CFPB Complaint

NELNET, INC. – CFPB Complaint ID 3084270

Consumer Complaint Submission

Date Received: 2018-11-27T00:00:00.000

Product: Private student loan

Issue: Dealing with your lender or servicer

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: I just refinanced my student loans and XXXX is my brand new loan servicer for my loan. I sent in a check to make an extra payment on XX/XX/18. I wrote in the memo area the ” note id ” number from my statement. I wrote ” ID : XXXX ” because I figured there are lots of different numbers on the statement, and I wanted to be clear that was the note id number so it would get processed correctly.

On Tuesday XX/XX/18, I saw that my check for {$1200.00} had cleared the bank but it was not applied to my student loan balance. On Friday XX/XX/18, my student loan balance still hadn’t gone down. I called and spoke to a customer service rep who said payments are processed at XXXX XXXX and it takes two business days to post to the account. We did the math, Tuesday, Wednesday, XXXXXXXX XXXX, Friday, and the customer service person said it should be posted by XXXX XXXX Friday.

Today is Tuesday XX/XX/18 and my student loan balance still hasn’t changed. I called XXXX and two phone calls and lots of back and forth they were able to figure out that they had misapplied my payment to the wrong account. They said it was because I had put the note id number on my check instead of the account number. I pointed out I was not given any specific instructions about what to put on the check, so I used the number I had from my statement which was the note id number. And I labeled it ” ID ” to be clear that it was the note id number.

The customer service supervisor I spoke with said that my payment was applied to an account number that is the same as my note id number. He said this error happens sometimes. I am concerned that their payment processing system is insufficient because it is designed in a way that leads to errors.

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First of all, they should be able to process a payment that is flagged using any one of the numbers they assign to customers, which from a customer ‘s perspective are pretty much indistinguishable from one another. Second, since they use multiple different numbers, they should distinguish these numbers from one another in a way that prevents this type of error. For instance, if the account number is separated by dashes and ends in two zeros, whereas the note id number starts with the first letter of the last name, or whatever. Their system should be capable of identifying the numbers they create and design and apply payments correctly to the correct accounts.

I’m concerned they are not handling payments professionally and responsibly. Their payment processing system has design flaws that inevitably result in errors. It is designed to fail.

Furthermore, I was dissatisfied that I had to call back several times and do unnecessary follow up to try to track down my payment. The problem was not resolved quickly or efficiently.

Company: NELNET, INC.

State/Zip: WI 537XX

Company Response to Complaint: Closed with explanation

Was Company Response Timely: Yes

Did Consumer Dispute Company Response: N/A

Complaint ID: 3084270

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.

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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