Date Received: 2023-12-29
Issue: Problem with a company's investigation into an existing problem
Subissue: Was not notified of investigation status or results
Consumer Complaint: MOHELA Attn : Customer Relations XXXX XXXX XXXX XXXX, MO XXXX Subject : Notice of Violations and Request for Remediation Dear MOHELA Legal, I have sent Mohela a dispute via their online portal in XXXXXXXX XXXX XXXX. Mohela has failed to investigate the information. Mohela information does not match up with Department of Education or Federal Student Aid. Mohela is in violation of the FCRA, FDCPA, and the FERPA Act. I continuously to reach out to this company about 19 inaccurate accounts on my credit report, and they have failed multiple times to fix this issue or permanently delete this information. I want to make sure that I'm exercising my rights with good faith and clean hands, but I believe at this point I need to file a lawsuit because nothing is being done. I also spoke to Mohela today on XX/XX/XXXX and the agent XXXX and she stated her ID number was XXXX. XXXX told me that this Company has no dispute process so they will continue to negligently report with no disclosures. This is a serious problem, and I will not tolerate it no more. I am writing to express my deep concern and disappointment regarding multiple violations of federal laws by MOHELA, the loan servicer handling my educational loan account. It has come to my attention that there have been significant breaches of the Privacy Act of 1974, the Fair Credit Reporting Act ( FCRA ), the Truth in Lending Act ( TILA ), and the Family Educational Rights and Privacy Act ( FERPA ). Details of the Violations : Privacy Act of 1974 : MOHELA has failed to uphold the provisions of the Privacy Act of 1974 by improperly handling and disclosing my personal information. This violation compromises the security and confidentiality of my sensitive data. Fair Credit Reporting Act ( FCRA ) : I have discovered inaccuracies on my credit report due to MOHELA 's reporting practices. These inaccuracies have led to adverse effects on my credit standing, violating the FCRA 's provisions related to accurate reporting and dispute resolution. Truth in Lending Act ( TILA ) : MOHELA 's actions have raised concerns about compliance with the TILA, particularly in providing accurate and transparent information about my loan terms, interest rates, and other pertinent details. Family Educational Rights and Privacy Act ( XXXXRPA ) : MOHELA has failed to safeguard the confidentiality of my educational records, violating the FERPA 's provisions that protect the privacy of student education records. Requested Action : I am requesting immediate remediation for the aforementioned violations. Specifically, I am seeking compensation in the amount of {$20000.00} for the emotional distress, financial hardship, and mental anguish caused by MOHELA 's actions throughout the year XXXX. This amount is reflective of the cumulative impact on my credit report and overall well-being. Additionally, I expect MOHELA to take the following corrective actions : Address Credit Report Inaccuracies : Review and rectify any inaccuracies on my credit report resulting from MOHELA 's reporting practices. Enhance Privacy and Security Measures : Implement enhanced measures to safeguard the privacy and security of customer information, in adherence to the Privacy Act and XXXX. Provide Transparent Loan Information : Ensure compliance with TILA by providing clear and accurate information about loan terms, interest rates, and other relevant details. Documented Assurance of Compliance : Provide a written assurance that MOHELA will take immediate steps to rectify these violations and establish protocols to prevent future breaches of federal laws. Failure to address these concerns within [ reasonable timeframe, e.g., 30 days ] will leave me with no choice but to pursue legal remedies available under the applicable federal laws. I trust that MOHELA will treat this matter with the urgency and seriousness it deserves. Please direct any correspondence related to this matter to [ Your Phone Number ] or [ Your Email Address ]. Sincerely, [ Your Full Name ] I have sent Mohela a dispute via their online portal in XXXX of XXXX. Mohela has failed to investigate the information. Mohela information does not match up with Department of Education or Federal Student Aid. Mohela is in violation of the FCRA, FDCPA, and the FERPA Act. I