Consumer complaint received 2017-10-19
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Navient Solutions, LLC. (CA)

My federal and private student loans are handled by Navient. I have been paying regularly using a debit card for many years. there has never been a problem with my debit card going through. 

About 4 months ago, all of a sudden, and despite my being in an automatic-debit program, Navient stopped initiating payments on both my private and federal loans. When I called to see why, I received no valid response. 

After a few weeks of calls, I put two and two together, based on different information I was getting from different representatives, and realized : 1 ) Navient was no longer taking payment via credit card, and 2 ) FOR SOME REASON, EVEN THOUGH I WAS USING A DEBIT CARD, THEIR SYSTEM WAS MISCLASSIFYING IT AS A CREDIT CARD, AND THEREFORE REJECTING IT. As a result of this, I could not pay from my bank account either via routing and account number, or debit card number, because my account and card had been blocked. 

The department I was dealing with at this point, said whatever documents or measures I took to correct my issue with the bank account would be sent and apply to both my Federal and private loans. The department also said that an overdue payment would not hit my credit for 90 days.

I spent significant time trying to rectify the situation ( 20-30 calls, if not more ). I even went to my bank, to get a letter issued, to provide proof that I had a bank account, that it was mine, and that it could make payments. I received this letter and faxed it THREE TIMES to Navient between early XXXX and XXXX XXXX, XXXX. Each time I faxed it, I would wait a few days, and then call to follow up. I was repeatedly told that it did not go through. As a result, on XXXX XXXX, XXXX, and despite Navient staff 's initial refusals to provide me with an email address to send my bank 's letter to, they finally did. It is attached. I WAS TOLD THAT WITHIN 72 HOURS, THE LETTER WOULD BE PROCESSED, AND I WOULD BE ABLE TO USE MY BANK ACCOUNT TO MAKE PAYMENT. THIS HOWEVER NEVER HAPPENED. 

Because my bank account was never allowed to make a payment, I had my wife get on a call with Navient, and I, and make a payment towards my federal loans. I was then told my private loans would not be reported to credit for 90 days, and so we waited a few more days, to see if my bank account information would be processed, before making the private loan payment. 

Even though 90 days has not gone by, I have come to find out my private loans have been reported to my credit, as well as my co-signors. 

I am completely at a loss regarding why Navient misled and caused so much confusion, with respect to a FORM OF PAYMENT I HAD BEEN USING FOR YEARS. This was never a credit card, it was always a debit card that I had used. I am also at a loss regarding why Navient precluded me from making payments using my bank account information, and misled me by saying that if I got a letter from my bank confirming the account was mine, that I would then be allowed to make payments again but that this never occurred, and I was never allowed to make payments. I am also confused regarding why Navient misled me into saying that my private loan would not be reported to my credit for 90 days, yet they reported it prior to. 

These activities are incredibly harassing, and disrespectful towards consumers. To date, I have not received a solid answer from Navient, who refuses to take the ding off my cosignor and my credit.