Consumer complaint received 2021-02-09
Company: Nelnet, Inc.
State: NY
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
On XX/XX/XXXX of XXXX I submitted a deferment request to NelNet in order to suspend payments as my current forbearance was about to end. With the pandemic in full swing, and having no employment, this deferment was crucial. I have the documentation regarding the applcation, which I am happy to attach to this case file. 

I never received a reply from Nelnet ( no emails, calls, nor physical mail ), and found that on XX/XX/XXXX my credit score dropped 120 points in one day, as Nelnet reported my account as delinquent 120 days. 

When I called to investigate the issue and ensure my information was received and processed, the representative said it was 'not their responsibility to follow up directly with their clients '. I was told that my application was rejected, and they tried to email me but, on the same call, told me they did not have an email on file. In response to my query regarding why I was rejected, they told me I needed to use the income-driven deferment form and not the form I utilized. Further, I asked why they simply did not mail me a reply or an update, to which the agent told me it is not their policy to mail customers this type of information. There was no attempt made by the company to update me regarding my application status and no effort to ensure they had my contact information in order to communicate account updates. I also find this odd, as I have had previous email communication with the company prior to this incident - so they DO have my contact details. Not only was the agent unwilling to work with me to rectify the issue, but he also blatantly misrepresented the facts by stating they did not have any record of contact information. 

My student loan account status history has been impeccable up to the point Nelnet took over my account. Previously, my account was serviced by Great Lakes for many years and I never had any issues. My accounts were in good standing and they possessed all of my relevant contact information - which should have been transferred to Nelnet. Now, through negligence and a refusal to accept responsibility for their actions, my credit score is below 590 ... it used to be in the low 720s before this incident. I am trying to get a mortgage and this has severely hampered my ability to do so ... traditional lenders will not consider me and I am not willing to pay predatory lending rates. Further, I had to lease a car as my prior lease expired in XXXX. I now have a ridiculously high-interest rate as my credit score placed me as a tier 3 applicant for the lease. 

I believe Nelnet acted maliciously because my accounts have been current and in good standing for over 20 years. they know I am a candidate for possible student loan forgiveness based on the length of the account and good history. I believe they deliberately ignored my application and avoided a response to my inquiry so they could alter the standing of my account and retain the full balance so they can continue to accure interest and keep the loan payments in their coffers. 

Nelnet 's negligence has caused irreparable harm to my credit and is costing me to not only suffer egregiously high premiums for my car but also preventing me from owning a home. Further, they are negatively impacting the potential for full or partial forgiveness of the loan. In these very trying financial times during a pandemic, Nelnet showed no regard or remorse for their actions and took advantage of me and my family, placing us in even more dire financial straits. I would like this issue rectified and Nelnet to be held fully responsible for their actions. 

Please review the 2 attached files to support the above. The first is the initial application which I submitted on XX/XX/XXXX. The second is the application I re-submitted in XXXX of XXXX.

Company response to consumer: Closed with explanation