Citibank N A Complaint - Loan Repayment - The Student Loan Corporation
SOUTH DAKOTA -- Citi Bank bought my student loan from Sun Tech Loans approximately 3 years ago. Since then repayment of this Loan has been Hell.. CITI bank does not apply loan payment per the terms specified within the Prom notes.. Payments on Student loans are supposed to be applied to Principal & Interest equally and any remain funds are supposed to go to advance the due date of the loan. (example your loan payment is $158.73 a month you pay $240.00 the extra fund are supposed to automatically advance your next due date into the future if you kept paying $240.00 for a few month you would be advancing the due dates into the future thus giving you the loan holder the ability to skip a payment if you like without becoming past due) CITI bank does not automatically apply payments this way. They don't advance due dates unless you tell them to which is wrong. They also refuse to modify there payment system saying Loan holders need to send in the payment stubs every month or sigh up for their online payment system.. Per the terms of the prom notes signe loan holder are not required to send in any coupons with payments you are required to send in your payments with you SS# and acct number on your payment so they can apply payments to your loan that is it..
CITI Bank and other Loan companies are responsible for posting your payments correctly to your loan you should not have to bend to their payment methods.. Anyone with a CITI Bank loan should review there loans to ensure that their payments are being applied correctly you could be paying fees and not receiving % discounts your entitled to.. I have not faith in this bank what so ever and would never give them my business.. This could be grounds for a class action suit. If they aren't applying my payments correctly. I can't be the only one..
Since CITI is not applying payments correctly to these loans they are not technically backed any longer by the government so if someone were to default on the loans CITI could be left holding the bag as long as the loan holder did not sign a new prom note.