BBB Business Review

BBB Accredited Business since 01/31/2008

EdFinancial Services, LLC

Phone: (865) 342-5500Fax: (865) 692-6306298 N. Seven Oaks Drive, KnoxvilleTN 37922

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BBB Accreditation

A BBB Accredited Business since 01/31/2008

BBB has determined that EdFinancial Services, LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised EdFinancial Services, LLC's rating include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 70 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.

Customer Complaints SummaryRead complaint details

70 complaints closed with BBB in last 3 years | 13 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues1
Billing / Collection Issues53
Guarantee / Warranty Issues1
Problems with Product / Service15
Delivery Issues0
Total Closed Complaints 70

Customer Reviews Summary Read customer reviews

1 Customer Review Customer Reviews on EdFinancial Services, LLC

Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 1
Total Customer Reviews 1 Customer Review

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (70)
04/22/2016Advertising / Sales Issues | Read Complaint Details
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Complaint
I was trying to lower my student loan amount after an health crisis and I was lied to repeated then my loan jumped up about *** dollars. The emotional toll, future health and financial uncertainty I checked their website to see if there was a way to lower my student loans. To my surprise the website quoted me a lower monthly cost so I called to confirm if that was true and the operator confirmed it too. This was around the late ***** So I proceeded to complete my paperwork and sent it in and checked to see if they received it and when does my payment start. This was in QX XXXX. To my surprise they said I have to pay higher than I was originally paying before I started this process, about *** higher! I called today and the explanation I was giving was "our systems wasn't working so you were misquoted many times but since you are now in this new program you have to pay more and there is nothing we can do about it." This is what ****** employee id ***** told me. Also she would not give me her last name which I thought was odd considering when I asked to speak to her supervisor she lied and she told me there is no one higher than her. So you're the boss but have no last name.

Desired Settlement
I just want my old payment plan back. Had I not been lied to repeatedly and been told accurate information I would not changed anything about my payment plan.

Business Response
The U.S. Department of Education (the Department) transferred the servicing of your student loans from the Direct Loan Servicing Center to Edfinancial Services May ** ***** Prior to transferring to our office, your loans were placed on a fixed monthly installment of ******* beginning with your ******** due date. You contacted our office on ******** and requested information on lowering your monthly installment. Based on the information you provided the representative (your household size of 3, full-time employment status, gross income on one paycheck of ****** and a combined AGI of ********** you were quoted an estimated Income-Contingent Repayment ***** plan installment amount of ******** This information was incorrect and we apologize. We received your *** request and proof of income on ********* and on ******** your account was approved for *** with a payment of ******** On ********* you contacted our office inquiring why your payment was higher than you expected. You were advised that the previous estimated *** payment amount was incorrect, and you requested to be placed back on your previous repayment plan of ******** You requested to speak to a supervisor and were transferred to ******** who reiterated the previous information and could not transfer you to her supervisor, as her supervisor was unavailable at the time. We have placed your account back on your previous fixed repayment schedule with a monthly installment amount of ******** Edfinancial Services is committed to providing exceptional customer service and we sincerely apologize for any inconvenience. Your remaining amount due for ******** is ******* If you would like to request a forbearance for the month of ****** please contact us and we will be happy to assist you.
If you are interested in obtaining a lower payment, we recommend you consider loan consolidation. You may choose to consolidate your loans into a single Direct Consolidation Loan, which will be a new loan with a new repayment term. To find out more about loan consolidation and apply online you may visit **************************************************** If you are unable to make payments in any amount, there are several deferment and forbearance options available under the HEA.


Consumer Response
(The consumer indicated he/she ACCEPTED the response from the business.)
Thank you for rectifying the situation.

08/21/2015Billing / Collection Issues | Read Complaint Details
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Complaint
Sunbmitted ** days late info to credit bureaus for april ***** Never have had a payment ** days late.Was checking credit report. Discovered negative report from Edfinancial. Said ** days late for april ***** This never happened. This false report has lowered my credit score.

Desired Settlement
Send me letter certifying the error was corrected.

Business Response
The Federal Direct Stafford Loan we are servicing was issued under Part D, Title IV of the Higher Education Act of 1965 (HEA), as amended, 20 U.S.C. 1070 et seq. The making and servicing of this loan is governed by the HEA and the rules and regulations promulgated thereunder. In accordance with the HEA, we are required to report information concerning the repayment status of student loans to the nationwide consumer reporting agencies each month. We recently reviewed the credit history of your loan and an update was submitted to each of the nationwide consumer reporting agencies on ********* We determined that the payment of ******* received on ******** brought your account current; therefore, the **** day delinquent' reporting which also occurred on ******** has been updated to reflect as 'current'. Please allow processing time for the nationwide consumer reporting agencies to make adjustments to their records.


