Consumer complaint received 2024-11-20 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: DISCOVER BANK
State: PA

Complaint narrative:
I recently refinanced my private student loans through XXXX. In order to close out my loans with Discover Student Loans, XXXX sent XXXX separate checks to Discover Student Loans to cover the XXXX open loans I had with them. During the process of refinancing my Discover XXXX with XXXX, Discover transferred the servicing of the loans to XXXX XXXX. Discover XXXX was then responsible for forwarding the checks they received from XXXX to XXXX XXXX. Discover XXXX have confirmed that they received all XXXX checks from XXXX and have forwarded all XXXX checks to XXXX XXXX between XXXX XXXX. However, XXXX XXXX can only confirm receipt of XXXX of the XXXX checks. As a result, I still have XXXX outstanding loan open with XXXX XXXX that is requiring payment and accruing interest at this time, but based on the terms of my refinancing with XXXX, all loans with Discover and XXXX should be paid off and closed out. I have called all three companies multiple times to find a resolution, however I am running into dead ends with all of them. XXXX has reported that since they confirmed that Discover XXXX has received the funding, that the matter now lies with Discover and XXXX to resolve and that they are unable to intervene further in the process. XXXX is reporting that since they dont have record of receiving the XXXX check they have no way of tracking if it is lost somewhere within their own system, even though I have provided them with the check number and exact amount the check was made out for ( check number XXXX for {$25000.00}. ) XXXX is reporting that the only way for them to track the check on their end is if I provide them with an image of the front and back of the check, which I have requested from both XXXX and Discover but was told that was not something either of them could provide to me. XXXX is also refusing to communicate directly with Discover to resolve the issue, and Discover is refusing to communicate directly with XXXX. Each time I have reached out to Discover they report that they are escalating the issue and opening an investigation, and that I will receive a call back with updates within a certain number of business days. I never receive a call back, and when I call Discover for updates I am told the exact same response, that the issue will be escalated and an investigation will be opened, as if the issue was never looked into in the first place. I have spoken directly to supervisors at Discover and I am given the same run around. I have also requested directly that Discover just reissue the check to XXXX, as that has been suggested by both XXXX and XXXX, however that request is never directly acknowledged or addressed by Discover, as the request to reissue the check also has to be escalated, and then I am never given a call back or an answer about it. I am truly at a loss for what else to do in this situation, as I am not receiving any help from any of the XXXX companies involved, and am currently being held responsible for payments to both XXXX and XXXX for an overlapping loan which I can not afford double payments for. I am hoping for Discover to be held responsible for ensuring that the funds they received from XXXX are successfully forwarded to and processed by XXXX XXXX, and for XXXX XXXX to be held responsible for properly receiving and processing the funds they received from Discover.

Company response to consumer: Closed with non-monetary relief