Consumer complaint received 2017-03-22
Company: LendKey Technologies, Inc.
State: CA
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:
As a recent grad ( out of college XXXX years ) I decided it was a good time to consolidate my student loans into one student loan and explore the possibility of paying lower rate. I decided to approach my private student loan servicer, Lendkey, to apply for my new consolidated student loan. Altogether I included XXXX student loans ( XXXX federal, XXXX perkins, and XXXX with my current servicer, Lendkey ). The process took some time, since I had to gather all documents for the XXXX loans. After, they gave me my agreement to sign and I was happy too see that all my loans were processed into the loan. I got a notification saying that my first payment would begin in XX/XX/XXXX. As I awaited the payment date, I logged into my account to find my existing loan application, and one of my old student loans from Lendkey, with a balance still remaining in the account. The sum was around $ XXXX, but considering all my loan balances were much higher and well into thousands, I decided to investigate the odd sum. After many calls, Lendkey discovered that they made a mistake with processing my loan. They admitted that the mistake was made on their behalf, and that the money put in my consolidating loan was n't equivalent to how much I owed. I called many times trying to see how the mistake could be remedied or if it could be included into my new loan. They said they was nothing they could do since I signed the final agreement with the total loan amount. The gentleman I spoke with told me I had two options, pay off the leftover ( about {$50.00} ) a month, or reconsolidate again. I called many times and spoke to supervisors and various servicing agents that told me that there was nothing they could do, and that it was now on my plate since I signed the final document. I asked them how I could prevent the mistake in the future, and they told me I should check all my numbers when I get the final agreement, even though I put in all the numbers correctly. I kept thinking to myself, if this was my duty, why is there someone out there doing this as a job and getting paid for it? I 'm so upset with XXXX. As someone who trusts a lender to be accurate with calculations, considering this their bread and butter, this mistake is not one to be taken lightly. I 'm going to pursue filing a compliant and I 'm going to investigate any other measures I can take to ensure that this mistake is n't swept under the rug. The solution should n't be put in my hands, but the hands of the servicing company. They made the matter seem like an " oh well '' situation, which makes me even more livid since my loans so heavily tied with my finances and credit score. I understand that my situation could be much worse, however, considering how they handled the matter I recommend that they be investigated. In particular, their servicing process and communication with borrowers. This is not an " oh well '' matter to me since the money is coming out of my pocket. It will take me 7 months to pay off the left over sum, and since my consolidation is at a variable rate with 2 years of a low payment, it turns out I wo n't be paying a low amount due to this mistake. I will advise people to use anyone but XXXX.

Company response to consumer: Closed with explanation