Consumer complaint received 2023-06-27
Company: ZuntaFi Corp
State: TN
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
This was an interest free grant from the XXXX XXXX XXXX XXXX XXXX ( XXXX ). It was to be repaid within 10 years of graduation. The full amount of the grant was {$10000.00}. It was deferred during my XXXX and XXXX XXXX programs. I graduated in XX/XX/XXXX and was notified by XXXX that my repayments would begin starting XXXX of XXXX. I had managed to make some small advance payments prior to the official repayment period, so my balance at the time of my graduation was {$9600.00} which needed to be repaid by XX/XX/XXXX. My father was a member of XXXX and they required that he co-sign for my grant repayment, however he passed away on XX/XX/XXXX, so my mother set up an automatic payment with XXXX for {$200.00} per month beginning on XX/XX/XXXX. We selected this amount because we wanted to repay the grant early and this payment schedule would have the loan paid in full by XX/XX/XXXX. ( the final payment would be {$270.00} ). We elected to continue to pay during the Covid deferment period. In XX/XX/XXXX XXXX suddenly stopped taking the payment with no communication and no notice. We called several times and emailed our contact there to find out why. The representative who answered did not work in the grant area, but believed it was because of the federal deferment. We explained that we did not want the deferment and had been trying to pay the grant early. He promised to pass that information along to the grant area. He explained that they were very short staffed at this time but he would try to get someone to call or email to help us. We did not receive any information so in XX/XX/XXXX my mother again emailed an automatic payment authorization to them with the request to process payments to catch the account up with our original payment plan. Our lives became chaotic at that point in time due to my mother 's health and subsequent move. We realized in XX/XX/XXXX that the payments to XXXX had never restarted, we still had no idea why they stopped and no one from XXXX had contacted us. My mother once again sent an email with our new contact information ( email addresses did not change ) and a new payment authorization. We did not hear anything from them until XXXX when I received a statement from XXXX stating this was a " student loan ''. My mother called this company and was told they were now servicing XXXX repayments. She assumed this was because XXXX must still be having difficulty servicing the grants themselves. My mother explained the details of the grant, including repayment requirements and payment history to XXXX XXXX of XXXX. She was told we could set up an automatic payment with them. XXXX XXXX seemed to pressure her to repay the grant faster than we originally planned and didn't seem to understand that this plan would pay the grant four years earlier than required. She did finally agree to {$250.00} per month payment which will now pay the grant in full by XX/XX/XXXX ( final payment is still {$270.00} ). I received a confirmation letter from XXXX XXXX dated XX/XX/XXXX confirming these details. ZuntaFi processed the first payment on XX/XX/XXXX and has continued to process payments each month on the XXXX as agreed. My current balance is {$1700.00}. The problem is every month I receive a statement that says my account is " PAST DUE '' when it is not and on XX/XX/XXXX my mother received a letter dated XX/XX/XXXX ( 3 days after they processed my XXXX payment ) telling her my " student loan '' was " in default '' and unless she made repayment arrangements by XX/XX/XXXX, it would be sent to collections and a host of other financial consequences. The letter closes with a demand for her to contact the office " AT ONCE to make satisfactory payment arrangements ''. The letter is signed by XXXX XXXX. This caused my mother extreme stress because we were leaving the following morning to go on vacation and we would not be back until XX/XX/XXXX which is 2 days after the demand deadline. I was willing to overlook the low level harassment of receiving a statement that misrepresents my interest free grant status, but I am NOT willing to overlook receiving a threatening letter when I have done everything possible to honor my commitment to XXXX. In case you are wondering- YES ZuntaFi processed my normal payment on XX/XX/XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation