Consumer complaint received 2020-03-03
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (WA)

I previously submitted a complaint ( No. XXXX ) regarding the company 's contention that I owed money on loans the company confirmed were paid in full in written correspondence dated XX/XX/XXXX. I am filing another complaint based on the company 's deficient response to my prior complaint. The company 's response was deficient because it failed to provide me with any explanation or documentation substantiating its claim that the loans are not paid in full. 

In response to my request for documentation, someone named " XXXX '' at the loan servicing company sent me correspondence on XX/XX/XXXX, stating that " the increase to [ my ] current principal balance was due to [ his ] office correcting an adjustment that was previously applied '' and that my account was " adjusted [ ] to reflect accurate amounts. '' Further, " XXXX '' advised me to submit " payment in the amount of {$2200.00} '' and Fed Loan would " backdate the payment to the last payment date of XX/XX/XXXX ... [ ] to prevent additional interest accrual. '' Upon receiving the XX/XX/XXXX correspondence from " XXXX '', I immediately responded and asked him to provide all documentation in support of this alleged " adjustment. '' I have since left " XXXX '' at least two voicemails and another e-mail but he will not respond to me. 

On XX/XX/XXXX, Fed Loan added a document to my account 's inbox entitled, " Understanding Your Financial Activity Summary. '' This document purports to be a complete accounting of all payments on my loans. Yet, this statement includes a number of inconsistencies. 
The first page of the summary includes an overview of the two loans. The XXXX loan is listed as having an original principal balance of {$25000.00} and has a current principal balance of {$0.00}. The XXXX loan is listed as having an original principal balance of {$190000.00} and a current principal balance of {$2800.00}. 

With respect to the smaller loan, the ledger begins with a " XX/XX/XXXX CONVERSION '' transaction in the amount of {$26000.00}. According to the ledger, {$25000.00} is the principal balance and {$670.00} is the amount to interest. Adding the two amounts for principal and interest equals {$26000.00}. 

The summary relating to the larger loan contains a number of inconsistencies. The ledger for this loan begins with a " XX/XX/XXXX CONVERSION '' transaction in the amount of {$200000.00}. The principal balance is listed as {$180000.00} and the amount to interest is {$6800.00}. When you add together {$180000.00} and {$6800.00}, you get {$190000.00} not {$200000.00}. Notably, the principal balance amount of {$180000.00} is different than the amount listed on the first page of the summary ( {$190000.00} ). 

The next entry on the larger loan includes a transaction on " XX/XX/XXXX '' described as " PRECONV PAYMT '' in the amount of {$1600.00}. This amount appears to have been added to the original principal balance ( of {$180000.00} ) as the principal increased to {$190000.00}. 

The next 35 entries on the ledger are described as " XX/XX/XXXX PRECONV PAYMT. '' These entries appear to reflect payments towards the principal. The payments total {$2400.00}. The last one of these entries was in the amount of {$13.00} and reduced the principal balance to {$180000.00}. 

The principal balance remains at {$180000.00} until the second to last entry. That entry relates to a payment on XX/XX/XXXX in the amount of {$220000.00}. From that payment, {$180000.00} was applied to the principal and " {$1000.00} '' was applied to interest. Clearly this is inaccurate because adding {$180000.00} + {$1000.00} does not equal {$220000.00}. According to this transaction, after applying the payment, the principal balance was {$2200.00} as of XX/XX/XXXX. 

The last entry on this ledger is dated XX/XX/XXXX and is described as " INT CAPITLZTN '' in the amount of {$580.00}. This amount appears to have been added to the principal balance as the total principal balance increased to {$2800.00}. 

This account summary is full of inconsistencies and errors. It does not explain anything about the alleged " adjustment '' described in " XXXX '' 's XX/XX/XXXX email. Moreover, it shows wildly divergent original principal balance amounts. I note that the balance on the account as reflected on this ledger ( {$2800.00} ) is different than the amount " XXXX '' encouraged me to pay in his email of XX/XX/XXXX ( {$2200.00} ). Critically, it appears the ledger was created in response to my Department of Education complaint. It was not created for the purpose of calculating the total loan payoff amount in XX/XX/XXXX. 

To date, Fed Loan has not provided any explanation or documentation to account for the changing principal balance amounts nor the alleged " adjustment '' that was previously replied. Moreover, initially Fed Loan seemed to claim a portion of the amount I allegedly owe was interest ( See XX/XX/XXXX Monthly Bill '' ) yet other documentation shows Fed Loan claims the amount is principal ( See XX/XX/XXXX entry on XXXX XXXX " Understanding Your Financial Activity Summary. '' ) I requested the total loan ( including ALL principal and interest ) payoff amount with a payment date of XX/XX/XXXX. Fed Loan calculated the amount ( {$250000.00} ) and, relying on Fed Loan 's representation, I paid it in full. Fed Loan followed up and sent written confirmation that both loans were paid in full. Fed Loan reported both loans as paid in full to the credit reporting agencies. Over three years after I paid off the loans, Fed Loan now claims there is an outstanding balance on my account. Instead of providing an explanation of the alleged outstanding amounts, Fed Loan has provided monthly bills and an account summary that contain inconsistent information. To date, Fed Loan has not substantiated its claim that I owe additional money on the loan. Further, Fed Loan appears to be charging me interest ( yet is claiming it is principal ) on a loan it confirmed was paid in full. This is a deceptive act or practice. I am entitled to a clear response from Fed Loan explaining why Fed Loan contends I owe an additional amount on this loan. I am also entitled to documentation substantiating the amount Fed Loan contends I owe.