Consumer complaint received 2018-08-01
Company: TRANSWORLD SYSTEMS INC
State: CT
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
I am having an issue with XXXX ( XXXX XXXX XXXX ) over the handling of my Federal Perkins Loans. I have two loan amounts totaling {$5500.00} and another for {$4000.00}. In late XX/XX/XXXX I received notice from XXXX that the loan amount for {$5500.00} would start accruing interest and the first payment would need to be {$170.00} in XX/XX/XXXX. The loan payments would only be done quarterly. I started paying the loan in XX/XX/XXXX with no issue.

A notice was sent to my family member at a former address of mine including information about the {$4000.00} loan in early XX/XX/XXXX and included information that the loan would start accruing interest in XX/XX/XXXX with a first payment date in XX/XX/XXXX for an amount of {$120.00}.

XXXX claims that before any billing cycle, customers should expect to receive a statement in the mail or electronic correspondence 20 days prior to the billing date. I only received statements electronically regarding my XX/XX/XXXX payment for {$170.00} for my {$5500.00} loan.

In XX/XX/XXXX, XXXX  began sending me emails saying they would soon be moving their information and billing processes to a new website in XX/XX/XXXX. I received no other information from XXXX  regarding the payment status of my {$4000.00} loan and continued to only make auto payments on the {$5500.00} which was due on XX/XX/XXXX.

In mid XX/XX/XXXX, I received a statement from XXXX  in the mail saying that I hadn't paid an amount of {$120.00} from the {$4000.00} loan that was supposed to be due on XX/XX/XXXX. I immediately went onto the XXXX  website and noticed I had a balance due on the {$4000.00} loan for XX/XX/XXXX, but I wasn't sent prior notice before the bill date that the amount was due. I paid the amount of {$120.00}, payment was processed on the old XXXX website on XX/XX/XXXX and the payment came out of my bank account on XX/XX/XXXX officially. From XX/XX/XXXX XXXX   was migrating their information for their old website to their new website.

During the week of XX/XX/XXXX I began receiving credit alert updates that I had a delinquent account on my student loans and my credit score dropped nearly 50 points. I filed a formal complain with XXXX XXXX on XX/XX/XXXX after noticing that XXXX claimed I hadn't paid an amount of {$130.00} for the month of XX/XX/XXXX and the account was still past due. The only amount XXXX had informed me to pay was {$120.00} from the statement they sent me after XX/XX/XXXX. I called XXXX for the first time on XX/XX/XXXX to get information on the issue, on their website at the time my {$4000.00} loan claimed I owed over {$250.00} in payments for the month of XX/XX/XXXX and XX/XX/XXXX. I spoke to a representative and they told me they were still experiencing issues with their website and to call back later in the week to confirm any inaccuracies on the website regarding payment status would be corrected.

XXXX new website doesn't include any prior statements or documents for my account over the past 8 months. There is no way of looking into old statements, even the ones that were sent to me prior to XX/XX/XXXX regarding my {$5500.00} loan.

I called XXXX on XX/XX/XXXX since the website said I owed a balance of {$130.00} for the month of XX/XX/XXXX with a past due amount from XX/XX/XXXX of {$8.00}. I still hadn't received any word on why my credit report was still being impacted with an inaccurate amount that I owed ( {$130.00} ) and I was given any information on where the {$8.00} amount from XX/XX/XXXX had came from. The representative I spoke with said the only way to rectify the balance and clean my credit report was to file for forbearance on the amount of {$8.00}.

I called XXXX  again on XX/XX/XXXX to see if I could speak with a supervisor regarding the inaccuracy on their website saying I still owed a past amount due. Another representative told me about the forbearance option and said they would forward me to a supervisor. No one responded to request however, and I still haven't received an update from XXXX.

The loan amount for the {$4000.00} loan was {$120.00} and XXXX is no saying I still owe {$8.00} to them but this money comes from a XX/XX/XXXX balance. On XXXX  website the payment breakdown of my XX/XX/XXXX payment shows an {$8.00} fee which added together with the principal and interest equals an amount of {$120.00}. This other {$8.00} fee that is now added onto my payment amount for XX/XX/XXXX doesn't have any correspondence or notice to claim where it coming from. My credit report claims that this {$4000.00} monthly payment is supposed to be {$130.00} and that isn't what XXXX has even sent me a statement for. XXXX  is impacting my credit report by claiming a delinquent account for an amount that isn't accurate for what they asked to paid monthly on the {$4000.00} loan.

XXXX website also doesn't include any prior information regarding my loans ( statements, documents, etc ) which makes it impossible to find a paper trail for their claims that I still have an outstanding balance on a loan from XX/XX/XXXX. This is inaccurate since this loan didn't start taking payments till XX/XX/XXXX, and even then XXXX  didn't communicate with me through email correspondence or through the mail that the {$4000.00} loan would be taking payment 20 days prior to the due date. My credit report also shows no delinquency for the month of XX/XX/XXXX on the {$4000.00} loan for any amount, so I am confused to why I would suddenly have an outstanding balance of {$8.00} from XX/XX/XXXX.

XXXX  has been unresponsive and unwilling to send me any documents, statements, or other correspondence over the alleged {$8.00} past due balance from XX/XX/XXXX on the {$4000.00}.

Company response to consumer: Closed with explanation