Consumer Response
(The consumer indicated he/she ACCEPTED the response from the business.)

08/19/2015Billing / Collection Issues | Read Complaint Details
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Complaint
I submitted yearly documentation for my income based repayment plan. I was told my income documentation was adequate but told later it's not so.
I have my government loans serviced through ED Financial. I have been on the income based repayment plan and need to submit documentation every year. My documentation was due on July 24. I sent in information on my job at a hospital where I am a salaried employee. I have another job where I work as a contractor. I have sent in several letters documenting this. I told them I made different amounts every month and was told (verbally) that I can send in documentation regarding the most recent month. I sent in documentation regarding my most recent month of employment at the job where I'm a contractor. This was not accepted due to "verbiage." I got an email telling me exactly what to write. I turned in documentation detailing exactly what I was told. I got verbal confirmation that I had submitted adequate documentation as of 7/22. Then, on 7/31, I got an email stating that although I gave my pay, the frequency of my pay, and the address of the place I'm contracting for, this is inadequate because I didn't use the words "gross income." I was emailed this on 7/31, when it was too late for me to do anything. Now I owe more than I can afford for my next payment. And my interest has been capitalized

Desired Settlement
I would like to remain on my repayment plan. I do not want my interest capitalized. I would like my payments adjusted as per my current income.

Business Response
Edfinancial Services, in business since 1987, is committed to providing exceptional customer service and we apologize for any frustration you may have experienced. The Federal Direct Consolidation Loan we are servicing was issued under Part D, Title IV of the Higher Education Act of 1965 (HEA), as amended, 20 U.S.C. 1070 et seq. The making and servicing of this loan is governed by the HEA and the rules and regulations promulgated thereunder. The U.S. Department of Education transferred the servicing of your student loan from the Direct Loan Servicing Center to Edfinancial Services on October 11, 2012.

You have been repaying your loans under the Income-Based Repayment (IBR) plan. During IBR, your monthly payments are based on your eligible federal student loan debt, income, and family size and you are required to recertify your income and family size information annually. If your income, at the time that you apply for or recertify your IBR plan, is significantly different than the income reported on your most recent federal income tax return, you may instead provide alternative documentation of income (e.g. paystubs) in lieu of a tax return. On July 8, we received your request to recertify your IBR plan along with a statement confirming your family size and gross monthly income. When your request was initially reviewed on July 16, it was denied pending clarification of the gross monthly income you received from Vitals.

Upon further review of your correspondence from July 8, we determined that the income documentation submitted was sufficient to process your renewal request. You were approved for a new IBR monthly payment of $445.72, effective August 28, 2015 through July 28. Our records indicate that you registered for electronic correspondence when we began servicing your loan in October 2012; as such, disclosure statements containing the details of your new monthly payment are available to you in the Secure Messages"\ area within My Account (MMA), which you may access on www.edfinancial.com.

As required by regulations, interest in the amount of $ was initially capitalized on July 29, after your previous IBR payment expired; however, this interest capitalization was reversed on 08/12due to the renewal of your IBR plan, and the outstanding principal balance on your account is now $. Your account is current, and we are scheduled to draft $from your authorized bank account on your next due date, August 28.
Consumer Response
(The consumer indicated he/she ACCEPTED the response from the business.)
The business responded appropriately and reversed the capitalized income as stated above. I am very grateful to the business / employees for their attention to this matter and resolution.

THANK YOU!!!

02/09/2015Problems with Product / Service | Read Complaint Details
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Complaint
I have had several difficulties with Ed Financial not applying my student loan payments to my highest interest loans as requested.-I recently refinanced approximately 1/3 of my student loans and the company was paying off the loans with the highest interest rate. Instead of applying this to the highest rates, Edfinancial applied it to all of the loans. I needed to call at least three times to have this resolved. If I had not caught this, I would have paid about ******* more over the life of the loan. I sent in several ***** payments to make sure my highest interest loan, group ** was paid down. This was requested with my check. It did not happen. The amounts were prorated over each of my loans despite my request. I was told that I would need to either pay on their website or call them with the payment to have the payments allocated properly in a timely manner. In addition to costing more over the life of the loan, these practices create extra obstacles to paying down my federal student loans. I feel that this business practice is completely unfair to students who may be less observant.

