Consumer complaint received 2018-02-21
Company: CommonBond, Inc.
State: IL
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:
Commonbond solicited me in XX/XX/XXXX, with a letter, claiming to consolidate my total student loan balance, under a lower interest rate. 

I submitted my paperwork online electronically, and when it came to verifying my loan amounts, the Commonbond website reported that it had retrieved the information electronically, and that no further documentation would be needed from me. I signed the promissory note with the company on XX/XX/XXXX. 

I was notified through my Commonbond account, that the loan payment would be dispersed to XXXX on XX/XX/XXXX. At that time, I expected that a check would be sent for the total payoff amount, to my previous lender which did not occur. 

On XX/XX/XXXX, XXXX ( previous lender ) withdrew {$200.00} from my bank account, for my usual student loan payment. I contacted XXXX to verify that a payment had even been sent from Commonbond, for a total loan payoff.. I was informed that XXXX applied a check for {$36000.00} on XX/XX/XXXX. I was also informed, that I still carried a current balance with XXXX, of {$250.00} ( that accrues XXXX cents in interest daily ). 

On XX/XX/XXXX, I spoke to " XXXX, '' at Commonbond. I informed him of my dilemma. I explained that I was disappointed that a balance remained with XXXX, and that I was completely unaware of it. I informed him that it was gaining interest charges daily, and that this was unknown to me. I explained that I did not anticipate the additional payoff expense, which felt like a penalty, and burden to me. I explained that I had already inquired with Commonbond, prior to signing documents, regarding penalties and fees, of which I was informed, there were none. XXXX informed me, that Commonbond verifies the loan amount owed, through a credit reporting agency, and sometimes there is a discrepancy between the payoff amount and the interest being accrued, until it is paid off. I explained that I should have been informed that there would be an additional expense owed on my part. I expect that when you payoff a loan, the current and exact payoff amount is verified, and then a check is sent. This was not how the company Commonbond / XXXX XXXX has handled my account. XXXX explained that if I sent a screen shot of my 6 month payment history and my current balance, he would forward it to another department, for resolution. 

Later on XX/XX/XXXX, I received an email from " XXXX, '' at Commonbond. To my disappointment, he gave me two options, which again, felt like penalties : 1. ) To put my account with Commonbond into forbearance, to allow me the time to close my previous account balance with XXXX. 
2. ) Complete a new application with Commonbond and refinance a new loan, with the remaining balance applied, from my previous lender. 

It is unfair, to put my current account / loan terms with Commonbond in forbearance, and delay the payment and progress, as well as incur additional penalties or fees associated with forbearance. So I refuse this offer. 

As well, refinancing the loan, and adding the amount onto a new loan, to pay on for the length of the loan, isn't a sound fiscal decision either. I refuse this offer. 

I feel the current offers from Commonbond, to resolve this issue, only present further expenses to myself in the long term, and allow Commonbond to profit from their error. For these reasons, I feel deceived and wronged. 

After receiving the email, I followed up with Commonbond the same day. I had questions for the company Commonbond, about forbearance fees/penalties, further the impact that forbearance or refinancing would place on my credit score, and why I was the responsible party, for the amount remaining, although I had been informed, during the application process, that the payoff amount had been verified electronically. 

I was told by a Commonbond representative, that " XXXX '' was unavailable to speak, and that I could respond to his email, or respond in email, that I preferred to speak over the phone.

Company response to consumer: Closed with explanation