Consumer complaint received 2018-07-12
Company: Nelnet, Inc.
State: CA
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
At the end of XXXX of this year my public and private loans, which were being serviced by XXXX, were transferred to Nelnet and XXXX, respectively. As such, two checks that were sent to XXXX before the transfer in XXXX ( one of which was intended to pay off one private loan in full, and one of which was for private and public loan payments ) were sent by XXXX to Nelnet. It all went to Nelnet, instead of Nelnet and XXXX. Nelnet then applied all of this money apparently arbitrarily to my public loans. When I learned, in late XX/XX/XXXX, that my one private loan had not been paid off ( the check for that loan, in the amount of {$1400.00}, was earmarked specifically for that loan ) I contacted XXXX. They apprised me that they sent the money to Nelnet ( the check for XXXX and another check for XXXX ). 

I contacted Nelnet and spoke with people repeatedly, throughout the month of XXXX, explaining the situation : that they had to return the XXXX to XXXX, and that the check for XXXX had to be divided between them and XXXX. ( Of the XXXX, XXXX was designated for private loan payment. ) Each time I spoke with someone I was assured that things would be straightened out. 

After many frustrating conversations, I finally had a conference call on XX/XX/XXXX with XXXX from XXXX and XXXX XXXX from XXXX. I explained the situation to them, and after some checking they assured me that they understood what happened to the payments and that they would straighten everything out. They located the amounts and saw what went wrong, they said. All would be fine, I was assured. 

By the time XX/XX/XXXX rolled around I learned that very little had been straightened out. After speaking with multiple people, on multiple occasions, I was told that all would be ok, it was just taking time. By late XX/XX/XXXX, XXXX was telling me that I was delinquent in my payments. On XX/XX/XXXX I spoke with Forest at Nelnet, and on XX/XX/XXXX I spoke with XXXX at XXXX. Both told me that things were still being worked out. But the delinquency notices kept coming. And XXXX XXXX, who owns the loans, started emailing me notices of delinquency, too. 

I contacted Nelnet and XXXX repeatedly and repeatedly felt that I was being given the run around. After XXXX, in early XX/XX/XXXX I started talking with XXXX at Nelnet. When I expressed my frustration with her over this ongoing mismanagement she giggled, then she assured me that she would do everything to help. A few days later she told that me that they can not locate the money - checks that had been sent to XXXX and cashed in late XX/XX/XXXX. Monies that I had been told, on the conference call of XX/XX/XXXX, were located. 

Pursuant to her request, I emailed XXXX a copy of the cashed checks ( for XXXX and XXXX ) on XX/XX/XXXX. I also emailed this copy to a XXXX at XXXX named XXXX XXXX on XX/XX/XXXX. 

Today, XX/XX/XXXX, I received an email from XXXX stating that the checks are insufficient proof, that Nelnet would like copies of bank statements showing not only that the monies were sent but proof that they had not been returned as well. They were never returned - moreover, Nelnet had already applied some of the money to public loans. And strangely the amount Nelnet says I owe each month is about {$100.00} less than it should be. 

As of XX/XX/XXXX I have not heard back from XXXX XXXX at XXXX. 
And I am presently waiting on copies of bank statements to send to Nelnet which clearly show that the money was taken from the accounts and not returned. 


In the interest of bringing this seemingly never-ending mismanagement of payments ( which I am beginning to suspect is being carried out in bad faith ) to an end, I decided to file this complaint. 

Thank you

Company response to consumer: Closed with explanation