Consumer complaint received 2018-10-16
Company: DISCOVER BANK
State: PA
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
I refinanced the loans that I had with Discover Student Loans through a new finance company. The loans were scheduled to be paid off right around the same time that my payment was due. I contacted Discover on XX/XX/XXXX @ XXXX EST to inquire if I should make a payment if the payoff was not completed by my due date. I was advised that I should not make a payment because they would have to issue a credit. On XX/XX/XXXX I contacted Discover Student Loans again because the payoffs had not been updated on their system. My refinance company had advised that the payoffs were sent on XX/XX/XXXX. During this call I was immediately advised that I needed to arrange to make a payment. I explained my previous call and inquired if the account was noted with this information to which I was advised that it was not. I was advised that they would make a notation of what I was previously advised. On XX/XX/XXXX I accessed my account online and found that payments had posted but not fully paid off. The amount that I refinanced equaled the total amount owed to Discover Student Loans. I contacted Discover on XX/XX/XXXX @ XXXX EST and was advised that some payments may not have posted as of yet but at this point I was missing {$57000.00} out of a total amount of {$110000.00}. This representative generously went into each loan and provided me the amount of funds that posted from each check. My refinance company sent 5 checks, 1 for each loan but Discover took funds from each check and applied it to each loan. The check # s XXXX {$20000.00}, XXXX {$12000.00}, XXXX {$27000.00}, XXXX {$27000.00}, and XXXX {$26000.00}. Out of all of these funds only {$58000.00} was posted towards my loans. XX/XX/XXXX I contacted Discover again because my account was still in the same status, at this time I advised that this needed to be escalated because my finance company had verified that the checks had cleared on XX/XX/XXXX. I had a conference call with my finance company and Discover in order to have them escalate this situation. I received 2 phone calls back from Discover stating that they needed the check numbers from my finance company in order to submit an escalation. My finance company sent Discover confirmation of payment as well as copies of the cleared checks. This information was electronically sent on XX/XX/XXXX. On XX/XX/XXXX my account was still in the status of owing {$58000.00} now due to interest. My Co-Signor and myself scheduled the day off work in order to attempt to get this resolved. I phoned Discover Student Loans at XXXX EST on XX/XX/XXXX. I requested to speak with a Supervisor- XXXX- who advised that it could take another 5 days until the escalation was reviewed and funds processed. I requested to speak with his supervisor as this was unacceptable. These funds were processed by Discover Student Loans on XX/XX/XXXX and as of XX/XX/XXXX my account was not showing a paid in full status. XXXX supervisor was to contact me back between XXXX EST. I received no call to which I contacted them again at XXXX. This time I spoke with a XXXX who stated that funds were being processed as we were speaking. He stated that the supervisor XXXX was still not available. I requested that XXXX contact me back within the next hour, to which I still did not receive a call. I contacted Discover yet again at XXXX, held for while and was then connected with XXXX XXXX At this time funds had been posted to my loans but I still had a balance of {$7000.00} that I still owed. I was assured that this would be resolved by Monday XX/XX/XXXX. I provided XXXX with the horrific details of my many experiences with his customer care representatives and how I had to demand an escalation, provide them with the proof that they received full payments in order to get resolution. I also advised that when the payoff amounts were provided to my refinance company, I had made an additional payment to Discover before the payoffs were completed and that I should have a possible credit owed back to my finance company. He inquired if I had an amount of a credit that I should have. I advised that I did not ... Their system should be able to determine that. He then stated that he would contact me on XX/XX/XXXX and that he would be able to provide me with a $ amount that he could deposit into my bank account for my inconvenience. I continue to advise Discover that they could contact me between XXXX EST to which they continued to contact me 2 hours later because they are located in Mountain time. The 1st call I received from XXXX on XX/XX/XXXX was at XXXX. He left me a message to contact him back. The 2nd phone call was at XXXX from a XXXX stating that all payments were posted and that he wanted me to authorize for them to deposit {$200.00} into my bank account as restitution. I stated that I did not feel comfortable accepting this payment as I did not feel this issue was resolved. I requested to receive records of how the interest was accrued on my accounts and wanted these documents sent to me. I was advised that they would be mailed. I have yet to receive this information. I also requested to understand how this error occurred with my funds and the explanation that I was provided was that the checks did not have account numbers on them so they did not know where to put this money. This company had record of the exact check numbers that were sent but they did not post the entire amounts of these checks. This is fraud! I need verification that the credit amount of {$400.00} listed on my account is true and accurate and not just a bogus amount. I would not authorize for them to deposit funds into my account as they wanted me to listen to a disclosure of the terms of this restitution. Through my research of my account I have found that my original loans with Discover, the 1st 3 years were all at a variable rate. I am not sure how this happened as myself nor my co-signor would have ever agreed to sign for a loan with a variable rate. I have located copies of the original promissory note that does not disclose an amount, rate or that I am agreeing to a variable rate. I again contacted Discover on XX/XX/XXXX requesting that they send me documentation showing what options I chose when I submitted the application electronically back in XXXX. I was advised at that time that they do not have this information and that the promissory note contains all this information. This representative actually uttered a subtle laugh under her breath at me when I advised that I have a copy of this promissory note that does not contain any of that information. I am to be receiving a copy of the promissory note that they have on hand which I am sure is an exact copy of the document I have.

Company response to consumer: Closed with explanation