Consumer complaint received 2018-10-04
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: TRANSWORLD SYSTEMS INC (VA)

I have been in active repayment via autopay ( ACH ) with my Health Professional Student Loan ( HPSL ) from XXXX University and serviced by XXXX since XXXX. On XX/XX/XXXX, XXXX took over XXXX as the loan servicer and continued to withdraw funds from my account via ACH without issue. I received a late fee notice in XX/XX/XXXX that a payment was missed and I spoke with a representative on XX/XX/XXXX @ XXXX who processed the payment immediately. The next scheduled payment was for XX/XX/XXXX and I received a statement on XX/XX/XXXX stating " The total amount due plus {$500.00} is schedule to be automatically withdrawn from your account on XX/XX/XXXX. '' The amount due on the statement is {$710.00} for the HPSL loan. It is clearly indicated on the statement as the " Total amount due '' and the note on the statement clearly states " The total amount due plus {$500.00} is schedule to be automatically withdrawn from your account on XX/XX/XXXX. '' This led me to believe that everything was back on track with the autopay agreement. Unfortunately, on XX/XX/XXXX, I received another notice that the payment due on XX/XX/XXXX was never processed by XXXX and that I was now TWO months past due and this was reported to the credit bureaus. I have made multiple attempts to work with XXXX  directly but with no progress. I was told via email on XX/XX/XXXX by XXXX that " We didnt stop your automatic payment, it automatically stopped due to the transition of both servicers. '' and that is why payments didn't go through for XXXX or XXXX. However, this transition occurred on XX/XX/XXXX and since that date, FIVE automatic withdrawals for this account were successfully completed by XXXX until XX/XX/XXXX. Furthermore, their website clearly states that borrowers do not need to do anything if they are currently enrolled in autopay through XXXX, as I was. 

So, I have been enrolled in autopay with XXXX since XXXX. The website states that after the transition on XX/XX/XXXX, borrowers do not need to re-enroll in autopay to continue with autopay. Every due date since XX/XX/XXXX had successfully accepted payment via autopay ( proving the representative wrong in that I needed to re-enroll because it automatically stopped ) until XX/XX/XXXX when I discussed the issue with a representative. They now state the representative told me in XXXX that I needed to re-enroll and in XXXX, my billing statement for XX/XX/XXXX clearly confirms that I am enrolled in autopay. I never receive a notice in XXXX that the account was past due and on XX/XX/XXXX, I'm told the account is two months past due and a negative report was submitted to the credit bureau. I have not received any answer as to why they were able to process FIVE separate autopay withdrawals after they took over servicing the loans in XXXX although they state in an email that " We didnt stop your automatic payment, it automatically stopped due to the transition of both servicers. '' They can not explain why my statement clearly states that the total due will be automatically withdrawn on XX/XX/XXXX and have in fact requested a copy of that statement ( which I sent them )! Also, they can't even explain why there is actually an overpayment resulting in a credit balance of {$93.00} to the other loan being serviced on this account! Everything about how they handled this since XX/XX/XXXX has been a complete debacle and the most insulting part is they refuse to remove the negative reporting as they state " we practice fair and accurate negative reporting ''.