Consumer complaint received 2019-08-28
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: LendKey Technologies, Inc. (OH)

I have several complaints regarding the acts of LendKey and its agents. First, LendKey and its agent failed to give proper information in its disclosure forms associated with the student loans I received from LendKey. Second, LendKey and its agents engaged in deceptive acts and practices in regards to the servicing of my student loans. 

The complaints arise for the following facts : In XXXX, I took out student loans with LendKey to secure funding for my college tuition. That same year LendKey sent me final disclosure forms. The final disclosure forms provided some information regarding the repayment options and repayment periods for the loans. 

In XXXX, I spoke to a LendKey representative about repayment options and refinancing. The LendKey representative informed me that I could not refinance my loans at that time and if I returned to school and received my XXXX XXXX, LendKey would refinance my loans. 

In XXXX, I successfully completed my XXXX XXXX and in doing so incurred {$2000.00}. I contacted LendKey to begin the refinancing process only to be denied. LendKey cited my credit score as reason for my refinance denial. I informed the LendKey representative that LendKey, through another LendKey representative, made representations to me that I would be able to refinance once I received my XXXX XXXX. 

Prior to attempting a refinancing of my loans I was paying on them routinely. Each loan was set on automatic repayments through my bank account. One of the loans was not set to automatic repayment, a LendKey representative contacted me and I paid immediately, requesting that the loan be on the same automatic payment schedule as the others. Continuously each month this was neglected to be done and hurt my credit score. I wrote a letter of request to the creditor explaining the situation but was denied. The negligent acts of LendKey contributed to my credit score issues. 

I have since XXXX XXXX XXXX and contacted LendKey to place my loans into deferment. LendKey stated that it requires barrowers to inform LendKey within 6 months after graduation of their intent to return to school in order to preserve their deferment option. A review of the final disclosure forms shows no such policy. 

Due to LendKeys deceptive acts and failure to disclose required information, I am not longer able to defer my loans and have incurred damages. 

The following are my specific complaints : LendKey failed to comply with Regulation Z by not providing required information in their final disclosure forms. Under Subpart F, LendKey provided a private education loan and is therefore subject the Regulation Z. 12 C.F.R. 226.47 ( c ) ( 3 ) requires final disclosure to disclose, A description of the payment deferral option chosen by the consumer, if applicable, and any other payment deferral options that the consumer may elect at a later time. 

LendKey failed to comply with 12 C.F.R. 226.47 ( c ) ( 3 ) by not disclosing the fact that I needed to inform LendKey of my desire to return to school within 6 months after graduation to preserve the in-school deferment option. Section C8 of the Final Loan Disclosure states only the following, During the In-School Period you have the right to request that I provide Enrollment Verification once per semester. If I fail to provide satisfactory Enrollment Verification within thirty ( 30 ) days of your request, you have the right to end the In-School Period and begin the Repayment Period immediately. Section A8 defines the In-School Period as, " the period beginning on the Disbursement Date and ending on the date which is the earliest of ( i ) six month after I graduate or six months after I cease to be enrolled at least half time in at an eligible school ; or ( ii ) 60 months after the Disbursement Date ... '' Never does the disclosure mention that the barrower must inform the lender of their intent to return to school to preserve the In-School Period. Thus, LendKey failed to comply with its disclosure requirement in Regulation Z. 

LendKey engaged in unfair, deceptive, and/or abusive acts and practices by advising me to get my XXXX XXXX in order to refinance my loans. 

CFPB policy guidelines state that representation, omission, actor practice is deceptive when ( 1 ) The representation, omission, act, or practice misleads or is likely to mislead the consumer ; ( 2 ) The consumers interpretation of the representation, omission, act, or practice is reasonable under the circumstances ; and ( 3 ) The misleading representation, omission, act, or practice is material. 

LendKey represented to me that all that was preventing me from refinancing my loans was the lack of an XXXX XXXX and that upon receiving an XXXX XXXX XXXX LendKey would refinance my loans. The representation was misleading because there were many other factors that would be taken into consideration when I applied to refinance my loans. My interpretation of LendKeys representation was reasonable because this is was my first and only experience with student loans and there was no other information given to me that would call into question my interpretation. The misleading representation of LendKey was material because it caused me to spend time and money on a degree I had no intention of getting otherwise and subsequently caused me to lose my ability to place my loans in deferment. 

Lendkey 's negligent servicing of my loans caused derogatory marks on my credit score. This resulting negative marks lead to the denial of my refinance application with Lendkey.