Consumer complaint received 2019-03-08
Company: Rhode Island Student Loan Authority
State: DC
Product: Student loan
Sub-product: Private student loan
Issue: Getting a loan
Sub-issue: Confusing or misleading advertising

Complaint:
On XX/XX/2019, I contacted my current private loan company RISLA ( " Rhode Island Student Loan Authority '' ) about refinancing a loan. The representative reviewed the account and noted that I had a high interest rate of 7.75 %. The representative advised me that refinancing my loan through their program would greatly reduce my interest rate and could result in a lower monthly payment. The representative advised that as long as met minimum credit requirements, that I would be able refinance. I reviewed the requirements outlined on their website and noted the following qualification statement : " Unfortunately, refinancing isn't an option for everyone. If you are looking to refinance your loans, you are going to need to have good credit, or at least have a cosigner with good credit. What exactly does that mean? Although criteria varies from lender to lender, having good credit typically means : Being current on all of you existing debt Having little to no delinquency of your outstanding debts over the past few years Having a credit score at least in the mid 600 's, but often higher Having no public records such as judgments, liens, or bankruptcies on your credit report Being able to demonstrate your monthly earnings and meeting the lender 's minimum earning thresholds. '' In reviewing my situation, I confirmed that I met and exceeded all the above outlined criteria. Reasonably relying on the lender 's website statement and representative, I applied for refinancing of my private loan. 

No more than five minutes after applying online to refinance, I was informed that I did not qualify for the loan and my application was denied. 

On XX/XX/2019, I received a letter from the lender outlining the reasons for the denial. 

In their denial, the lender noted the following reasons for the denial : 1 ) Excessive obligation in relation to income 2 ) FICO score below acceptable value 3 ) Liquidity is less than monthly expenses On XX/XX/2019, I called the lender to review the denial letter. The lender representative specifically cited the following reasons for the denial. 

1 ) My savings liquidity was too low. 
2 ) My debt to income ration was 67 %, which exceeded their 50 % requirement 3 ) My credit score was XXXX, not the XXXX that they require. 

The lender also informed me that a hard inquiry would be noted on my credit profile due to the refinancing application. 

When considered in its totality, this lender coaxed me into making an application for a loan that on its face was attainable. Nothing in their stated criteria on the website nor in the statements made to me by the representative indicated that I needed to have the money in my savings account, a 50 % debt to income ratio, or a XXXX credit score to qualify for the loan. 

In further explanation of their reasoning for the denial, the lender indicated to me that their guidelines for qualification are subject to change and that explains why the criteria they use is not outlined on their website. 

This was an unfair solicitation and constitutes an unfair business practice. RISLA fraudulent induced me into making an application, not adequately spelling out the specific criteria for which to qualify. Furthermore, I am now penalized for making the application due to the hard inquiry placed on my credit report. 

I request a full accounting and investigation of their unfair application practice.

Company response to consumer: Closed with explanation