Quick Answer: This Nelnet CFPB complaint highlights how multiple student loan accounts can severely damage credit scores, with the borrower requesting legislation to consolidate loans into single accounts. Nelnet responded to the complaint in a timely manner and closed it with explanation, though the consumer’s dispute status remains unavailable.
Date Received: 2018-12-29T00:00:00.000
Product: Federal student loan servicing
Issue: Improper use of your report
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
In the latest issue (Sep 16): The truck was $28,999 online. At the desk it’s $31,400. As of yesterday, the FTC says the ad was the lie.
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
Consumer Consent Provided to Share Complaint: Consent provided
The Daily Money Brief — Free, at 10 AM
Money you may be owed, scams to dodge, and the fine print decoded — the consumer money news that affects your wallet, every weekday.
Consumer Complaint: It is extremely difficult to repair and raise your credit score when you have multiple accounts for student loans. Student loans are high, and, unfortunately, falling behind means it affects your scores dozens of times. Student loans should be consolidated to one account so that it doesn’t drag your credit score down. Low credit score because of student loans are having a harsh effect on the graduates quality of life which makes it even more difficult to pay back the student loan. This complaint is a call for legislation that would consolidate an individual’s student loans into one account so that their credit score isn’t so harshly affected.
Company: NELNET, INC.
State/Zip: FL 330XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 3112411
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.
Know Your Rights: If a debt collector is contacting you, you have legal protections. See the complete list of FDCPA violations collectors commit most often. Use the free Debt Validation Letter Generator to demand proof of the debt, or check this collector’s complaint history with the Scam-O-Meter.
Dealing With Debt? Before you pay a collector, understand all your debt relief options — including ones the collector won’t tell you about. If the debt feels unmanageable, take the 2-minute bankruptcy quiz to see if the math favors a fresh start. Federal Reserve research shows filers recover faster than those who don’t file.
