Consumer complaint received 2016-04-26
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Trouble with how payments are handled
Company: Nelnet, Inc. (WV)

On XXXX/XXXX/2016 I called Nelnet Inc., the servicer of my student loans, to make a payment of {$7900.00} to satisfy loan # XXXX within a group of loans. Days later, I identified that the representative who handled the payment did not properly apply it to the individual loan that was specified during the phone call. I contacted Nelnet once again, and explained the issue. A request was sent to their accounting department to move the payment to the loan I designated, and days later the balance of loan XXXX was updated to reflect a balance of a little more than {$1900.00}. On XXXX/XXXX/2016 I contacted Nelnet to arrange the payoff of loan # XXXX and was told that payments can not be directed towards individual loans within a group, rather payments are made to a group and the accounting department must be notified which loan the payment will be redirected. I submitted the payment online dated XXXX/XXXX/2016, and called in on XX/XX/XXXX to have the payment applied to loan # XXXX. The representative explained that it would take 3-5 business days for the change to take place, and instructed me to call back on XX/XX/XXXX. I contacted Nelnet on the XXXX, and was told that the request was still pending. On XX/XX/XXXX I logged into the online portal and discovered that XXXX # XXXX now reflected a balance of {$3400.00}. When I called in on the XXXX, I was told that an additional request would have to be made to the accounting department, and would take 3-5 business days. 
I believe Nelnet Inc is showing negligence in applying payments in accordance with my directions and misleading me in regards to the amount of debt. I am submitting a formal complaint against Nelnet Inc, the servicer of my student loans, for the violations against the Fair Debt Collection Practices Act for the following reasons : 1. Violation of 810. Multiple debts If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer 's directions. 

2. 809. Validation of debts ( a ) Notice of debt ; contents Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing -- ( 1 ) the amount of the debt ; ( 2 ) the name of the creditor to whom the debt is owed ; ( 3 ) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector ; ( 4 ) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector ; and ( 5 ) a statement that, upon the consumer 's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.