Consumer complaint received 2024-04-04
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: DISCOVER BANK (FL)

( PLEASE SEE FULL PDF WITH TEXT OF COMPLAINT UPLOADED - ALSO COPIED BELOW ) This matter arises from student loans I borrowed from Discover Student Loans for tuition and housing costs while enrolled at XXXX University ( formerly XXXX XXXX, of XXXX NY ) disbursed for years XXXX and XXXX. My original loan documents are attached as Exhibit A. 

There are two loans, XXXX XXXX and XXXX XXXX, referred to together as the Loans. XXXX XXXX was originally disbursed as {$10000.00} split between {$5000.00} on XX/XX/XXXX and {$5000.00} on XX/XX/XXXX. XXXX XXXX was originally disbursed as {$4900.00} split between {$2400.00} on XX/XX/XXXX and {$2400.00} on XX/XX/XXXX. The Loans have since been combined into one account for servicing, referred to herein as the Account. 

I began making payments towards the Loans on XX/XX/XXXX. See attached Exhibit B for the transaction histories. 

Around XX/XX/XXXX, my Account balance showed {$13000.00} due. It seemed unusual that the Loan balances were essentially the same as their original disbursement of {$14000.00}, despite the fact that I had been paying for over six years, for a total paid back to date of : Loan XXXX {$6600.00} total paid back ( {$2600.00} principal + {$4000.00} interest ) at an alleged interest rate of 9.500 % variable Loan XXXX {$4100.00} total paid back ( {$1200.00} principal + {$2800.00} interest ) at an alleged interest rate of 8.740 % fixed See attached Exhibit C for the XX/XX/XXXX Account snapshot. 

For an opportunity to review the Loans, I called Discover to request and was granted a XXXX forbearance on both Loans. During this phone call with Discover in XX/XX/XXXX I requested the full payment histories for both Loans. I specified needing the interest rates I have been charged and paying for the duration of the lives of the Loans. In response, the Discover representative joked with me about how complicated interest rates can get and offered to do a deep dive into the loan documents. I declined, as I had already been on the phone with other reps or on hold for more than an hour. Discover mailed me documents in response which are attached as Exhibit D, which clearly do not include the interest rate information. 

I messaged Discover on XX/XX/XXXX requesting new payment histories showing the interest rates, as their previous response omitted this information. Discover declined to provide the documents and suggested me to call them instead. See Discovers response attached as Exhibit E. 

I messaged Discover on XX/XX/XXXX stating that I was unable to call and that my request should be straightforward enough for them to provide a response. They agreed to mail documents. I also requested an amortization schedule. Discover refused to provide it on the basis that because my Loans were in forbearance at the time of my request, therefore this loan status rendered Discover unable to provide amortization schedules for my Loans. They did provide interest rate changes as a standalone generic chart, but not the actual rates applied at each and every statement payment I have made, as Ive requested. See attached Exhibit F for their response. 


I messaged Discover again on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX each time requesting the interest rate histories for each and every payment made on my Loans specifically. Discovers responses, attached as composite Exhibit G, all suggested I call them instead. Discovers final response therein stated my request for additional interest rate information would not be completed unless I called them again. 

Both Loans came out of forbearance in XX/XX/XXXX. 

As the Loans entered back into repayment, I messaged Discover on XX/XX/XXXX requesting, once again, the amortization schedules for both Loans. The schedules provided in response, both attached as Exhibit H, omit the interest rates entirely. 

I messaged Discover on XX/XX/XXXX stating in plain terms that I must see the interest rates that Discover has applied at each and every payment I have made on both of my Loans in this Account since origination through present date. 

As of the date of this Complaint, I have heard no response from Discover regarding the interest rates. Discover has failed and refused to provide me with my borrowers interest rate information despite my repeated requests over the past 7+ months. 

As of XX/XX/XXXX, my Account balance showed {$14000.00} due. 

XXXX XXXX original amount was {$10000.00}. The current balance is {$9700.00} with 116 payments allegedly remaining, despite {$6700.00} having been paid to date. 

XXXX XXXX original amount was {$4900.00}. The current balance is {$5000.00} with 116 payments allegedly remaining, despite {$4100.00} having been paid to date. 

Discover alleges that I still have 116 payments remaining before the Loans will be paid off, in their estimation around the year XXXX. 

My current Account snapshot ( as of XX/XX/XXXX ) is attached as Exhibit I. 

It is clear there is something wrong with my Loans. The original disbursement amounts, alleged interest rates and changes, Discovers refusal to provide specific information, compared against my payments made to date ; none of it makes sense. The math does not calculate. Perhaps there was an issue in the servicing of my Loans. My balances should be much closer to zero ( although I can not calculate the exact amounts they should be, as Discover has refused to give me my interest rates applied for the payments Ive made, and the generic rate change table does not add up either ). This is predatory and punitive against student borrowers, a vulnerable class. 

With this Complaint, I am requesting that Discover Student Loans reduce my total Account balance to more accurately reflect the true Loan balances based on my payments made and the Loans terms, and provide me with a reduced payoff letter, as I have suffered thousands in financial damages having paid on these Loans whose balances have effectively never changed. 

Thank you, XXXX XXXX XXXX