Consumer complaint received 2016-04-25 00:00:00
Product: Other financial service — Debt settlement
Issue: Unexpected/Other fees — 
Company: Fedloan Help
State: SC

Complaint narrative:
In XX/XX/XXXX, I reach out to Fedloanhelp.org to help me to reduce my student loans. They gave me a quote which can reduced the loan payment. When I signed the contract and gave them the bank statement for automatic withdraw in the amount of {$72.00}, I was under assumption that they are not for profit. At the time, I understand I have to make a donation to help the organization with the operation cost. Fedloanhelp.org has been withdrew money from bank account every month since XXXX XXXX, XXXX. Recently, I received the approval for my loan consolidation from Fed Loan XXXX stated that my monthly payment is {$0.00} until XXXX XXXX, XXXX. I look at my bank statement to check for the amount and the address. The electronic check showed the check made payable to Student Loan Payment XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX, which was not match with the address that Fed Loan XXXX sent me. I called Fed Loan XXXX and asked them about the payment of {$72.00}. They said the amount never apply to my account, and the amount that Fedloanhelp has been charging me was for their fees because I used the third party. The customer service associate said that all they did was fax the document over. I called Fedloanhelp.org at XXXX to ask them why the amount did not applied to my account. XXXX XXXX from Fedloanhelp said that the amount goes into a trust, which I do n't understand. She said that she is busy with other files, but she will call me back. While I was waiting, I went the PDF document that I had XX/XX/XXXX. The PDF document did not stated the payment goes into an escrow or trust. It said that it will apply to the account. However, in the event that client, which is me, is not happy with the service. I can cancelled and donate the money in Year 1. So, I called Fedloanhelp.org back, and I spoke with XXXX XXXX. I told him that Fed Loan XXXX did n't have any record the payments had made. He said that Fed Loan XXXX customer service did n't know how this thing work. At the same time, I was thinking that if Fed Loan XXXX told me that I do n't have to make any payment until XX/XX/XXXX, and I have to make {$72.00} monthly to Fedloanhelp. Why did the payment has to go into a trust? Why did they send directly to Fed Loan XXXX? What will happened one year from now? I may be out {$850.00} XXXX $ XXXX ) if they wo n't apply the amount that they have been withdrew. So I cancelled the service. Obviously, they are not refunding the amount that I had paid for XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX in the total of {$210.00} because this will be in the donation to help them with their operation cost. 
I do n't know if Fedloanhelp.org has ever been violated any laws ; However, I felt like it should n't be complicated and it should be straight forward. 
Even though, I agreed to make the donation. However, I feel like I was strict to pay " fees '' as donation even though they stated as donation. In addition, I feel like fedloanhelp.org has been using the dot org and not for profit as a marketing strategy. On their website, they listed CFPB, XXXX, and couple other websites as compliance.

Company response to consumer: Closed with monetary relief