Consumer complaint received 2023-02-17
Company: Maximus Education, LLC dba Aidvantage
State: SC
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 am a registered nurse in repayment for my Federal student loans. On XX/XX/22 I attempted to make an extra {$500.00} payment through my servicer, AidVantage. I used my XXXX XXXX XXXX XXXX check card. Before the payment could finish processing, my wallet was stolen, and I froze this card. In response, AidVantage took it upon itself to request the funds from an older checking account that I had used in the past and neglected to remove from my profile. This account was with XXXXXXXX XXXX. Unfortunately, I had let this account dwindle until only {$2.00} remained, and had all but forgotten about it. I quickly realized what had happened, and called AidVantage in an attempt to intercept the transfer, and was told to contact the bank directly, which I did. XXXXXXXX XXXX informed me that AidVantage had in fact requested a stop transfer, but then had immediately initiated a second request for the funds, and this was successfully processed. AidVantage has never acknowledged this second request. Nevertheless, XXXXXXXX XXXX deducted {$500.00} + {$38.00} overdraft fee from my account, leaving it {$530.00} in the hole. I immediately deposited {$530.00} into my XXXXXXXX XXXX account from my XXXX XXXX XXXX XXXX Account, and contacted AidVantage by phone and written correspondence to confirm the payment and determine how it would be processed. AidVantage gave me different responses, depending on the day and who I was talking to. Sometimes they acknowledged the error and would tell me a check had been cut and mailed. Sometimes they would tell me that no payment would be credited or refunded, because I had stopped payment. When I contacted XXXXXXXX XXXX for proof of the XXXX transaction, they furnished me with a trace number and an account statement. The only transaction on my account statement is the {$500.00} deduction by AidVantage. I shared these documents with AidVantage in XXXX, and was told, in writing, that they had been received and would be investigated. I was told they would be investigated more than half a dozen times in XXXX and XXXX, and every time the conclusion they reached was the same - because you stopped payment, there would be no refund or credit. When I have asked for a response to the evidence of the trace number, they have ignored me, and continued to respond that because I stopped payment, no payment would be credited or refunded. All of this was happening while I was working away from my home as a traveling nurse, so when I returned home in late XXXX, I visited a XXXXXXXX XXXX branch in my town and explained the situation to them. With the help of a bank manager, we called AidVantage and inquired about the transaction and were told a refund would be coming, but would take 12 to 14 weeks. So, I waited. Then, after 14 weeks, I called again. This time the story reverted back to the old you stopped payment, so no credit or refund is owed. When I bring up the detail of the trace number and account statement, I am asked to provide these documents a second time, and promised that they will be used to investigate the matter. I provided the documents. Today, XX/XX/22, I received yet another reiteration of the tires response that because I called and stopped payment, no payment occurred. There is no response to the documented trace number or account statement. I am at wits end, and would like assistance in sorting this matter out. I am currently out {$1000.00} for my attempt to accelerate my debt repayment. To resolve this issue, I would like AidVantage to provide me a refund, and if possible, I would like to be appointed a different loan processor.

Company response to consumer: Closed with monetary relief