Consumer complaint received 2024-02-14
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services (MD)

Good evening, I have XXXX federal student loans with Edfinancial, a servicer of Federal Student Aid. I am seeking assistance through the CFPB to resolve concerns regarding the gross mismanagement of my student loan account by Edfinancial. 

On XX/XX/XXXX, my student loan was paid in full using a family members checking account. We contacted Edfinancial via phone, confirmed the balance of the account as of XX/XX/XXXX, and a payment was made for the full amount of {$8100.00} via debit card. I received a confirmation email from XXXX on XX/XX/XXXX confirming the transaction. Funds were withdrawn from the family members checking account on XX/XX/XXXX. 

On XX/XX/XXXX, a payment of {$22.00} was withdrawn from my bank account via autopay to Edfinancial. On or about this time, I contacted Edfinancial via phone with concerns about the payment made, as my account was paid in full on XX/XX/XXXX. A representative assured me that since the payment had occurred within the last XXXX business days, it may take time to reflect on the account. I was transferred to another representative who confirmed that the payment was reflected on their end, but again, my student loan account had not been updated. 

On XX/XX/XXXX, another payment of {$22.00} was automatically withdrawn from my bank account from Edfinancial via autopay. 

On or about XX/XX/XXXX, I contacted Edfinancial again via phone with concerns that payments were still being withdrawn from my account and my account did not reflect that my loan was paid in full on XX/XX/XXXX. I was advised to attach documentation to my account regarding the confirmation of the payment made on XX/XX/XXXX for {$8100.00}, or any documentation supporting my claims. I was also advised to turn off autopay, so payments would stop withdrawing from my account for a payment I did not owe. The representative confirmed the payment was reflected in their systems, however, my account balance was not updated. I asked for the concern to be escalated for handling, and was informed the concern was escalated and would be resolved in XXXX business days. It is noted that Edfinancial failed to contact me despite assurances that I would be contacted in XXXX business days. 

After the call, I added two documents to my Edfinancial account as instructed. This included the confirmation email I received from XXXX confirmation regarding the payment of {$8100.00} made on XX/XX/XXXX. This also included a bank statement confirming {$8100.00} was withdrawn from the family members checking account on XX/XX/XXXX by US DEPT OF EDUCATION XXXX XXXX. It is noted that in order to upload documents, Edfinancial requires borrowers to select from Edfinancials list of documents to upload and choose the most relevant category prior to submission. After reviewing all XXXX options, the closest category representing both the payment confirmation email and the bank statement was Cancelled Check, Money Order, or Bank Statement. Both documents were uploaded securely to Edfinancial on or about XX/XX/XXXX with this description. This serves as an example of another barrier Edfinancial has in place to complicate simple interactions with their borrowers. 

It has now been 76 days since my student loan accounts were paid in full, and Edfinancial has failed to properly report my account as paid in full as of XX/XX/XXXX. Additionally, I have not received reimbursement for both payments made on XX/XX/XXXX and XX/XX/XXXX for a total of {$44.00}. Edfinancial is currently reporting my account as past due, and my account has accrued interest since XX/XX/XXXX when my account was paid in full. Edfinancial has also sent a false XXXX XXXX XXXX XXXX statement for payments made in 2023, as they have failed to accurately report payments made on my account in 2023 in a timely manner. 

I am concerned that I have exhausted all reasonable options available to myself as a borrower to resolve my concerns through Edfinancial, and Edfinancial will continue to negatively impact my financial future due to their failure to report accurate and timely information. My interactions with Edfinancial to date have not garnered confidence that they will treat the payment made on XX/XX/XXXX for {$8100.00} to my student loan account with anything but reckless disregard. 

I can provide documentation to support all claims made in the narrative above. Thank you for reviewing my complaint.