Desired Settlement
I would like to have my extra loan payments applied to the particular student loan group that I request. I also would like EdFinancial to change their business practices such that extra student loan payments are applied to the highest interest loans for all students, unless otherwise requested.

Business Response
When you submit your payments, they are first applied to any outstanding interest that has accrued and then to your principal balance; any remaining additional amount will be prorated across the loans on your account. We are unable to automatically apply any additional amount to your loan(s) with the highest interest rate. If you would like an additional payment applied to Group * only, you will need to make those payments online at www.edfinancial.com by selecting the 'Pay By Group' option within Manage My Account. In addition, you may also mail your payment with specific instructions included on the billing statement stub, or you may make a payment over the phone with a representative, who can target the payment as requested.The $$ payments that you submitted, were submitted via bank bill pay, and did not include any special payment instructions; we have since reapplied these payments as requested to Group * only. You later contacted our office and requested to have the ****** ******** Bank payments reapplied to your loans with the highest interest rates. Per your request, we reapplied the payments, and your Groups ** ** and * are now paid in full. When signing the ******* ************* Loan Application and Promissory Note, you acknowledged that you would receive a single consolidation loan, which provides for a single monthly due date and a single installment amount due. In order to accommodate the possibility of you receiving interest benefits on the subsidized portion of your consolidation loan, should you ever receive an authorized deferment, the loan reflects a servicing record for the subsidized and unsubsidized portion of the loan. The unsubsidized portion of your consolidation loan was previously Group ** and the subsidized portion was under Group ** we have since "regrouped" your unsubsidized portion so that it is paired with your subsidized portion under Group **

07/04/2014Billing / Collection Issues | Read Complaint Details
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Complaint
Improper payment distribution of my loan payment thru their online service. Just poor from the start.
I pay my loans online using their "group payment" option. I have all my receipts so I know what I paid and when.I want them to go back and fix all the payment errors and correct my account along with paying me back the extra interest I have paid due to their screw ups. I have emailed them and called a direct number that I received in case of more errors and have not heard back from any one.

Business Response
We apologize for any frustration you may have experienced. Your Federal Direct Consolidation Loan, was transferred to our office for servicing in //////. Since that time, we have reapplied several of your payments in an attempt to align the separate portions of your loan. Please note that you have one loan with a subsidized and an unsubsidized component. Borrowers, when signing the Federal Direct Consolidation Loan Application and Promissory Note, acknowledge that they are required to repay a single consolidation loan with a single monthly installment amount due. In order to accommodate the possibility of you receiving interest benefits on the subsidized portion of your loan, your loan is loaded to our servicing system with separate servicing records for the subsidized and unsubsidized portions. We have re-grouped these portions into one group so as to avoid any further payment reapplication issues. Again, we apologize for any confusion this issue may have caused. If you submit a payment in excess of the regularly scheduled installment amount due, it will first be applied to the outstanding accrued interest. Any excess funds will be applied proportionately to the principal balance remaining on each subsidy and will satisfy future installments due on the loan. As such, you are not able to target additional funds to the subsidized or the unsubsidized portion of your loan.

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04/26/2016Billing / Collection Issues | Read Complaint Details
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Complaint
Auto debited from my account even though I prepaid my balance, putting my bank account in the negative reversing a payment to a different loan company. I missed a payment on February *** **** and planned to pay what I missed and my current payment due all at once. I did that on March *** ***** When I checked back to make sure my account wouldn't be auto debited it said my next auto debit would occur in April, so I saw no need to call the company. (They seem to never be open when I call). I was shocked to find that they have taken payment for February, March, and April. That was not in my plan. I only use that checking account for loan payments. I set up the remainder of that month's (March) funds to make a payment to my other loan company. Because Edfinancial took the liberty to take April's payment early, they put my account in the negative (one *** fee) and caused my other payment to bounce (another *** fee!).

Desired Settlement
I would like my April payment to be returned and reimbursement for the 2 *** fees they caused me to incur.

