Date Received: 2024-01-17
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On XX/XX/XXXX, I called Mohela and learned my account was on forbearance until XXXX XX/XX/2023. I was asked if I wanted a refund of the payment I made on XX/XX/XXXX, and I opted to have my payment amount applied to my XXXX statement. When I checked my account XX/XX/XXXX. I saw my payment hadn't been applied. The issue was escalated and I was told to wait XXXX business days for the issue to be corrected. It's now XX/XX/XXXX, the day before my due date and there's been no change to my account. Furthermore, account notices are not current. When I log in I see that my Account Alerts show that my account is still being updated. Note says to allow up to 30 days for updates, but there's no start date to indicate when the 30 days started.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 79936
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/XXXX I applied for debt consolidation and for the SAVE repayment plan. My debt was consolidated, but they never placed me on the SAVE plan. I reapplied for the same IDR plan, but I have still not been placed on it. On XX/XX/XXXX, I was placed on a one month forbearance. By the end of that month, my plan had still not been processed. I called Mohela around XX/XX/XXXX, to discuss the matter. They claimed to be expediting my application, and placed me on another forbearance. This one expired XX/XX/XXXX, and I was charged at the normal rate, rather than an iDR. I was unable to contact Mohela at that time due to the holidays. To avoid failing to pay my loans, I paid that {$990.00}, {$600.00} more than I ought to owe. I called Mohela again on XX/XX/XXXX. They offered again a forbearance, to expedite my SAVE Application, and to refund my payment. None of that has happened this week. I can not afford to make these payments at this rate, I have submitted my application months ago, and every month I am not paying on the SAVE plan, I am also not making qualifying PSLF payments, massively increasing the money I will eventually pay on my loans. I feel I have done everything right, but Mohela has no interest in supporting me.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 02139
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-17
Issue: False statements or representation
Subissue: Attempted to collect wrong amount
Consumer Complaint: I am a student loan borrower who has historically been serviced by XXXX until recently being switched to MOHELA. On XX/XX/XXXX, I applied for the SAVE Income-Driven Repayment ( IDR ) plan on the Federal Student Aid website. My monthly payments under this plan were set to be {$0.00} XXXX XXXX XXXX XXXX My loans were transferred to MOHELA in XXXX XXXX XXXX This was a result of being approved for Public Student Loan Forgiveness ( PSLF ). On XX/XX/XXXX, MOHELA charged me {$180.00}. My bill from XXXX said I had a {$0.00} XXXX XXXX XXXX XXXX payment due on XX/XX/XXXX, so I was unsure why I had to pay {$180.00} when my loans were transferred. I called MOHELA on the due date ( XXXX XXXX to inquire why I was charged when my payments are set to be {$0.00} on the IDR plan I am currently on. The woman I spoke to said she didn't know why, and said she would ask her supervisor. I was on hold for a while longer, to which she said her supervisor didn't know either. I paid the {$180.00} to prevent my account from becoming delinquent. I went back to the Federal Student Aid website to recertify my IDR plan on the same day after the phone call XXXX XXXX XXXX thinking that would help. It still says my payments should be {$0.00} each month given my financial status, loan amount, filing status, etc. The IDR has been submitted to MOHELA, but still has not been processed as of XXXX The following month, I received another bill for the same amount ( {$180.00} ) with a due date of XXXX I paid it, again, in fear of becoming delinquent. Now, I have suddenly been placed into a completely different repayment plan without ANY notification. This repayment plan is called the " Standard/Level '' plan, and makes my payments {$420.00} a month. I did not switch payment plans and have always wanted all my loans to be on the SAVE plan. Today, XX/XX/XXXX, I went ahead and manually submit ANOTHER IDR plan on the Federal Student Aid website, which still says my monthly payments should be XXXX On top of all of this, MOHELA has entered my employer 's information incorrectly for PSLF. While I am still actively employed by my employer, my employer has an " end date '' listed in my MOHELA account, meaning the payments that I am making do not count towards PSLF because my employer is not certified correctly. I have never left my job and have always been working here, and do not know why there is an end date listed when I have submitted all the proper forms. Of course I submitted a manual PSLF application ( on XXXX XXXX to remedy this, but as of XXXX it has not been processed. I have also sent numerous messages on the secure chat center ( on XXXX XXXX XXXX XXXX and have gotten no reply.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: 23228
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-17
