Consumer complaint received 2020-08-27
Company: Nelnet, Inc.
State: FL
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 am writing to submit a formal complaint against Firstmark Services, my current student loan servicer. This company is inept and dubious, refusing to return calls or provide any written guidance regarding my student loan. I believe they are engaged in unfair trade practices and are in breach of my original promissory note. 

In XXXX, I consolidated my private XXXX student loans under a promissory note from XXXX XXXX XXXX, a copy of which I have. This note indicates that the interest rate is variable on a 3 month Libor rate plus 2.5 %, with reevaluation occurring every quarter. The note does not contain any limitation or restrictions on payment amount. The original payment amount was {$430.00} at 7.359 % on XX/XX/XXXX. 

During the financial crisis of XXXX, interest rates declined significantly and my variable rate interest loan reflected this. Also during this time, my monthly payment declined to a low around {$260.00}. As economies recovered, the Libor rate also increased and my payments increased. In XX/XX/XXXX when Firstmark Services became my new loan servicer, my payment was {$290.00}. 

In XX/XX/XXXX, my loan payment increased to the current payment of {$300.00}. This reflected a slow increase in the 3 month Libor rate over the years. 

The 3 month Libor rate suffered a decline in mid-XXXX and at the start of the third quarter hovered close to XXXX. My loan was reviewed at the start of the third quarter ( XX/XX/XXXX ) and my interest rate was reduced to the current rate of 2.56 %. Unlike previous declines, my payment did not decrease. 

I contacted Firstmark Services on four separate locations beginning on or around XX/XX/XXXX. Each time I contacted Firstmask, my question was why my payment had not decreased as it had done in the past. The first two times I contacted Firstmask, my question was escalated to a supervisor and I was promised a return call within 3 to 5 business days. I did not receive any calls. 

My next call on XX/XX/XXXX, I was again escalated to a supervisor. This time I was told that my lender, XXXX XXXX ( subsequent lender ), did not allow for payments to decrease. I informed the supervisor that my promissory note did not include any limiting language regarding my payment and that I believed this to be a breach of the promissory note and unfair practices. The supervisory again promised a return call in 3 to 5 business days and also promised an emailed copy of my note in which she alleged I signed and stated that the payment would not decrease. To date, I have not received a call back nor an email. 

My last attempt at resolving this was on XX/XX/XXXX. On that day I called Firstmark asking again about the status and again being told that my lender didnt allow for decreases in payments. I was again transferred to a supervisor who restated these terms. I again requested a copy of the rules they were reading from and was told I would receive an email. This time I asked for contact information for my lender, XXXX XXXX. The representative for Firstmark stated that there was no way to contact them and I would have to file an complaint through Firstmark and they would contact XXXX XXXX. I requested this be done on my behalf and, yes again, was promised a call and email within 3 to 5 days. 

I have exhausted all attempts to resolve this issue with Firstmark Services. The company does not return calls or emails and refuses to disclose how my payment is being determined.

I have copies of all original paperwork signed and the history of my loan dictates that there is no restriction on my loan to decrease in payment. Firstmark Services is in direct breach of my promissory note and appears to be engaged in some type of deceptive trade practices. 

I am requesting assistance in resolving this matter. I would like XXXX to produce the paperwork that restricts my loan from decreasing. I would also like an explanation as to, if such limitation exists, why my loan decreased years ago.

Company response to consumer: Closed with explanation