Consumer complaint received 2024-05-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services
State: MI

Complaint narrative:
On XX/XX/XXXX I made a payment directly to EdFinancial for {$10000.00} not knowing that the XXXX XXXX XXXX would also send the same amount back to EdFinancial. I requested a reversal of my payment shortly thereafter. I didn't hear anything else from EdFinancial and assumed the request had been declined, and I did not have capacity at the time to continue calling about the funds. 

On approximately XX/XX/XXXX, I received a check from the US Department of Education for {$10000.00} for the payment reversal that I had requested 7 months ago. This is the first problem. I went back to work full time while in school full time to pay my bills and managed to pay them all. 7 months is an absolutely unacceptable timeframe for a payment reversal, especially of a payment of this size. That's the first problem. 

The second problem is that when I went into my online account after receiving the check in XXXX, I saw that EdFinancial had completely rewritten my account history, as if the reversal had actually been processed the same day that I made the payment. The account history has been falsified. I am not able to view a record of how my payments during those 7 months had been applied. The falsified records is the second problem. 

The third problem is that EdFinancial has backdated the interest that accumulated on the FULL loan amount -- -pretending that the payment had been reversed on XX/XX/XXXX when I made the payment -- -even though they had the money for another 7 months, while I took on full time work to pay my bills. EdFinancial had the money during these 7 months. I did not have the money during these 7 months. Backdating the interest owed so that I am paying interest on {$10000.00} that I DID NOT have is the third problem. 

I called EdFinancial on XX/XX/XXXX at XXXX XXXX on a call that lasted 53 minutes. They confirmed that the reversal of the XX/XX/XXXX payment was only approved on XX/XX/XXXX and that the {$10000.00} was added back to my account effective XX/XX/XXXX. I have supplied several additional documents that support this information and prove that I have been erroneously charged interest on money that EdFinancial possessed. 

A ) A printout of my account history as it looks today, which shows that the payment of {$10000.00} was reversed on XX/XX/XXXX -- -which is false. 

B ) My student interest statement for tax year XXXX which shows that I paid {$130.00} in interest for tax year XXXX. However, the falsified account history now shows that {$240.00} of the payment I made on XX/XX/XXXX was applied to interest, proving the discrepancy in interest calculations. 

C ) My quarterly statement from EdFinancial dated XX/XX/XXXX which shows the balance for this loan as {$8900.00}. This proves that as of XX/XX/XXXX, EdFinancial still had the {$10000.00} that I had requested reversed in XXXX, and that the account history has been falsified and the interest was unlawfully backdated 7 months.

Company response to consumer: Closed with explanation