Consumer complaint received 2025-12-02 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Climb Credit Inc.
State: VA

Complaint narrative:
I am disputing a private student loan serviced by Climb Credit connected to XXXXXXXX XXXX XXXX. The school abruptly shut down and ceased operations in late XX/XX/year>, making it impossible for me to continue or complete the program I contracted and financed. This is a material non-performance issue. 

Immediately after the shutdown, I notified Climb Credit that the school could no longer provide the contracted services and that I was asserting my rights under the FTC Holder Rule. I requested that the account be placed into dispute status, that collection activity be suspended, and that any ACH withdrawals be stopped. 

Instead of investigating, Climb continued to display a payment due and showed an active recurring withdrawal scheduled for XXXX. This was happening even after I revoked ACH authorization and formally disputed the loan. Their system also continued showing a monthly payment amount and an outstanding balance, despite the dispute. 

I repeatedly asked Climb for : * Written confirmation that my dispute was being investigated * Confirmation that the account was placed into dispute status * Confirmation that all payments and ACH withdrawals were suspended * An explanation of why payments were still being billed during a dispute * Information on how Climb was applying the FTC Holder Rule * Any documentation of their investigation or determination Climb did not provide any of this information. 

Instead, every detailed message I sent was met with the * * same automated response * *, stating : Thank you for contacting us your complaint has been directed to our senior team. 

I received this same copy-and-paste message multiple times, including again on * * XX/XX/year> * *, with no substantive reply. At no point did Climb acknowledge the dispute, freeze payments, provide any investigation results, or address their responsibilities under the Holder Rule.

Climb also repeatedly told me that they can not process a refund unless the school approves it, which is not correct under the FTC Holder Rule. The school is shut down and non-functional, making their instruction legally and practically impossible. 

As of now, Climb is : * Continuing to display amounts due * Showing a recurring ACH payment that was supposed to be revoked * Failing to acknowledge or investigate my dispute * Providing no information about how they are handling the claim * Refusing to apply required Holder Rule protections * Giving only repeated automated messages instead of real responses I am requesting CFPB assistance to ensure that Climb : 1. Freezes all payments and collection activity during the dispute 2. Properly investigates the claim under the FTC Holder Rule 3. Provides written confirmation that ACH authorization is revoked 4. Stops requiring the closed school to confirm refunds 5. Provides a legitimate, substantive response instead of repeated automated emails 6. Adjusts or cancels the loan as required under federal protections

Company response to consumer: Closed with explanation