continuously to reach out to this company about 19 inaccurate accounts on my credit report, and they have failed multiple times to fix this issue or permanently delete this information. I want to make sure that I'm exercising my rights with good faith and clean hands, but I believe at this point I need to file a lawsuit because nothing is being done. I also spoke to Mohela today on XX/XX/XXXX and the agent XXXX and she stated her ID number was XXXX. XXXX told me that this XXXX has no dispute process so they will continue to negligently report with no disclosures. This is a serious problem, and I will not tolerate it no more. MOHELA Attn : Customer Relations XXXX XXXX XXXX XXXX, MO XXXX Subject : Notice of Violations and Request for Remediation Dear MOHELA Customer Relations, I am writing to express my deep concern and disappointment regarding multiple violations of federal laws by MOHELA, XXXX loan servicer handling my educational loan account. It has come to my attention that there have been significant breaches of the Privacy Act of 1974, the Fair Credit Reporting Act ( FCRA ), the Truth in Lending Act ( TILA ), and the Family Educational Rights and Privacy Act ( FERPA ). Details of the Violations : Privacy Act of 1974 : MOHELA has failed to uphold the provisions of the Privacy Act of 1974 by improperly handling and disclosing my personal information. This violation compromises the security and confidentiality of my sensitive data. Fair Credit Reporting Act ( FCRA ) : I have discovered inaccuracies on my credit report due to MOHELA 's reporting practices. These inaccuracies have led to adverse effects on my credit standing, violating the FCRA 's provisions related to accurate reporting and dispute resolution. Truth in Lending Act ( TILA ) : MOHELA 's actions have raised concerns about compliance with the TILA, particularly in providing accurate and transparent information about my loan terms, interest rates, and other pertinent details. Family Educational Rights and Privacy Act ( FERPA ) : MOHELA has failed to safeguard the confidentiality of my educational records, violating the FERPA 's provisions that protect the privacy of student education records. Requested Action : I am requesting immediate remediation for the aforementioned violations. Specifically, I am seeking compensation in the amount of {$20000.00} for the emotional distress, financial hardship, and mental anguish caused by MOHELA 's actions throughout the year XXXX. This amount is reflective of the cumulative impact on my credit report and overall well-being. Additionally, I expect MOHELA to take the following corrective actions : Address Credit Report Inaccuracies : Review and rectify any inaccuracies on my credit report resulting from MOHELA 's reporting practices. Enhance Privacy and Security Measures : Implement enhanced measures to safeguard the privacy and security of customer information, in adherence to the Privacy Act and XXXX. Provide Transparent Loan Information : Ensure compliance with TILA by providing clear and accurate information about loan terms, interest rates, and other relevant details. Documented Assurance of Compliance : Provide a written assurance that MOHELA will take immediate steps to rectify these violations and establish protocols to prevent future breaches of federal laws. Failure to address these concerns within [ reasonable timeframe, e.g., 30 days ] will leave me with no choice but to pursue legal remedies available under the applicable federal laws. I trust that MOHELA will treat this matter with the urgency and seriousness it deserves. Please direct any correspondence related to this matter to - ( XXXX ) Sincerely, XXXX XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 30168
Submitted Via: Web
Date Sent: 2023-12-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-29
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I have tried many, many times to get in touch with Mohela to ask questions about how they have my XXXX loans documented on their website. I can never get through to them. Their hold times are impossibly long, and they do not reply to messages, despite saying any message will be replied to in XXXX business days. If Mohela can't handle the volume of phone calls or messages, they should not be in this business! I need information about my loans. I pay on time, and I need to know everything is being accounted for correctly. It is impossible getting in touch with Mohela!