Business Response
You were most recently repaying your loans via *********** Edfinancial's automatic debit payment program. Your February ******* payment drafted on ******** for your monthly installment of ******** On ********* we were notified that this payment was returned by your financial institution for non-sufficient funds. A letter advising you that the payment was returned, and encouraging you to make a payment of the past due amount to bring your account current, was mailed to you on ********* Our records indicated that you logged into your online account on ******** and scheduled a payment of ******* to be drafted on ********* As your account was still being repaid via ******** we drafted your next KwikPay payment on ******** in the amount of ******** The payment you made online and the ******* payment together satisfied the installments due on your account for February, March and April. Edfinancial did not debit your account early for the payment due in April; the payment which was debited on ******** in the amount of ******* was your regularly scheduled amount due for the March due date. On ******** you logged into your online account and cancelled ******** we subsequently sent you a ******* cancellation letter confirming that your request was processed. Again, the ******* payment we drafted on ******** was authorized based upon your signed ******* Authorization Form; therefore, we must respectfully decline your request for a reimbursement of overdraft fees. We can request a refund for the ******** payment of ******** however, the payment must 'age' 30 days until ******** before we can initiate the refund request. This is to ensure a payment will not reject or be returned for any reason. Approved refunds are then sent via the U.S. Treasury, and it may take 1 to 2 weeks for you to receive the check in the mail. Please note that if the payment of ******* is refunded, your account will be due for the ******** due date. If you would like us to refund the ******** payment of ******* after it has aged 30 days, you will either need to contact our office to request a forbearance for the ******** due date or remit a payment for to keep your account from becoming past due. Please contact us to confirm whether you would like us to proceed with the refund request.

04/08/2016Billing / Collection Issues | Read Complaint Details
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Complaint
this company says it has my school loan an it does not delta does I have gone to the national student loan data base system and it shows this loan that they say they have in default they say its not.the last payments where made to granite state management& resources these payments where made from **** to ****** have called them to tell them this and all they say is they do have the loan there looking at it now last year they took my income taxes because the loan was in default and delta management services had this account not them and I will loose this years also because of this.last year I lost ****** because I was told by them my loan was not in default

Desired Settlement
I want them to take me off there list saying I have a loan with them number one and second I want them to pay me the ******* I lost last year for this loan actually being in default when they said it was not

03/16/2016Problems with Product / Service | Read Complaint Details
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Complaint
In general, this complaint pertains to various actions by EdFinancial which have lengthen the lifetime of my loan resulting in increased interest payments.
In addition, they have decreased the level of transparency and access to information that would allow me to protect my financial interest.

EdFinancial purchased my student loans sometime around March 2012. I received a document, not a new promissory note, informing me of the change in lender and that the terms of the loan would be the same; I would not be seeing any differences in payment exc.. Despite that, my payments went slightly down.
Since they have owned my loan, I'm barley making a dent in the principle. When I tried to figure out why, I was told that they don't have a copy of the legacy data pertaining to my payments prior to purchasing my loans, or a new promissory note for comparison.

Desired Settlement
I would like a copy of my original loan agreement to be compared to the current agreement by a expert, at their expense.

Business Response
The Federal Direct Consolidation Loan we service was issued under Part D, Title IV of the Higher Education Act of 1965 (HEA), as amended, 20 U.S.C. 1070 et seq. The making and servicing of this loan is governed by the HEA and the rules and regulations promulgated thereunder. Under the terms of the promissory note and the applicable laws governing your student loan, you are obligated to pay the full amount of principal and interest owed or have your loan discharged pursuant to a specific discharge provision under the HEA.

On 03/15/12, the U.S. Department of Education ("the Department") transferred the servicing of your student loan from the Direct Loan Servicing Center to Edfinancial Services. Like the Direct Loan Servicing Center, Edfinancial is a contracted servicer of federal student loans. The owner of your loan remains as the Department and your requirement to repay the Department has not changed. At your request, we have mailed you a copy of the Federal Direct Consolidation Loan Application you electronically signed on 04/05. Please note that the terms and conditions of the original application remain in effect, and the transfer of your consolidation loan to a different servicer does not affect your rights and responsibilities under that loan.

Our records indicate your consolidation loan was originally disbursed on 06/05. Your loan remained in an in-school status through 01/06 and was subsequently granted a six-month grace period ending 07/06. The interest rates for federal student loans are determined by federal law. In accordance with §685.202, the interest rate on your consolidation loan was based on the weighted average of the interest rates on your underlying loans, rounded to the nearest higher one-eighth of one percent. Your consolidation loan entered repayment in July 2006, and the first payment on your account was due on 08/06. At your request, your loan was placed on an Extended Standard repayment plan with a loan term of 300 months.
Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
I accept this "would like your minimum monthly payment expected payoff date of your loan would be approximately June 2029."
I do not accept the fact that I've paid over $$ in interest last year when I should have paid less.

