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Registered: ‎02-19-2013

What do you do when your loan servicer messes up?

My loan service company recently acquired my loan (along with who knows how many others) from a direct loan service company.  In the process of their "upgrading" their "system", they reported me late on payments, which I was not.  After months of back and forth discussion with them, we discovered that due to their "upgrade" taking place virtually simultaneously with my bank's bill pay service, my payments had been going to a black hole somewhere.


Faxes, phone calls, emails, documention -  hanging on the phone for an hour waiting for a rep only to be disconnected the instant a rep answers - now I'm showing 150 days late and I'm getting very nervous about what the servicer is going to do or not do.  I was told I had been given an "administrative forbearance" while they researched my account but nothing, nothing, nothing ever shows up on the website and every bill I get looks more and more threatening 


I have called the DOE Ombudsman and was given a number which is SUPPOSED to be the ombudsman for the servicer but in fact it was not an ombudsman but it was just another number to the servicer.  (At least this number didn't disconnect and I got through in a reasonable period of time).  Meanwhile, I looked up their ombudsman's number by using the search on their website and found that their ombusdman that they list is just a front for them!


I was told that there was no manager who could talk to me but that one would call back with in 24 hours; why do I not feel that this will be of any help?  What should be my next step?  I'm really nervous because I have a balloon transitional loan on a house that will mature in Ocober and if my credit score is still low due to all of this, I may not be able to refinance the house.


And, of course, I'm worried in general about loss of good credit, hard won, which is now knocked down to 720 on one of the CRA's scales.

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