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 10003
Submitted Via: Web
Date Sent: 2023-12-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-29
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: I was notified on XX/XX/2023, by Mohela that my student loans had been forgiven. I visited my Mohela online student loan account and the balance had been reduced to {$0.00} and status updated to paid off. I have been waiting for 4 months to see if the student loan balance would come off any of my credit reports. It has not. I contacted Mohela by email onXX/XX/2023. They responded today ( XXXX XXXX ) with a " blanket '' statement saying that they update credit bureau information monthly. However, that can not be otherwise the student loans would be off my report back in XXXX or XXXX and they are still on my report. I was told that I should wait three months to give it time to resolve. However, as of XXXX and more than 4 months, the student loans are still listed on my credit reports with the old outstanding balandce.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: KS
Zip: 665XX
Submitted Via: Web
Date Sent: 2023-12-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-29
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Mohela placed me on administrative forbearance while they processed my XXXX application. They have not processed my application in a timely manner and have now placed me back into a XXXX year repayment. They need to rectify this situation prior to XXXX billing statement.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NC
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-12-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-29
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: XXXX called and got a lower monthly payment. The payment was supposed to be {$290.00}. XXXX made first payment of {$290.00} XXXX mohela servicer took {$760.00} of bank account without warning XX/XX/23 called and asked why this amount came out without my knowledge or permission. The XXXX XXXX hung up on us because she didnt want to deal with us. The XXXX XXXX helped us and told us to resubmit for the lower payment then disbute the charge with the bank because they couldnt refund the {$760.00}. The bank froze all my bank accounts and now I cant access anything because mohela took money out they were not permitted too.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 15301
Submitted Via: Web
Date Sent: 2023-12-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-30
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I am in an XXXX program and XXXX on all my loans with MOHELA. I was placed into admin forbearance with no notice or explanation and can not get Mohela to respond or explain. I have had a new employment certification form listed as processing since XX/XX/16. I just want to be done with this process as it has been horrible. I just want some answers.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NE
Zip: 68116
Submitted Via: Web
Date Sent: 2023-12-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-30
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I paid {$260.00} for my first bill that was due XX/XX/XXXX and my payment was adjusted to {$26.00} per month starting XX/XX/XXXX. I tried calling MOHELA before XXXX to verify my payment as it was unaffordable but I was unable to contact any representative. I want to request a refund for the incorrect amount I was asked to pay in XX/XX/XXXX.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WA
Zip: 99223
Submitted Via: Web
Date Sent: 2023-12-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-30
Issue: Dealing with your lender or servicer
Subissue: Need information about your loan balance or loan terms
Consumer Complaint: I had mailed, called, and submitted messages on their site in regards to PSLF information including month count and processing and have not been given any information in regards to this. My forms have been " Processing '' for XXXX months now. As they were originally mailed in the middle of XXXX and were then listed as received in the first week of XXXX, I have heard nothing since despite repeated attempts at contact.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 015XX
Submitted Via: Web
Date Sent: 2023-12-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-29
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I submitted a XXXX form on XX/XX/XXXX and an IDR on XXXX. As of XX/XX/XXXX, neither had been processed, so I called to inquire. Instead of processing my applications, the XXXX cancelled both documents which is NOT what I asked her to do. She listed my XXXX form as a duplicate which is 100 % untrue and cancelled my IDR which is NOT what should have happened. Im required to recertify my IDR for XXXX.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 17044
Submitted Via: Web
Date Sent: 2023-12-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-29
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: -- Issue Summary -- 1. Issue with Statement Billing : Loan servicer statements provided to borrowers on XXXX plans do not clearly indicate that the portion of their XXXX payment that is applied to their principal is reduced daily from the statement date, and that waiting until their due date may negatively impact them financially as their payment towards the loan principal is reduced. A due date implies that there will be no negative impacts if paid prior to that date. As a result, borrowers are negatively impacted when an XXXX payment made on the due date may no longer covered unpaid interest, and no portion of their payment is applied to their loan principal as anticipated per their billing statement, and as it would have been applied if paid on the statement date. 2. Issue with Autopay : According to the Federal Student Aid website, " If you sign up for auto pay, youll pay 0.25 % less in interest each month. '' This auto pay discount is also heavily advertised on loan servicer