Consumer complaint received 2021-02-07
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Problem with customer service
Company: DISCOVER BANK (MD)

This is in regards to a student loan with Discover Bank. In XXXX, my co-signer filed chapter XXXX bankruptcy, putting this loan in default. I contacted Discover and learned how I could continue to make on time payments on the loan in good faith and in order to decrease the balance. The bankruptcy cleared in XXXX, and I contacted Discover to learn how I could pay the remaining balance of {$860.00} before it was sent to collections. I was advised where to mail payment. I requested something in writing stating that this payment would satisfy full payment of the loan. I was told that this was not possible, but that the account would be updated if I mailed payment. I promptly mailed a check, along with a letter requesting that someone send me documentation upon receipt confirming that this was payment in full. They cashed the check in XX/XX/XXXX ( see attached photo ) but they never sent me documentation of payment in full. I contacted them several times about this and was assured it would be taken care of. I continued to wait for documentation, only to find that after cashing my check for the balance, they reported the account as being in collections on my credit report and that there was an outstanding balance of {$860.00}. My credit took a substantial hit. No one in customer service could explain this or correct it. I was promised calls back after looking into things, and these calls never came. 

After all this, and 5 months later in XXXX of XXXX, they mailed me back a check for the {$860.00}. They never corrected my credit report. I contacted them again on several occasions and was instructed to reach out to someone named XXXX XXXX. I did so and she never returned my calls or emails sent on XX/XX/XXXX and XX/XX/XXXX. I did confirm with another Discover customer service rep named XXXX that the contact information was correct. I called and spoke with them more times than I care to count to resolve this, and no one could explain to me what the problem was or why they paid me back. They told me to mail another check, and I said I would do this if they could first a ) tell me what went wrong and the first time and b ) send me something in writing saying that payment of this amount would cover the balance in full and c ) fix their reporting to the credit bureau. They never did any of this, and I simply waited for the account to fall off my report, and took the hit to my credit. I again contacted Discover in XXXX of XXXX asking for documentation that I could pay the remaining balance and be done with this debt, but the customer service representative requested additional days to look into the issue, and never called me back. 

In XXXX of this year, XXXX, I was contacted by a collection agency for the balance of XXXX on behalf of Discover. I was concerned that paying this would reopen the account on my credit report, but certainly did not and do not trust anyone at Discover to give me a straight or accurate answer about this, as they so grievously misdirected me up to this point. I paid the collection agency the full balance promptly, in hopes that this will finally resolve what has been a very frustrating and unfortunate experience. I received legal advice to file this complaint in order to avoid any further damage to my credit. I will never bank with Discover for any purpose again for this reason, and hope that this might help someone else in a similar predicament.