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: As explained previously, I am currently on the XXXX plan and have made the required payments each month since XX/XX/XXXX. However, each month my remaining interest balance has not been waived as required by the terms of the federal XXXX plan. This has caused my principal balance to go up each month, while interest continues to accrue, which means I am paying only against the interest each month instead of the principal as would occur if the remaining interest were properly waived after each month 's payment. This is also causing me to pay interest that wouldn't be required otherwise, as it would have been waived. I've reached out several times to Mohela, most recently via email on XX/XX/XXXX and only just received an email back on XX/XX/XXXX. The email notes that : " Thank you for contacting MOHELA, We apologize for any confusion. Please be advised that the Saving on a Valuable Education ( XXXX ) plan eliminates 100 % of remaining interest for both Subsidized and Unsubsidized loans after a scheduled payment is made under the XXXX Plan. This will only apply if the monthly payment amount established does not cover the monthly accumulated interest. For example : If {$50.00} in interest accumulates each month and you have a {$30.00} payment, the remaining {$20.00} of interest would not be charged. If your monthly payment amount is {$0.00} on the XXXX plan and you do not make a payment for that month, the interest that accrues throughout the month will not be charged. Please keep in mind that you may still see interest accruing daily on your account, however on the XXXX of each month for the month prior, that interest that accrued for the prior month will be cleared. '' Note the last sentence is directly contrary to what is occurring. I asked why my interest was not being waived as per MOHELA 's own words in this email and have not received any response. The lack of communication is clearly in bad faith and contrary to what they themselves say should be occurring. Thank you.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 124XX
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-17
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: I received a letter from Mohela on XXXX XXXX stating that my loans had been forgiven in full effective XXXX. My Mohela account show a XXXX balance and I called to verify that the loans were indeed forgiven and was told that they were. I have been checking my XXXX Credit report frequently since that time and the loans are still listed as open and with the full balance. I messaged Mohela and requested that the update the credit bureau information. They messaged me back a copy of the forgiveness letter but there was no comment about updating the credit bureaus. I then filed a dispute with the credit bureau but have not been notified of any action or resolution. I want to see the forgiven loan closed and paid in full on my credit reports. The last update Mohela did was in XXXX of XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: LA
Zip: 712XX
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-17
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I was approved by MOHELA for the SAVE repayment plan in XXXX of XXXX effective XXXX XXXX months. I made two payments without issues. Suddenly and abruptly with NO explanation, in the first week of XXXX, MOHELA placed me into a plan that increased my payments from {$1000.00} to over {$1800.00} per month ( LEVEL repayment ). I messaged them, waited on hold, sent them the confirmation of the approval in XXXX and then even reapplied for the SAVE plan AGAIN. No responses. The only response I keep getting from the company is that payments are overdue and now it says I owe almost {$3000.00}. They also send back " correspondence processing delay '' notices, that ultimately say it may take them up to 90 days to answer. A company should not be able to charge interest, increase payments, ignore applications, reverse applications with no explanation, and then tell customers to wait up to 90 days to get a response. Interest accumulates, my credit score is being impacted and there is no way possible for me to make these payments. I struggled paying {$1000.00}, but I made it a priority and did it, so I was in no way in default. The company randomly changes terms and then refuses to help customers. It's so unethical and frustrating and I know I am not alone. I'm also 17 payments away from loan forgiveness under PSLF, so it feels like this is intentionally disrupting that and making it impossible to keep working toward this forgiveness.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 138XX
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-17
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: CFPG Complaint : Per the FCRA, as a Federally protected consumer, I am now opting out of any and all authorization to report my information to a third party, I the consumer may have given you written, unwritten, verbal, and nonverbal per 15 USC 6802. According to The Fair Credit Act, 15 U.S. Code 1681, and 16 CFR Part 602, There is a need to ensure that consumer reporting agencies exercise their grave responsibilities, with fairness and a respect for the consumerss right to privacy. XXXX XXXX, XXXX, and XXXX are consumer reporting agencies and I am the consumer. 15 U.S. Code 6801 states that It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers nonpublic personal information., therefore I have the right to make sure that my private information isnt shared. Mohela is a financial institution by definition under that title. 