Consumer complaint received 2023-10-12
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services (LA)

On XX/XX/2023 I made an online payment of XXXX dollars from my XXXX XXXX XXXX XXXX savings account to cover my first monthly payment on my XXXX student loans XXXX and XXXX. Student loan XXXX has an interest rate of 5.840 % and student loan XXXX has an interest rate of 5.310 % The XXXX dollar payment breakdown saw XXXX of it go towards the accrued interest on both of my student loans which paid off all the accrued interest with the remaining XXXX going towards the unpaid principal balance on student loan XXXX. After that payment was made my account showed that the payment had been processed. Student loan XXXX 's principal balance after that payment was XXXX On XX/XX/2023 I checked my Edfinancial account to make sure that the payment went through. But under my Account History I saw that the XXXX dollar payment had been reversed the same day I made the payment on XX/XX/2023. At no point did I get any notification on that day or any other day prior to checking my account on XX/XX/2023 that the payment had been reversed. I checked my bank account and saw that no attempt at transferring the XXXX dollar had been made and verified that with the bank myself. 

That same day I made a subsequent payment of XXXX to cover the additional daily accrued interest on both of my student loans because I had made a calculation mistake when trying to figure out how much total daily accrued interest on both of my student loans I needed to pay off. That is when I had discovered the reversed payment in my account on XX/XX/XXXX. I emailed Edfinancial services to let them know about their mistake in reversing my payment. I went through with the XXXX payment and figured I would just pay the XXXX dollars again the next day. 

XX/XX/XXXX arrives, and I still have not heard back from Edfinancial. So I went ahead and made my third payment of XXXX dollars ( XXXX time I had tried paying XXXX dollars ). I checked my account and saw that XXXX of the XXXX dollars went towards my daily accrued interest on both student loans with the remainder going towards student loan XXXX 's principal balance per my request just like all my other payments. I also saw that my XX/XX/XXXX payment of XXXX had been reversed just like my first payment on XX/XX/XXXX. I had received no explanation as to why this happened again. I did the same review of my bank account and once again found that no payment transfer attempt had been made by Edfinancial Services. 

With my latest attempt at payment processing on XX/XX/XXXX I sent Edfinancial Services a second email correspondence demanding an explanation as soon as possible as to why my payments had been reversed. To the day I am filing this complaint with the CFPB I still have not heard back from Edfinancial on either of my XXXX email complaints. I finally called Edfinancial on XX/XX/XXXX and waited over XXXX hours before I got in touch with XXXX XXXX. We went over the problem of my payments getting reversed and all she could tell me was that Edfinancial had it stated in their system that my payments were reversed for " various reasons, '' but there was nothing beyond that for an explanation. So she reviewed my account to see if the banking information I had entered was incorrect. We verified that all my banking information was indeed correct. The only discrepancy that she noticed was Edfinancial had my savings account mistakenly listed as a checking account. But XXXX XXXX said that shouldn't have any bearing on my ability to make and their ability to receive payments because the bank account the money was coming from was still the same bank account, it was just mislabeled as to what kind of bank account it was. I asked her point blank if my payment was going to get reversed again after this and she told me that because the payment wasn't reversed that same day that I had made it, then it should be fine as more than XXXX business day had passed between when I made the payment and when I called Edfinancial Services. XXXX XXXX had also confirmed that I was not the only one experiencing account payment reversals since Edfinancial Services swapped over to their new website servers. 

I checked my Edfinancial account this morning to see if my third payment finally went through and it was reversed just like the first XXXX payments were. My account said that it had been reversed the same day it was made on XX/XX/XXXX. That was clearly a lie because my phone call with XXXX XXXX verified that my payment was still processing on XX/XX/XXXX. I made the phone call to my bank and found out for the third time that no payment transfer attempt was ever made from my account by Edfinancial Services. I have made a fourth payment today on XX/XX/XXXX. It was for XXXX dollars. I paid off XXXX in unpaid interest on student loan XXXX and what was left of that XXXX dollars went towards the XXXX of accrued interest on student loan XXXX and its principal balance. 

Edfinancial 's site told me that my monthly payment on student loan XXXX would be XXXX while my monthly payment on student loan XXXX would be XXXX. 

So far 11 days ' worth of daily interest has been allowed to accrue on student loan XXXX 's principal balance which should have been XXXX dollars cheaper. Also, in my phone call with XXXX XXXX she said that I would not be able to get any compensation or remedy for Edfinancial 's mistaken reversal of my payments, so I've been left out in the cold ever since getting screwed by Edfinancial Services with not even a single attempt at rectifying the problem despite being notified of the problem by me multiple times.