I also do not accept you company requiring me to provide "written" documentation to change my term, but you're system can do it without written confirmation by me. Requesting written request delays, and probably discourages some from changing terms. However, since this is YOUR policy, you should adhere to it in all cases; hence, NOT change terms of those in good standing WITHOUT written consent. Therefore, you should be required to retroactively calculate and credit my interest.

03/08/2016Billing / Collection Issues | Read Complaint Details
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Complaint
I was told the wrong pay off amount on the phone then sent to collections with no other notice.
I had been working on my credit for 10 years and until this issue it was in the upper 790's. This is regarding three student loans from 1994. The loans were consolidated and a company called EdFinancial took that over from another company called ******* ***** that I had been paying and I've been paying off for years - more than the minimum every month so I could finish early. (btw, this act also negatively affected my credit though I had nothing to do with it but it looked like I had six loans out on my credit reports and that was an issue for YEARS. Then when EdFinancial updated and redid their website and gave me new account numbers it looked like I had NINE loans out on my credit report for years).**** 2014 After paying off this loan every month on time for years, more than what was owed every month, I made what I believed to have been my last payment for the remaining balance. ***** 2015 I received a phone message from EdFinancial. I found that strange since I believed I had paid off the loan the year before and I called back to ensure everything was in order. I was told I still owed a total of ******* I was confused, expressed this to EdFinancial and made it entirely clear that it had been my intention to completely pay off the balance the year before.. EdFinancial insisted I owed the ****** so I asked if that was the final total and that would be the end of it because I would like the complete pay-off amount and was told YES. I also asked for this in writing. I paid *** just to ensure there were no hidden fees, it would be finished, and waited for a letter stating this which I never received but I also didn't receive another phone call, email or letter from EdFinancial until**** 2015 I received a phone message from **** collection agency asking to call them back. That's extremely unusual being I have worked on my credit for 10 years and pay close attention to debts so I called them back. They informed me that I owed several ******** of dollars in collections to EdFinancial and they wanted to collect it. I explained to them exactly what I had explained above in this letter and was connected with EdFinancial who told me I somehow still owed ****** with no explanation why or why I wasn't contacted before going to collections or why in March I was told on the phone by EdFinancial that I was finished paying off my loan. Regardless, at the end of July ***** I paid EdFinancial the ******* terrified it would end up on my credit report that I had been working so hard to maintain. AUGUST **** I was still receiving phone messages from **** regarding collections. EdFinancial reported the ****** to all the credit report agencies under three different loans of lesser amounts **** **** *** or something similar) because originally in 1994, it had been three loans but later consolidated into one. So my credit was damaged by three instances of being late when my husband and I are trying to buy a house. EdFinancial gave me false payoff information. I'd have been happy to pay off the total because obviously I don't want my **** ruined over a *** bill. They claim they never spoke to me (because I called them back after getting a phone message) but if that were the case why would have I sent them a *** payment out of nowhere? They never sent me anything in writing despite having my new address, which I gave to the EdFinancial agent in March, and never contacted me again after I was given the false payoff information UNTIL after I called them asking why it was sent to collections in July *****. EdFinancial has reported the issue as THREE different loand on my credit report despite the fact the loans were consolidated into one payment to them - thus making the impact of *** devastating to my credit.

Desired Settlement
I would like the instances removed from my report due to the faulty information given to me by EdFinancial - or at the VERY LEAST have the completely paid off loan reduced to 1 late payment on my credit reports instead of 3 since the loans were consolidated into one payment to Edfinancial to begin with.

