Consumer complaint received 2016-08-01
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Trouble with how payments are handled
Company: HEARTLAND PAYMENT SYSTEMS INC (PA)

I appeal to the Consumer Financial Protection Bureau with the belief that you can hold banks, lenders, and other financial companies accountable for their actions and ensure they treat borrowers fairly. 

My Claim As I understand it, lenders are required to inform borrowers when their loans have been sold and the new holder of the loan ( or servicer ) is required to inform the borrower that the loan has been purchased. Speaking to the actions of Campus Partners, the way my loan payments have been sporadically applied over the year -- with some payments being debited from my bank account twice in one month -- and then abruptly dropped as of late is unacceptable. I ask Consumer Financial Protection Bureau to look into Campus Partner 's mishandling of automatic fund withdraw, of the XXXX XXXX XXXX XXXX transfer and the inadequate handling of their notifications to borrowers. 

Events that led to delinquency I attempted to use the Campus Partners site three times in the past two months. Each time I received a cryptic message that refers to site maintenance and encourages the user to try the site again later. There was absolutely no indication significant changes to Campus Partner 's status took place -- just an abandoned web site. I only learned of the service transition with a notice of default from XXXX. To make matters worse, historically, it seems like Campus Partners haphazardly withdraws funds from my bank account. I see the money being withdrawn from my account but with little rhyme or reason. And by the time I noticed the erratic withdraw pattern, XXXX does n't acknowledge the payments made. For my delinquency, I was told I owe for two months, due for XXXX 2016, but my bank shows the last payment was taken from my bank account in XX/XX/XXXX. How can this be? I enrolled in the automated payment method years ago and have never been delinquent in my payments. What 's more, I have an excellent credit standing and would never jeopardize that status by neglecting my student loans. Mishandling of this service transfer by one or all financial parties involved stands to compromise the average borrower 's ability to maintain good credit and function financially. 

Please understand, the initial lack of written notification -- with a significant time gap which resulted in a default notice -- on the part of both Campus Partner 's and XXXX should not go unpunished. I thought I was uniquely affected by this mishandling but I discover countless people online who faithfully upheld their financial obligations with Campus Partners and now suddenly struggle to bring their loans current again. They are worried and scared. They do n't know how they will satisfy their delinquent account and still eat and put gas in the car. 

The lapse on the part of Campus Partner 's and XXXX to notify borrowers -- well before so many became delinquent -- is a professional, procedural mishandling and borrowers should n't have to suffer for that business error. 

Without a timely, adequate notification of the servicer transfer, coupled with sporadic and deceiving withdraws from my bank account, I should not be penalized and the loan should be brought current.