Date Received: 2018-12-09T00:00:00.000
Product: Private student loan
Issue: Dealing with your lender or servicer
Consumer Consent Provided to Share Complaint: Consent provided
Consumer Complaint: I decided to refinance my student loans with Discover to save on some interest as I was getting a lower rate with another service provider.
My loan was paid off at Discover on XX/XX/2018 and there was an excess payment of more than {$3000.00} on the account.
One week later, on XX/XX/2018, I contacted Discover to find out about the status of my refund due to the overpayment.
I talked to the customer service representative and her supervisor and I was told Discover has a right to hold onto the payment for upto 45 days. They are really busy with processing thousands of student loans so they can not verify the payments have been applied to my account accurately. In about 45 days, they will mail out a check which will take another 7-10 business days for me to get my money back. They have a right to hold onto my money ( they gave me an exact amount {$3300.00} ) as they look to verify all closing details. If they have the exact amount of refund owed, that means the payment have been posted already. I never had a late payment on my account and no payments have been missed ever on the student loan. But they still want to ensure that ‘ no extra unknown charge ‘ pops up on my account in this timeframe I think it is a really unfair practice that it takes them upto 45 days to post my payments accurately and they have a right to hold onto my money for that long. I am accruing interest on the refinanced loan while Discover decides to hold onto my money for close to two months and not doing their job in a timely manner.
Company: DISCOVER BANK
State/Zip: CT 065XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 3095342
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