Consumer complaint received 2018-09-18
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Student Loan Debt Agency (FL)

I had a defaulted XXXX XXXX Student loan in which XXXX XXXX XXXX XXXX XXXX ( XXXX  ) took over around XXXX. They begin to garnish my wages due to the default,15 % of disposable income was garnished per pay check. In XX/XX/XXXX I was aware that the loan would finally be paid off soon. I called XXXX and asked for the balance. I was advised that my loan was almost paid off, as I only owed {$290.00}, Since on average they were taking apprx. {$210.00} per check this meant I would be paid in full in apprx 1 mo, as she advised that was not the final payoff amount due to monthly interest charges. She stated to call back after my next paycheck to check the balance. I called 2 weeks later and was advised that I only owed apprx. {$80.00}. I inquired if {$80.00} would be the amount taken out and was advised I would have to call my HR department and advise them to adjust the amount. I contacted my HR department and was advised that they are required by law to take 15 % of my disposable income until they received notification that the loan was satisfied. I called XXXX back and was advised that a letter had been sent to my employer advising of the adjusted amount. The final deduction was made for apprx {$290.00}. I contact XXXX  and was advised that a refund check would be sent to me. I contacted my HR department who confirmed that they had not received notification to stop the garnishment and it would occur unless they receive a notice of release. I called XXXX back and had them fax a letter to my HR dept. I'm not sure why I would have to do this. At this point they had 2 weeks to notify my employer to stop the garnishment. After several weeks I receive a call from XXXX. I only know they called me due to having caller ID, no message was left no text message received. I was wondering why they would be calling me since I had received written correspondence confirming my loan was satisfied. I also saw that my loan was reported as Paid in Full to the credit reporting agencies and the garnishment had stopped for several paychecks. When I spoke to XXXX I was advised that was my case manager calling me to advise that I owe a balance of {$280.00}. I asked how since my loan was satisfied. He stated that a payment of {$210.00} was credited to my account 2x by accident. Once the accident was noticed the payment was reversed. I asked if a double payment of {$210.00} was credited why do I owe {$290.00}. He stated interest charges. I asked how could I be charged interest on a mistake that was not made by me nor was I notified of error. He stated finance charges were assessed and I had 30 days to pay the balance or my wages would be garnished. I asked to speak to member of management and was transferred to a voicemail with no name. I left a message and asked for call back which i never received. I called back to follow up on my request to speak to a manager and inquire why I received a letter from my HR department advising that my wages were being garnished for {$490.00}. The rep stated that a payment of {$210.00} was applied 2x by accident then reversed off the account and a refund check of {$170.00} was sent in error and finance charges. She stated that since my account was in default my finance charges are higher than normal. I asked again how can I be charged finance charges for mistakes not made by me. I asked why wasnt i informed of any of this. I at this point I had received 1 phone call with no message left, 0 letters, 0 emails and 0 text. She  stated that there was nothing that could be doon and if i dont pay in full the wage garnishment would occur. I asked for a manager and received the same nameless voicemail. I again requested a call back from the manager and nothing was received. The wage garnishment occurred and balance has been paid. However, I do not feel this is fair and believe I deserve a refund of any amounts stated that was owed be me after being advised the loan was paid full the 1st time. I should not be penalized for XXXX misapplication of payments and poor communication skills.