Consumer complaint received 2024-10-01
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services (OK)

I previously submitted a complaint, complaint # XXXX, to which XXXX finally responded today by refusing to admit any error or wrongdoing and simply delaying my next payments until next year. I am submitting a new complaint, although this is a continuation/lack of resolution of my original case. Summary of original complaint : My loan was transferred from servicer XXXX to servicer XXXX in XXXX of XXXX. At the time of the transfer, my account was in a paid ahead status through XX/XX/XXXX as a result of a large lump sum payment posted to XXXX on XX/XX/XXXX in the amount of {$8400.00}. My remaining billing periods with XXXX ( XXXX XXXX ) all reflected statements with XXXX balance and next payment due date of XX/XX/XXXX. When my loan transferred to XXXX, XXXX reversed these payments, then applied the lump sum payment from XX/XX/XXXX to the outstanding loan balance instead of applying it towards future monthly bills. I became aware of this immediately upon creating an account with XXXX once the servicer transfer was complete and found my account reflected a next bill due date of XX/XX/XXXX. I immediately contacted them by email, account messaging, and phone to correct the issue. I was told multiple times that there was nothing they could do about it. Finally someone told me they could initiate an investigation into my account details in order to correct the error in payment application. That was in XX/XX/XXXX. I uploaded all necessary supporting documents and submitted my complaint with XXXX, however XXXX did nothing to investigate or resolve my claim. Today I finally received a response because on XX/XX/XXXX I filed a complaint through the CFPB, however the response is unsatisfactory and does not resolve the issue. Instead of crediting my account with the monthly payments I paid ahead via lump sum, they placed my account in forbearance through XX/XX/XXXX. I do not want payments stopped, I simply want my account corrected to reflect the money I paid towards my monthly bills for XXXX. This significantly impacts me, as I am enrolled in the XXXX program and the monthly payments count towards my XXXX payment requirement for loan forgiveness. I need the months I paid ahead to be reflected as on time monthly payments, as XXXX applied them. The resolution they have suggested today is akin to stealing my money. They are a financial institution and it is my understanding that they are bound by 12 CFR Part 1005 - Electronic Fund Transfers ( Regulation E ) Subpart A 1005.11 Procedures for resolving errors which states : " A financial institution shall investigate promptly and, except as otherwise provided in this paragraph ( c ), shall determine whether an error occurred within XXXX business days of receiving a notice of error. The institution shall report the results to the consumer within XXXX business days after completing its investigation. The institution shall correct the error within XXXX business day after determining that an error occurred. ( XXXX XXXX XXXX day period. If the financial institution is unable to complete its investigation within XXXX business days, the institution XXXX take up to 45 days from receipt of a notice of error to investigate and determine whether an error occurred, provided the institution does the following : ( i ) Provisionally credits the consumer 's account in the amount of the alleged error ( including interest where applicable ) within XXXX business days of receiving the error notice. If the financial institution has a reasonable basis for believing that an unauthorized electronic fund transfer has occurred and the institution has satisfied the requirements of 1005.6 ( a ), the institution XXXX withhold a maximum of {$50.00} from the amount credited. '' XXXX is in direct violation of this regulation and this will be my final attempt at resolution before I seek legal representation and file a suit for not only correction of my account but also additional damages. I am attaching the records from XXXX indicating my paid ahead status through XX/XX/XXXX which can be found on page XXXX of each monthly billing statement. I am also attaching evidence of XXXX 's complete disregard of federal regulations governing resolution of errors for a period far exceeding 45 days, during which no interim solution was offered and when I requested an interim solution it was denied- I also have record of filing an official complaint through XXXX XXXX case # XXXX, however that case is no longer available in my FSA account. I do have a confirmation email from XXXX confirming the date of my complaint filing as XX/XX/XXXX and the eventual email notifying me of the response to the case, which I will also include here.