CFPB Complaint

AES/PHEAA – CFPB Complaint

Consumer Complaint Submission

Date Received: 2018-05-11T00:00:00

Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: I have been paying additional amounts on my monthly payments in order to reduce the principal. I have just found from dealing with the company that additional amounts I have been paying since XX/XX/2012 have not been applied to principal. Instead the company have been holding the funds for future payments in a ” paid ahead ” status.

Basically holding my money and indefinitely pushing it forward in time to future payments instead of applying it to principal. This is a problem because I am paying the money now to reduce the principal on which I am paying interest. But they are not applying it to the principal, so they have my money, have not reduced my principal and are still changing me interest on the full amount.

I had NO IDEA this was happening. I have been paying a lot more each month to reduce principal and apparently they have just been holding my funds.

As of today, after speaking with a rep, they said they have taken off the ” paid ahead ” status on my account. :

Company: AES/PHEAA

State/Zip: CA 917XX

Company Response to Complaint: Closed with explanation

Was Company Response Timely: Yes

Did Consumer Dispute Company Response: N/A

Complaint ID: 2903982

The above data is from the Consumer Financial Protection Bureau. Keep in mind that every company will get a complaint from time-to-time, even the great ones. But there are a few key data points that will give you an idea about how well the company values their customers and handles consumer issues.

Look at the item Company Response to Complaint: and Did Consumer Dispute Company Response: to get a better idea of how this was resolved. And the field Consumer Complaint: can give you some context of the issue.

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In particular what you are looking for was that the company response was timely and that the consumer did not dispute it. The posting of complaints has proven to be a valuable resource for both companies and consumers.

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