Consumer complaint received 2019-01-16
Company: Nelnet, Inc.
State: CO
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I received an email on XX/XX/XXXX saying that my student loan and auto debit with the .25 % rate reduction have been transferred from XXXX XXXX to Nelnet. My complaint is that 1-Nelnet violated Regulation E 1005.10 ( b ) by changing my auto debit from {$190.00} to {$310.00} in XX/XX/XXXX ( a )  without my written/electronic authorization and ( b ) knowing that a payment change to {$310.00} does not meet a designation of either a fixed amount or the amount due, I definitely never agreed to a payment range 1005.10 ( d ) as specified by the rule and while they are in their right to use the preexisting authorization 1005.10 ( b ) -1 it does not allow for this kind of change, 2-when I called on XX/XX/XXXX they were unable to explain why the change occurred, 3-they have not responded to my direct messages from XX/XX/XXXX and XX/XX/XXXX to fix this error, and 4-that I am unable to set up another auto debit through Nelnet without the option of any other payment besides {$310.00} thus forcing me to set up an auto-payment through my bank and losing the .25 % rate reduction. I find this action by Nelnet to be a complete violation of our lender/borrower relationship. I haven't looked into it, but its possible there are ACH violations here as well. Below is an account of what I know. 

XXXX through XXXX XXXX XXXX monthly auto-payment of {$190.00} made XXXX XXXX payment of {$500.00} made ( first ) XXXX Servicing Transfer Notice to Nelnet XXXX Statement notice due XX/XX/XXXX for {$0.00} XXXX Notice of auto Debit on XXXX for {$190.00} XXXX Registered account and opted in to estatements on Nelnet website XXXX Statement notice due XXXX for {$0.00} XXXX Notice of auto debit on XXXX for {$190.00} XXXX Statement notice due XXXX for {$0.00} XXXX Notice of auto debit on XXXX for {$190.00} XXXX XXXX payment of {$500.00} made ( second ) ( XXXX ) Statement-missing this email XXXX Notice of auto debit on XXXX for {$190.00} XXXX Statement notice due XXXX for {$0.00} XXXX Notice of auto debit on XXXX for {$190.00} XXXX Statement notice due XXXX for {$0.00} XXXX Notice of auto debit on XXXX for {$190.00} XXXX XXXX payment of {$500.00} made ( third ) XXXX Statement notice due XXXX {$0.00} XXXX Notice of auto debit on XXXX for {$190.00} XXXX Statement notice due XXXX for {$120.00} XXXX Notice of auto debit on XXXX for {$310.00} ( no warnings ) XXXX logged into account to see if XXXX payment posted and saw new payment amount XXXX called Nelnet and was told I was put on a 10 year repayment ( technically if you amortize this payment out based on the balance at that time they amortized it for 2 years ) and could not stop the payment cause less than 3 days XXXX direct messaged Nelnet stating they were not authorized to change my auto debit XXXX Logged into account to get more information, noticed account is in forbearance ( unsure why since I have been paying monthly forever ) XXXX direct message to Nelnet that payment wasn't authorized, I was never notified of a change to my repayment plan, that I want the difference of the {$190.00} to {$310.00} returned and my auto payment be corrected XXXX Confirmation email that direct message was received by Nelnet XXXX Notice that tax statement is available XXXX Statement notice due XXXX for {$120.00} XXXX since I received no response, logged into Nelnet and tried to change auto debit amount but online form would only allow a {$310.00} payment, so cancelled auto debit I have other issues regarding late fees charged during forbearance periods as far back as XXXX, but I need more time to reconcile the payment history I received from XXXX XXXX just prior to the transfer. While it provided the payment history, it was missing start and end dates during these periods.

Company response to consumer: Closed with explanation