Consumer complaint received 2018-12-12
Company: DISCOVER BANK
State: NJ
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Need information about your loan balance or loan terms

Complaint:
A {$30000.00} loan was taken out in my name with Discover in XXXX. This loan was taken out by father, who passed away on XX/XX/XXXX. I did not find out about this loan until late XXXX or early XXXX, after graduating from XXXX  XXXX. By XXXX or XXXX of XXXX, I had received communication from Discover that I had a loan that was past due and if payment was not paid immediately, the loan would come due all at once. I spoke with Discover representatives and explained that I did not apply for or know about the loan, but because it was connected to my social security number and was negatively impacting my credit score ( and a threat of {$40000.00} becoming due at once ) I began to make payments.

The loan was apparently put into deferment while I attended XXXX  XXXX, accumulating an incredible amount of interest on an already large loan. After beginning to make payments, I contacted Discover several times to discuss that the loan was fraudulently taken out in my name and that I was not aware of it. A representative informed me that I was listed as the principal borrower and my father had named himself a co-signer, so upon his death I was left with the loan I did not apply for or know about. Finally after two years of payment and discussions with Discover representatives, in XXXX, I was told that my loan would be referred to the Fraud Unit. I submitted an affidavit explaining many of these facts and more. An investigation was conducted and no fraud was found. I asked what items were reviewed during the investigation and was told that it was proprietary. That is not accurate nor an adequate explanation.

I intend to seek additional review of the fraud investigation but every time I speak with Discover I am on the phone for at least 45 minutes to an hour. Because their customer service hours coincide with my work hours, often times I can not get on the phone to deal with the issue. 

In sum, a {$30000.00} loan ( now upwards of {$44000.00} even after 2 years, including some months of forbearance, with payments of anywhere from {$400.00} to $ 540+ ) that was taken out in my name by father, without my knowledge or consent, was investigated by a Discover fraud unit over a short period of time and they will not disclose what documents were reviewed. These documents show that I did not fill out the application, all contact information was that entered by my father ( who obviously had knowledge of my personal information ). They will also show that any initial payments on the loan were made by my father or stepmother. Discover 's first contact with me was not until late XXXX or XXXX, despite the loan being taken out in XXXX. I should not have to continue to bear the burden of a loan that was taken out in my name without my knowledge, while I made the decision to attend XXXX  XXXX  and take on additional loans. Luckily, my XXXX  XXXX  was paid through Federal Loans that I knowingly agreed to and was prepared to properly manage. My financial decisions made while in XXXX  XXXX  ( relating to loans, living expenses, etc. ) was made without the knowledge of a substantial private loan that was taken out in my name. This has drastically altered my financial fitness and Discover has been difficult to work with in this regard, despite my repeated requests for information and review.

Company response to consumer: Closed with explanation