15 USC 1681 states : ( a ) In general Subject to subsection ( c ), any consumer reporting agency may furnish a consumer report under the following circumstances and no other : ( 1 ) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury. ( 2 ) In accordance with the written instructions of the consumer to whom it relates. Mohela, the financial institution and the Consumer reporting agencies XXXX, XXXX, and XXXX do not have my consent to furnish this information and they do not have my written consent. Any and all consent to XXXX, XXXX, and Mohela, whether it verbal, non-verbal, written, implied, or otherwise is revoked per 15 USC 6802 b, which states, A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; ( B ) the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) the consumer is given an explanation of how the consumer can exercise that nondisclosure option. Mohela never informed me of my right to exercise my nondisclosure option. Also 15 USC 1681c states, Except as authorized under subsection ( b ), no consumer reporting agency may make any consumer report containing any of the following items of information : ( 5 ) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years This account is an adverse item they are reporting again without my permission which is against the law. 15 USC 1681s-2 ( A ) ( 1 ) states A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. 15 USC 1681e states Every consumer reporting agency shall maintain reasonable procedures designed to avoid violations of section 1681c of this title and to limit the furnishing of consumer reports to the purposes listed under section 1681b of this title. These procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose. XXXX and XXXX are not maintaining reasonable procedures. Also, 12 CFR 1016.7 states that a consumer has the right to opt-out at any time. I am exercising my right to opt out of your reporting services. 15 USC 1681 ( b ) ( 2 ) Subject to subsection ( c ), any consumer reporting agency may furnish a consumer report under the following circumstances and no other : ( 2 ) In accordance with the written instructions of the consumer to whom it relates. These companies do not have my written consent to add anything to my consumer report ; their furnishing information violates the Fair Credit Reporting Act. In 15 USC 1681c it says Except as authorized under subsection ( b ), no consumer reporting agency may make any consumer report containing any of the following items of information : ( 5 ) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years. No adverse item besides the convictions of crimes should be on my report. And any item that is a derogatory mark is not allowed into consumer reports, this is a violation as well. The Family Education Rights and Privacy Act ( FERPA ) ( 20 U.S.C. 1232g ; 34 CFR Part 99 ) is a federal law enacted in 1974 that protects the privacy of student education records. FERPA applies to all schools that receive funds under an applicable program of the U.S. Department of Education. 5 US Code 552a, important definitions : ( 4 ) the term record means any item, collection, or grouping of information about an individual that is maintained by an agency, including, but not limited to his education, financial transaction, medical history, and criminal or employment history and that contains his name, or the identifying number, symbol, or other identifying particular assigned to the individual, such as a finger or voice print or a photograph. This includes consumer reports. ( b ) Conditions of Disclosure- No agency shall disclose any record which is contained in a system of records by any means of communication to a person, or to another agency, except pursuant to a written request by, or with the prior written consent of, the individual to whom the record pertains, unless disclosure of the record would be ( 120 to a consumer reporting agency in accordance with section 3711 ( e ) of title 31. They need prior written instruction of the individual to whom it relates. Section 3711 ( e ) of title 31 states ( 1 ) When trying to collect a claim of the Government under a law except the Internal Revenue Code of 1986 ( 26 U.S.C. 1 et seq. ), the head of an executive, judicial, or legislative agency shall disclose to a consumer reporting agency information from a system of records that a person is responsible for a claim if ( E ) the head of the agency has established procedures to ( iii ) get satisfactory assurances from each consumer reporting agency that the agency is complying with all laws of the United States related to providing consumer credit information ; 15 U.S. Code 6805 - Enforcement ( a ) In general Subject to subtitle B of the Consumer Financial Protection Act of 2010 [ 12 U.S.C. 5511 et seq. ], this subchapter and the regulations prescribed thereunder shall be enforced by the Bureau of Consumer Financial Protection, the Federal functional regulators, the State insurance authorities, and the Federal Trade Commission with respect to financial institutions and other persons subject to their jurisdiction under applicable law, 16 CFR 313.7 Form of opt out notice to consumers ; opt out methods. ( a ) ( 1 ) Form of opt-out notice. If you are required to provide an opt out notice under 313.10 ( a ), you must provide a clear and conspicuous notice to each of your consumers that accurately explains the right to opt out under that section. The notice must state : 16 CFR 433.2 Preservation of consumers ' claims and defenses, unfair or deceptive acts or practices. In connection with any sale or lease of goods or services to consumers, in or affecting commerce as commerce is defined in the Federal Trade Commission Act, it is an unfair or deceptive act or practice within the meaning of section 5 of that Act for a seller, directly or indirectly 16 CFR 433.3 Exemption of sellers taking or receiving open end consumer credit contracts before XX/XX/XXXX from requirements of 433.2 ( a ). ( a ) Any seller who has taken or received an open end consumer credit contract before XX/XX/XXXX, shall be exempt from the requirements of 16 CFR part 433 with respect to such contract provided the contract does not cut off consumers ' claims and defenses.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AL
