a phone conversation on  XXXX   XXXX ,  XXXX  with  XXXX  representative  XXXX , she stated  XXXX  records sho w AES  reported a > 60 day late payment in  XXXX ,  XXXX  but did not specify a specific payment that was late. My credit report requested in  XXXX ,  XXXX  also indicates a > 60 day late payment in  XXXX ,  XXXX . Additionally, a review of my credit report requested on  XXXX   XXXX ,  XXXX , does not indicate any late payments on my  AES ac counts in  XXXX .   However, in a phone conversation in  XXXX ,  XXXX  with  AES re presentative  XXXX   ( ID  #  XXXX   XXXX ,  AES rec ords indicate a > 60 day late payment in  XXXX ,  XXXX . No notice was provided to me in  XXXX  or  XXXX ,  XXXX  that I was late on a payment.   I applied for automatic payments using direct debit in  XXXX ,  XXXX  and was approved for automatic payments through direct debiting on  XXXX   XXXX ,  XXXX .   Automatic payments began on  XXXX   XXXX ,  XXXX  to  two loans, s equence  XXXX   (   Unsubsidized )  and  XXXX   ( Subsidized ).    According t o AES repr esentative  XXXX   (  ID #  XXXX   ), AES recor ds indicate their automatic payment system did not apply the correct amount to loan sequence  XXXX  in  XXXX  and  XXXX ,  XXXX . These payments should have paid off loan sequence  XXXX  in full but they did not. As a result of the error in AESs automatic payment system, AES recorded a delinquent payment. However, the erroneous late payment was not reported to   XXXX   until  XXXX  of  XXXX .     As shown in the payment history and acknowledged by  XXXX  a n AES repres entative, the automatic payments for  XXXX  and  XXXX ,  XXXX  were not applied properly at no fault of myself.  XXXX  was to note the system error in the database and forward to the credit review team for correction. I followed up on  XXXX   XXXX ,  XXXX  with  XXXX   (  ID #  XXXX  ) who acknowledged the notes had been made but no further action had yet been taken to correct the error.     Complicating review of the circumstances was the timing of the > 60 day late payment report, which came many years after the alleged late payment. This has made a review of the circumstances extremely complicated and onerous on me as the consumer and further calls into question the accuracy of a late payment.     I am in the process of trying to secure financing for a home mortgage and the delinquent payment has impacted my credit rating and increased the cost of my home loan.

Company response to consumer: Closed with explanation