Consumer complaint received 2017-03-22
Company: Navient Solutions, LLC.
State: MN
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint:
On XX/XX/2017 I paid the remaining balance of {$950.00} on my Student loan # XXXX. 

On XX/XX/2017 I called Navient at XXXX ( 4 minute call ) inquired about separating out my loan groups. I had previously separated out loan # XXXX and loan # XXXX, over the phone with a Navient representative so that I could apply a higher payment to pay it off faster, and wanted to do the same thing with loan # XXXX. I was advised that they could not do this over the phone and I would have to go online discontinue my auto debit, separate my loans into the groups I wanted, and then re-enroll in auto debit. As advised by the representative I competed this online, and submitted a separate payment for XX/XX/2017 because I would not be enrolled in auto debit by the XX/XX/XXXX due date. 

On XX/XX/2017 I received a email stating that my payment was late. I called Navient at XXXX ( 9 minute phone call ) the representative told me that it would take 2-4 business days to process the payment and that it is currently processing and not to worry about it. 

On XX/XX/2017 I received a phone call from Navient at my place of work regarding a missed payment. I called Navient back at XXXX ( 14 minute call ), inquiring why they would call my place of employment when they had told me my payment was be processed. They told me their automated system places phone calls automatically. I then asked about my auto debit, and why I had to discontinue my auto debit and re-enroll to be able to separate out my loans when previously Navient had completed it over the phone. Navient told me that it was probably a miscommunication and that they could fix over the phone now. I asked Navient who miscommunicated because I knew it was not me. Navient said they did not know and asked how to resolve the issue, I asked Navient for the transcriptions of our phones calls to find out where the miscommunication happened. I was then informed in order to get the transcripts of our phone calls I would need a subpoena. During that phone call I also asked about the balance on loan # XXXX which was still {$22.00}. They informed me that there was still a balance of {$22.00} and that I would need to pay that amount to have my loan paid off completely. At that time I applied a payment of {$22.00} to loan # XXXX. 

On XX/XX/2017 I called Navient at XXXX ( 38 minute call ) after reviewing my account, and calculating interest rates, I discovered that the remaining balance of {$22.00} was not correct and the {$950.00} payment should have paid the loan in full. I told them they needed to look in the loan balance because the interest was not calculating correctly. I was told they would look into it and send me a letter regarding the discovery. 

On XX/XX/2017 I logged into my Navient account and seen a {$0.00} balance on loan # XXXX, and that the {$22.00} that I had applied specifically to loan # XXXX was evenly distributed to loans # XXXX,XXXX,XXXX,XXXX. I then called Navient at XXXX ( 19 Minute call ) inquiring who gave permission to allocate my payment of {$22.00} to my XXXX other loans. I was told that because they had discovered that there was an invalid balance on loan # XXXX I had overpaid it by {$22.00}, so they applied that money to all other loans. I was never asked how I wanted that {$22.00} to be applied or if I wanted it returned. I explained to the representative that I had authorized a 1 time payment for a specific loan, and did not give them permission to allocate my money as they saw fit. I then asked them to process a return to my bank account, I was told they could not do that but they could send me a check. I told them to start processing a check to return my money. 

On XX/XX/2017 I logged into my account to make sure my automatic debit had be processed. After reviewing my account I found that {$41.00} had been applied to loan # XXXX, not {$64.00} as indicated in my Auto Pay program document.

Company response to consumer: Closed with explanation