Business Response
The Federal Stafford Loans we previously serviced were issued under Part B, Title IV of the Higher Education Act of 1965 (HEA), as amended, 20 U.S.C. 1070 et seq. The making and servicing of these loans is governed by the HEA and the rules and regulations promulgated thereunder. In accordance with the HEA, we are required to report information concerning the repayment status of your loans to the consumer reporting agencies, and under the provisions of the Fair Credit Reporting Act (FCRA), any delinquent reports made on your account will remain on your report for seven (7) years from the time that they were originally reported. On **** ** 2014, we received a payment of ****** on your account; of this amount, ***** satisfied outstanding interest on your account, and the remaining ****** was applied to the outstanding principal balance on your loans. The payment decreased the principal balance on your account from ******* to ******* and it paid your account ahead through January ***** Although your account was in a paid ahead status, your loans continued to accrue interest and we continued to send monthly statements on your account. Your account became due for payment on 02/21/15 in the amount of ******* however, payment was not received, and your account became delinquent. In accordance with the HEA, we attempted to contact you by mail and by phone regarding the outstanding delinquency on your account. Your complaint alleges that you contacted us in March ***** and we advised you that the total balance owed on your loans was ******* Please note that we have no record of a conversation taking place in March ***** Our records indicate that you utilized our automated voice response system on ********* and you submitted a payment of ****** on ********* of this amount, ***** satisfied outstanding late fees, ***** satisfied outstanding interest, and the remaining ****** was applied to the principal balance. The payment brought your account current as of ******** and decreased the principal balance on your account from ****** to ******* On ********* your account was due for the remaining balance of ******* which would have paid your loan in full; however, a payment was not received, and your account once again became delinquent. We continued sending monthly statements as well as past due notices advising you of the outstanding principal balance and outstanding delinquency on your account. Your account remained delinquent and was reported as such to the nationwide consumer reporting agencies on ********* On ********* you contacted us by phone with the guarantor of your loans, Educational Credit Management Corporation (ECMC). We advised you that the total payoff balance on your account as of ******** was ******* and you submitted a payment of ****** on ********* Our records indicate that when you contacted us on 07/24/15, you requested that we update the address on your account from the ********* ****** ********** address to the current Bainbridge Island, Washington address. We advised that numerous statements were sent to the ********** address, and we had not previously received any returned mail from the U.S. Post Office or updated address information from you. On ********* we mailed a paid in full letter to the updated Washington address, and we reported your loans as paid in full to the consumer reporting agencies on ********* We are required to submit true and accurate credit reporting on your loans to the nationwide consumer reporting agencies. There are three separate loans on your account, and each loan is reported under a separate tradeline. The delinquent report made on your loans in June 2015 was reported accurately, and under the provisions of the Fair Credit Reporting Act (FCRA), the delinquency reporting from June 2015 will remain on your report for seven (7) years from the time that they were originally reported.

02/22/2016Billing / Collection Issues | Read Complaint Details
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Complaint
Double reporting to credit bureaus
Ed Financial changed their billing system which in turn changed my account numbers. Now I have 6 accounts being reported instead of the 3 I had and all six show as being in a negative status. Ed Financial is paid in full and closed.

Desired Settlement
I want the duplicate entries deleted from all 3 credit bureaus and the remaining 3 accounts to be reported as paid in full.

Business Response
The Federal Stafford Loans we previously serviced were issued under Part B, Title IV of the Higher Education Act of 1965 (HEA), as amended, 20 U.S.C. 1070 et seq. The making and servicing of these loans is governed by the HEA and the rules and regulations promulgated thereunder. In accordance with the HEA, we are required to report information concerning the repayment status of your loans to the consumer reporting agencies, and under the provisions of the Fair Credit Reporting Act (FCRA), any delinquent reports made on your account will remain on your report for seven (7) years from the time that they were originally reported.

We began servicing your Federal Stafford Loans in December 2007, and we began reporting on your account to the consumer reporting agencies in February 2008. Each of your Federal Stafford Loans had a separate tradeline on your credit report, and the account number associated with each of the three loans consisted of your account number followed by "ED" then the loan's sequence number. In October 2011, your account became delinquent due to non-payment. We attempted to notify you via phone and mail of the delinquency; however, your loans remained past due and were reported as such from December 2011 through October 2012.

In November 2012, your account was transferred to our new servicing system and assigned a new account number. The previous tradelines on your loans were reported as closed in November 2012 due to your loans being "transferred/sold," and we began reporting your loans under new tradelines beginning November 2012. The delinquency on your account remained outstanding, and the loans were reported as delinquent under the new tradelines beginning November 2012 and continuing until the loans defaulted and were paid by the guarantor, Texas Guaranteed Student Loan Corporation (TGSLC) in April 2013.

