LendKey Technologies, Inc. Student Loan Complaint

Non-federal student loan Dealing with my lender or servicer trouble with how payments are handled

LendKey Technologies, Inc. Student loan department,

Non-federal student loan Dealing with my lender or servicer Trouble with how payments are handled Texas

My problem concerns Lendkey Technologies , Inc. ( Lendkey ), and their " next business day '' payment processing policy for student loan borrowers. Lendkey allows borrowers to make a direct payment only on the - of each month, which is also the day the payment is due. However, if the - falls on a weekend or holiday, Lendkey processes the payment on the next available business day. This oftentimes lengthens the billing cycle by 1-3 days. Interest continues to accrue during the extra days, resulting in higher payments over the life of the loan for the borrower. This practice is unfair and deceptive. If Lendkey legitimately can not process payment on a weekend or holiday, then Lendkey should either 1 ) allow borrowers to make a direct payment on a date preceding the weekend or holiday, and/or 2 ) discount the interest that accrued on the loan during the extra days. Lendkey requires borrowers to make payment by the - and threatens the borrowers with late fees if payment is not timely received. Yet, Lendkey apparently lacks the capacity to consistently process the payment by the due date. Lendkey 's inability to timely process payments should not

Lendkey may argue that the borrower breaks even because a lengthened billing cycle in Month A will equally reduce the length of the billing cycle in Month B. However, the balance of the loan and the interest per day will always be lower in the subsequent billing period because the borrower made a payment the previous month. Therefore, the money lost due to interest accrued during the weekend or holiday in Month A will always be greater than the money gained due to the shortened period in Month B. Accordingly, Lendkey should be made to revise its payment processing policy and reimburse the extra interest to the borrowers.

LendKey Technologies, Inc. customer in Texas
May 13, 2016

* Source: CFPB Complaint Database

LendKey Technologies, Inc. response to complaint:
Closed with explanation

Get Help

Get personal financial help today. Free tools, resources, and support you need.

Help Me

File a complaint

Submit a complaint with the Consumer Financial Protection Bureau today

File Complaint

Stop Phone Calls

Stop the phone calls, learn how to stop harassing phone calls

Stop Calls

Loading similar complaints


{{x.COMPLAINT_WHAT_HAPPENED | preview}}...

Read more