Consumer complaint received 2018-03-17
Company: DISCOVER BANK
State: IN
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:
Summary I have student loans that are owned and serviced by Discover. I enrolled back in school on XX/XX/XXXX. Prior to this date the loans were past due 30-60 days. On or before XX/XX/XXXX Discover received notification that I was enrolled in school at least half time. On XX/XX/XXXX my mother ( co-signer ) made a payment for the amount due and all loans were brought current. BetweenXX/XX/XXXX and XX/XX/XXXX Discover processed the deferment for all but one of the loans as it was out of deferment time. Upon placing the loans in deferment Discover or Discovers systems reversed and misapplied the XX/XX/XXXX payment, causing the loans to show past due. Since bringing this to their attention no later than XX/XX/XXXX Discover has been unable to correct the issue claiming know system errors or system would not allow due to status. Collection past due loans has continued dispite multiple attempts to inform and correct issue with Discover. 

Detail : Prior to XX/XX/XXXX my loans were past due because of financial hardship related to a chronic medical condition and extensive missed time from work. 

XX/XX/XXXX I began classes at XXXXXXXX XXXX XXXX University ( XXXX ). After completing the first week of classes I began to explore my in school deferment options for my private student loans ( including Discover ). 

XX/XX/XXXX I provided the Registrars office at XXXX Discovers School Enrollment Verification Form which was provided to Discover there after. 

XX/XX/XXXX XXXX XXXX XXXX sent notification to Discover of my enrollment. In subsequent calls to Discover after notification was sent, I was informed it was being processed and would be escalated. 

XX/XX/XXXX Payment in full was made brought account current. Within following days Discover processed/approved deferment. On doing so payment from XX/XX/XXXX was reversed and reapplied to to various loans with no rhyme or reason. Causing loans to show past due Contacted Discover ; was told it would be corrected. 

XX/XX/XXXX Payment reallocation completed. Reallocation made payments even worse. 

XX/XX/XXXX Contacted Discover in the morning to be told a system migration was in progress and caused the payment issue. Transferred to XXXX ( supervisor ) who claimed he or XXXX ( supervisor originally working on issue ) would research and return call. No call was received. 

That evening contacted Discover again, spoke to XXXX who tried to collect on balance due. Then transferred to XXXX ( Supervisor in XXXX ). XXXX indicated their system would not allow past due payment to be applied because of the status of the loans and that this was a known issue they are actively working to resolve, with no ETA.  XXXX indicated Loans XXXX, XXXX, XXXX, XXXX, and XXXX were all frozen and in deferment ; no collection attempts or credit reporting would occur due to the status of loan. Credit was applied to Loan XXXX to bring loan current but nothing could be done for other loans. Arranged for a call back from his Manager ( XXXX ) however no call received. Informed XXXX of my intent to file complaints with XXXX, CFPB, and possible legal action if not resolved. 

XX/XX/XXXX Received notice via email ( see attached ) from Discover attempting to collect on balance of loans in deferment and past due. Contacted Discover again as had not received update and account was still showing past due and no call received from XXXX. Spoke to XXXX, who had no update ; indicated XXXX was out of the office. Call back was requested from XXXX at XXXX, next day. 

XX/XX/XXXX As no call was received from XXXX, contacted Discover again. Spoke to XXXX who tried to collect on balance. Tried to transfer to XXXX who was not available. Transferred to XXXX ( Supervisor - XXXX ). XXXX who is a peer of XXXX and in same office, indicated she would work with back office to get this resolved. Indicated XXXX was not in and requested call next day. 

XX/XX/XXXX No call received due to personal issues with cell service. 

XX/XX/XXXX As no call was received and issues with cell service resolved contacted Discover in early afternoon, hoping being during normal business hours would be easier to resolve. Spoke to XXXX who attempted to collect. Transfered to XXXX who spoke to Deferment Team claimed nothing could be done due to known system error. Had no update from XXXX. 

Later that evening called again to attempt to speak to XXXX to get update. First spoke to XXXX in XXXX   who attempted to collect, was argumentative and condescending, despite mentioning perviously speaking to XXXX and XXXX, XXXX never felt it necessary to involve a supervisor until I specifically asked. Once I asked she attempted to transfer, but sent me into an IVR for XXXX XXXX. 

Called back spoke to XXXX who attempted to collect ; transferred to supervisor. Spoke to XXXX ( Supervisor - XXXX ). Filed a complaint on XXXX. Indicated XXXX did attempt contact on the XXXX but was unable to reach me, and has been in meetings since then. Indicated XXXX would not be in until Saturday or Sunday, but had no update. Indicated multiple people are working on this and will be done quickly ( has already been a month ). She insisted that no credit reporting would be done until 60 days past due and if anything was reported it would be corrected. Indicated agents are collecting on calls in as they are not reading the notes fully. Call was unexpectedly disconnected ; no attempt to reconnect was made by either party.

Company response to consumer: Closed with non-monetary relief