Consumer complaint received 2016-12-30
Company: F.H. Cann & Associates, Inc.
State: NY
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Received bad information about my loan

Complaint:
I need assistance with school loan collections matter concerning the companies XXXX XXXX and F. H. Cann and Associates. 
A ) I consolidated with XXXX XXXX in XXXX, payments towards the loan balance were automatically withdrawn from my checking account monthly. This occurred from the start of the consolidation until XXXX when I became unemployed, consecutive payments were receives from me to XXXX XXXX from XXXX to XXXX. In XXXX, I questioned the remaining balance because the stated balance did not appear to be accurate ( it was {$3000.00} less than I started with ). During the 5 years of repayment ( from XXXX to XXXX ) I did not receive a single statement of payment applied and/or remaining balances. I made multiple requests for an explanation of balance from XXXX to XXXX, this was only provided to me two week ago from a claimed XXXX XXXX ombudsman XXXX at XXXX XXXX XXXX XXXX. See attachment for Payment History Letter. What the payment history letter showed was astounding, payments where applied towards interest and none or mere minimal were applied toward the loan principal ( for example : with a payment of {$100.00}, all {$100.00} was applied to the interest and {$0.00} to the principal. The very next months with another payment of {$100.00}, {$99.00} was applied toward interest {$2.00} towards the principal ). How were they applying payments??? And if {$0.00} is applied towards principal - would I ever finish? {$0.00} one month then {$2.00} the next. According to XXXX, it was a simple interest loan. This was never explained to me before because I would not have consolidated my loans with XXXX XXXX had I understood that I would only be paying interest. Also, there were at least XXXX different interest rates - 5.75 % and 5.25 %. This does not make any sense - is n't the point of consolidating that there would be XXXX balance and XXXX rate?? The prior loan holders prior to XXXX XXXX were XXXX and XXXX. The interest rates were 4.5 %, XXXX and 5.3 % for these loans. When I consolidated the loan, I was told the interest would have been less. Why would I have consolidate at a higher rate that I as paying prior????? This is a practice of Usury. When I graduated from school, I had XXXX single unsubsidized loan, looking at the statements now, which I repaid prior to the consolidation with XXXX XXXX, now I see where there are XXXX unsubsidized loans. They have sliced, diced, divided, flipped and transferred the loan to this and that servicer that I do n't know what 's up and what 's down anymore or how they have the figure that they have. What I know is that I faithfully repaid the loan for 5 years in what I only understood to be graduated payments, not simple interest payments, I asked for payments to be increased twice in the 5 years - now I am not sure if that was done. I was told that interest rate would be lower - it was n't. I was told that if I did direct checking withdrawal, interest rate would even further be reduced - not sure if that was done either. I was and still am being taken advantage of by XXXX XXXX. I would not have consolidated with this company had I been told or understood these terms. 
Let me go on to explain that I entered into deferment from XXXX to XXXX due to unemployment, then XXXX to XXXX while I was a full time student. In XXXX, I again tried to resolve the balance and also obtain history of payment and explanation with XXXX XXXX / XXXX XXXX ( a new company the entered the picture sometime around XXXX or XXXX ) - they simply referred me to their company web site that had none of the information I was looking for. I was basically given no right to question the account. 

B ) F. H. Cann and Associates started contacting me approximately a month ago. They left vague messages on my company 's answering machine in the nastiest manner - stating " XXXX call back this number, '' without stating wh

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