Consumer complaint received 2015-12-01
Company: DISCOVER BANK
State: PA
Product: Student loan
Sub-product: Non-federal student loan
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint:
Loans originated with XXXX for Private Student Loans for University of Colorado XXXX, CO beginning XX/XX/XXXX. There were a total of XXXX loans which were bundled together under the same account. The loans were sold to Discover and as of XX/XX/XXXX I began having repayment issues : i.e. lost payments, sending certified checks that were unaccounted for, no explanation as to how my money was being misguided, late fees, harassing phone calls to settle late fees, etc. I finally received a statement, XX/XX/XXXX which stuck out due to the contrasting difference of the letter head. This allowed for further investigation after noticing only XXXX of the XXXX loans were listed. Then I compared that statement with the previous statement and discovered that there was a completely different customer ID for these XXXX loans. The original customer ID contains Account XXXX with loans XXXX, XXXX, and XXXX. After contacting Discover Student Loans about this, multiple times, I was told that they had no idea where this mysterious account came from and they had no record of any such customer ID number and I need to talk to XXXX. However, the letter head and contact info is from Discover Student Loans with THEIR address. I am still in the dark about this additional customer ID number with was created with the incorrect number of loans, then how it mysteriously disappeared, yet my money was applied to that customer ID back XX/XX/XXXX. The beginning of a long drawn out domino effect which sent all of my original and true loans into default status. I sent the correct amount for the loans following that, yet I still consistently recieved past due notices of random amounts. When I questioned them about this they said it was n't applied right and I still owed them. I foolishly paid more money, yet have had no resolution. I stopped paying DSL as of XX/XX/XXXX as I do not know where my money is going. They will not sent me an itemized list of payments and how/where they were applied when received by their payment processing center. I was told that I need to get a remittance report from my bank showing I made payments. I even sent them copies of my bank statement as well as images of the checks, with THEIR stamp on the back, and they would not consider that sufficient proof that I was making payments. I not have my account going to collections because I refuse to pay until they tell me what happened with this mysterious account, how it was created, and why no one can give me information about this account. I need help with this situation as I have contacted everyone possible to resolve this with DSL. However, all I am given is a supervisor who will not provide a name of a superior officer of the student loan department. I was told that they do n't really have specific email addresses or contact numbers. Now I understand that the lawsuit is probably making it impossible to get the truth out of this financial institution. This needs to be stopped so they do n't ruin other peoples lives and financial history over their own selfishness to cheat their consumers out of their money.

Company response to consumer: Closed with explanation