Zip: 35811
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-15
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: To begin with there is multiple issues in affect based on your options. They include : Trouble with how payments are being handled Don't agree with the fees charged Received bad information about your loan ( incorrect, incomplete, or inaccurate information ) Need information about your loan balance or loan terms The XXXX XXXX MOHELA is sending me does not reflect the conditions of my loan as post by the Federal Government. XXXX ) MOHELA billed a monthly cycle of {$1200.00} which they said was due on XX/XX/2023. This is in direct conflict with what the XXXX plan specified for my monthly payments. ( see attached ) Which is {$91.00} and the total amount to be paid off is {$48000.00}. An error of {$1100.00}. Please review PDF titled SAVE Repay XXXX. XXXX ) MOHELA Billing accounting does not show receipt of the amounts received in XXXX, XXXX, and XXXX MOHELA XXXX a XXXX letter stated they are willing to refund those amounts. I would like refunds of those amounts as offered. XXXX ) While MOHELA acknowledged my Income Driven Repayment plan from years prior to the XXXX XXXX repayment freeze, they have not acknowledged the transition to the SAVE- ( see attached ), repayment plan by name. XXXX ) Additionally, if the XXXX plan is applicable to my account, then XXXX sub components need to be articulated. a ) Specifics to the loan forgiveness should be documented and provided. b ) If the total loan balance is {$48000.00} as documented, then what are the terms and procedure for an early payoff? This should also be in the repayment terms c ) If the forgiveness amount is {$97000.00}, as indicated in the save plan it should also reflect in the accounting. MOHELA should confirm the accounting and address these issues, in writing. Otherwise they are encouraging default. Thank you for your attention to these matters. I can not address my loan repayment without clarity on these issues.
Company Response:
State: GA
Zip: 30052
Submitted Via: Web
Date Sent: 2024-01-15
Company Response to Consumer: In progress
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-16
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I have been filing out the PSLF form each year that I have worked for the State. Back in XX/XX/XXXX, I submitted my PSLF form and Mohela emailed and stated that the request was denied due to insufficient information. I called Mohela and resubmitted the form, confirmed the accuracy of the form submitted. I have been working for the State since XXXX, somehow since Mohela have taken over my loan, it has been difficult to verify my employment in order to get the eligible qualifying waiver towards my loan forgiveness. Since XXXX, I have made attempts to submit my PSLF form to verify my employer and it's always something. Finally in XX/XX/XXXX, I called, verified with a rep the PSLF form was filled out correctly and submitted. There is an employment verification gap from XX/XX/XXXX to XXXX XXXX again remindig that I have worked for the State since XXXX. When I submitted the form, I was told this would take 45 business days minimum. Finally on XX/XX/XXXX, I received an email that my account was updated and to my surprise the XXXX through XX/XX/XXXX gap is still there. Since then I have called 7 times, each time I am told there was an error on Mohela 's part, my account would be updated and noted. On XX/XX/XXXX, I requested to speak to a supervisor to ensure my account does get update. Spent over an hour on the phone and was not able to speak to a supervisor. I was told one would could me back within a business day or same day I called. Today XX/XX/XXXX, not only did I not get a call back from a supervisor ; I also called to speak to a rep yet again about my account that have not been updated. I was on a hold for a hour and 30 minutes, was able to briefly speak to a rep who wanted to verify my information even though during my call I had to punch in my ssn and date of birth. After a couple of attempt from rep to verify my ssn/dob, the call was dropped to no call back.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 02301
Submitted Via: Web
Date Sent: 2024-01-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-16
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: Mohela is reporting transaction history on my credit report and according to the Master Promissory Note they will not report transaction history. This is also a violation of my privacy under the Family and Privacy Act of 1974. You can not report without my consent. The Privacy Act protects individuals in three primary ways. It provides individuals with the right to request their records, subject to Privacy Act exemptions ; the right to request a change to their records that are not accurate, relevant, timely, or complete ; and the right to be protected against unwarranted invasion of their privacy resulting from the collection, maintenance, use, and disclosure of their personal information. Credit reporting is also incorrect.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WI
Zip: 53217
Submitted Via: Web
Date Sent: 2024-01-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A