Consumer complaint received 2024-01-31
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: TRANSWORLD SYSTEMS INC (VA)

On XX/XX/XXXX, I requested a full amortization schedule detailing how my payments were being applied, a second full audit of my account due to being charged for 31 days instead of 30 days according to the 30 days in that statement period, one question asking why my previous and new balances were not reported correctly on my recent statements, and a second question asking about the numerous reversals of interest accruals. I was given an inaccurate amortization schedule ( my mom informed me as she works for a financial institution ), a system-notated transaction history, and a letter telling me what I had received and who to call if I have any questions, which was not necessary ). My lawyer requests all communication be in written format and fully detailed. 

First, I am frustrated because the amortization schedule sent to me shows my payments are to be applied to interest and principal. However, they are applying my full payment ( minimum plus extra ) to interest. For example, I was charged {$1400.00} in interest from XXXX XXXX XXXX and my minimum payment is {$1700.00}. For this statement period I paid {$1800.00}, so why is all of it going to interest. What makes this worse is being given a schedule that shows a portion of my payment goes to principle after being applied to interest. My agreement says, " All payments will be credited first to any other charges other than principal and FINANCE CHARGES, then to FINANCE CHARGES, and finally to the outstanding principal balance of my account ''. Seems self explanatory, however, my lender seems to take this as paying my unpaid interest until zeroed, then my next set of payments will only be applied to capitalized interest, and finally my next set of payments will only be applied to the principal balance ( as per my co-borrowers phone call in XX/XX/XXXX ). Not sure I see how this loan can be paid off in XXXX years or whatever they claim my term to be as according to UAS I gave up a year due to asking for an in-school deferment, which is a whole other issue I have with them. All my other student loan lenders apply my payments to interest and what is left goes to principal. If my interest is around {$1400.00} and you are asking me to pay close to {$1800.00}, where is the estimated remaining {$400.00} going. 

Second, none of my questions were answered from my XXXX request. I have no idea why the system reversed the accrued interest for various days. The only thing provided, Im assuming in regard to this topic, was a system-notated transaction history XXXX document, which had no written explanation. 

Third, the only information I have on the reported balances in my statements is from a phone call my co-borrower made in which they told her the balances on the statement are not important. However, my mom tells me by law they have to be reported and must be accurate. As a result, I have had to complete my own audit and calculations so I can make sure my payments are not being pocketed and my balances are correct Im not sure UAS isnt pocketing my payments or that my balances are correct. 

I also would like to know how the interest was capitalized in XX/XX/XXXX. UAS says {$36000.00} was capitalized, but the total interest charged before XX/XX/XXXX was {$40000.00}. So, what dates were used for the interest capitalization? How did UAS get {$36000.00}? 

I have determined the people at UAS must not have finance degrees and must not know anything about amortization schedules and how payments are to be applied. I hate to think about what else in my agreement has been violated other than applying payments incorrectly and giving me a forbearance that was not applicable to my situation of being in school according to my agreement. If you can not answer my questions or complete my requests, you should tell me so I can find someone who can.