April 2, 2016
Hi, I am reporting a problem with Navient for which I hope some of you can offer advice. At the moment, I have sent an email to their advocate office whom I’m waiting to hear back from next week. That said, the new “payment” is due by April 22 and I suspect they’ll charge me another late fee should a payment not be made.
Here’s the email I sent the advocate:
“SUBJECT: Misapplied Repayment for account #XXXXXX
on March 21st we made a payment towards the late fees of the account in the amount of 94.23$. At the time, on the phone, we made clear the payment should be applied towards the late fees in the equivalent amount, due by March 22s. It is quite clear from my current and past history I am not in a position to pay any other expenses. In fact, an IBR plan was approved to start Feb 21st in the amount of 0$ for 12 months and previous to that, my account was under an unemployment deferment.
Nevertheless, we tried to comply with your late fees and made an effort to extinguish them.
After the phone call you erroneously applied only 2/3 of our payment towards the late fees and decided to apply 1/3 towards interest accrued. This puts us in a difficult position as we cannot afford to go into repayment of anything at the moment. We made an effort to pay the late fees as we understand these must be repaid even under a 0$ IBR regime, I hope you will appreciate.
I am asking you to correct the misapplied repayment within the next 5-7 working days. This will bring the balance in late fees back down to 0 before 4/22, where it should have been after we made our payment.
May 3, 2014
This is an excellent email and a good way to start the discussion.
I recently posted an article on the subject and hopefully some of the tips there will help you as well. https://studentloansherpa.com/navient-applies-payment-incorrectly/
Something tells me the email might seem familiar 😉
April 2, 2016
Many thanks Michael and apologies for cross-posting. I’m still getting my head around the meanders of your website.
Your advice was very useful and I will indeed call them again and ask the ‘why’ question should the advocate not reply to my email.
From personal experience, though, I should add, the Ombudsman is not a reliable service. I once filed a complaint for which they initiated a claim but never got back to me about until 2-3 months later. Over the months, I had to make 4 calls and leave a couple messages on the responsible person’s answering machine to understand at what stage of the process my complaint was. Nobody ever called me back, nor did I receive any emails.
My efforts to solve the issue died as I had to give in to the illegal requests of the lender over time.
In the future, if need be, I suggest anyone requiring assistance go to the CFPB instead.
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