In the event that you default due to non-payment, we are required to report the default to the nationwide consumer reporting agencies. Absent the completion of loan rehabilitation with the guaranty agency, our credit reporting will remain as is, even in the event that you pay your loans in full. As we received no notice of rehabilitation, we have not removed the default status from your credit history. In addition, the delinquent reports made on your loans were reported accurately, and under the provisions of the FCRA, these items will remain on your report for seven (7) years from the time that they were originally reported.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Just because you changed billing systems, it should only be the 3 accounts, not 6 that are showing negative. And all 3 are paid in full due to being transferred and are current. Please delete 3 accounts to only show as 3 being serviced by your company. And correct the one you just switched to being in default.

Final Business Response
Edfinancial Services is committed to providing exceptional customer service and we apologize that you are unsatisfied with our prior response.

As previously advised, we are required to report information concerning the repayment status of your loans each month to the nationwide consumer reporting agencies (CRAs). In November 2012, we submitted the final reporting on the previous tradelines on your loans, and the tradelines were closed due to your loans being "transferred/sold." We began reporting your loans under the new tradelines in November 2012; however, the previous tradelines are not deleted because they report the status of your loans while they were on our previous servicing system. The credit reporting was not duplicated as the previous tradelines covered the reporting of your account from February 2008 through November 2012, and the new tradelines covered the reporting of your account from November 2012 through April 2013.

According to our records and the National Student Loan Data System (NSLDS, nslds.ed.gov), your loans defaulted due to non-payment and were transferred to TGSLC in April 2013. As previously advised, we are required to report the default to the CRAs, and the reporting will remain as is unless the loans are subsequently rehabilitated. If the loans defaulted and were later paid in full without being rehabilitated, the default reporting will remain on your credit report. If you have documentation showing that your loans were rehabilitated after the default in April 2013, please provide us with this information.

In accordance with the HEA, we have submitted true and accurate reporting to the CRAs, and under the provisions of the FCRA, these items will remain on your report for seven (7) years from the time that they were originally reported.

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BBB file opened: 01/31/2008Business started: 01/01/1996
Type of Entity

Limited Liability Corporation

Business Management
Principal: Mr. Anthony Hollin (President/CEO)Customer Contact: Ms. Wanda Hall (Vice President-Compliance)
Contact Information
Mr. Steven Beasley (Senior Vice President/CFO)Mr. John Farinella (Executive Vice President)
Number of Employees

432

Business Category

Financial Services

Products & Services

This company offers Education Loan Servicing


Customer Review Rating plus BBB Rating Summary

EdFinancial Services, LLC has received 3.7 out of 5 stars based on 1 Customer Review and a BBB Rating of A+.

BBB Customer Review Rating plus BBB Rating Overview

Map & Directions

Map & Directions

Address for EdFinancial Services, LLC

298 N. Seven Oaks Drive

Knoxville, TN 37922

To | From

LocationsX

1 Locations

  • 298 N. Seven Oaks Drive 

    Knoxville, TN 37922(865) 342-5500
    Fax: (865) 692-6306

Industry Comparison ChartX

The information in the table below represents an industry comparison of businesses which are of the same relative size. This is based on BBB's database of businesses located in Greater East Tennessee. Businesses may engage in more than one type of business. The percent of time the business engages in a type of business is not accounted for. There is no known industry standard for the number of complaints a business can expect. The volume of business and number of transactions may have a bearing on the number of complaints received by BBB.

*EdFinancial Services, LLC is in this range.

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Types of Complaints Handled by BBB

BBB handles the following types of complaints between businesses and their customers so long as they are not, or have not been, litigated:

  • Advertising or Sales
  • Billing or Collection
  • Problems with Products or Services
  • Delivery
  • Guarantee or Warranty

We do not handle workplace disputes, discrimination claims or claims about the quality of health or legal services.

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BBB Complaint Process

Your complaint will be forwarded to the company within two business days. The company will be asked to respond within 14 days, and if a response is not received, a second request will be made. You will be notified of the company's response when we receive it (or notified that we received no response). Complaints are usually closed within 30 business days.

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BBB began including complaint response text in BBB Business Reviews as of November 2012.

BBB reports the complaint response text for all reportable complaints against a business that are received electronically.

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Industry Tips for Financial Services

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What is BBB Advertising Review?

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What government actions does BBB report on?

BBB reports on known government actions that are relevant to the business's marketplace dealings with the public.

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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.

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What is a BBB Business Review?

We offer free reviews on businesses that include background, licensing, consumer experience and other information such as governmental actions that is known to BBB. These reviews are provided for businesses that are BBB accredited and also for businesses that are not BBB accredited.

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BBB Reporting Policy

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.