websites, including reminders that you will save XXXX amount if you sign up for autopay. However, loan servicers schedule autopay for the payment due date, and do not provide options for payment on the statement date or other sooner dates, resulting in interest accrual on loans prior to the due date. This negatively impacts borrowers on the XXXX income driven repayment plan. According to the Federal Student Aid website, " The XXXX XXXX eliminates 100 % of remaining monthly interest for both subsidized and unsubsidized loans after you make a scheduled payment. '' Because this full pay off of all accrued interest only occurs " after payment, '' loan servicers that limit autopay to the statement due date and apply the borrower 's payment to interest accrued as of that date negatively impact borrower 's ability to apply their payment to their principal balance. -- My situation -- The issues described above have impacted me since I began repayment after the federal student loan pause. Prior to repayment resuming, I was approved for the XXXX XXXX for income driven repayment, and I had no unpaid interest outstanding on any of my federal student loans. Due to the issues outlined above and described in detail below, my loans have been negatively impacted, and I am concerned about the implications for all student loan borrowers. XXXX. Issue with Statement Billing : With my prior servicer, XXXX XXXX, I received my first billing statement showing that my XXXX payment would fully cover unpaid interest on my loans, with the remaining payment amount applied to the loan principal. However, when I made my full payment prior to the due date, my payment did NOT cover all the interest accrued on my account ( as shown in the statement ) because interest had accrued between the statement date and the due date. I thought this was an error, so I contacted both XXXX and Federal Student Aid requesting my payment be applied per my statement. I received responses from both entities explaining interest had accrued between my statement and due date, which I was already aware of. However, I had assumed my payment would be applied as shown in my statement because I am on an XXXX Plan. The responses from both parties fail to recognize a fundamental issue with statement billing and repayment because it is not reasonable for a consumer to assume they will be impacted negatively by paying on or before the due date. A due date implies that there will be no negative impacts if paid prior to that date. However, I was negatively impacted because my payment no longer covered my unpaid interest, and therefore no portion of my payment was applied to my loan principal as it would have been if paid on the statement date. This is an issue that affects all borrowers, and particularly borrowers on XXXX plans. XXXX. Issue with Autopay : After my first payment through XXXX, I received a notice that I wasn't signed up for XXXX, and that I would receive a monthly discount for doing so. I signed up for auto pay for future payments to receive the advertised discount. After signing up for autopay, I was again debited on my due date, and my payment, which should have covered all unpaid interest as of the statement date and then applied to my principal, only went to accrued interest. After this happened, I investigated my autopay options through the servicer, and confirmed they did not offer an option through the online portal to schedule autopay for the statement date. The following month, my servicer was changed to MOHELA because I certified employment qualifying for XXXX. Again, the servicer advertised discounts available to sign up for autopay, and again, I investigated autopay options, and MOHELA only offered autopay on the due date with no early options. MOHELA advertised that I would save $ XXXX if I enrolled in XXXX, which would be LESS than the interest I would accrue, and therefore reduce my principal payment by, if I enrolled in autopay that was debited on the due date. I am not currently enrolled in autopay because it would be financially disadvantageous, and I would like my payments debited on the statement date to receive the most benefit of my XXXX payment. -- Why CFPB should take action -- XXXX ) It is a deceptive practice for consumers to receive a billing statement showing how their payment will be applied to their loans and interest without a clear disclaimer next to both the " due date '' and " unpaid interest '' calculation that these calculations only reflect unpaid interest as of the statement date and payments applied after the statement date will be applied to interest accrued as of that date, not per the statement. While there is a blanket statement about interest near the bottom of the statement, it is especially not clear to borrowers on the XXXX XXXX that when they make their payment on or before the due date, their payment XXXX not cover the interest as displayed in their statement because more interest has accrued since they received the statement, and none of their payment XXXX end up going to their principal balance. This is deceptive because reasonable consumers will rely on their statement to be an accurate reflection of how their payment will actually be applied on the due date, not how the payment would theoretically be applied if they paid on the statement date. It is also deceptive because a due date implies there are no negative consequences as long as you pay by that date. XXXX ) It is a deceptive practice to advertise a discount for autopay that results in an increased cost to the borrower due to accrued interest when autopay is debited on the due date. For many borrowers, the autopay " discount '' is less than the interest that will accrue as a result of loan servicer practices that autodebit on the payment due date, instead of offering options for debit on the statement date. Therefore there is no autopay " discount '' for many borrowers, but in fact, an autopay penalty. XXXX ) Loan servicer practice of autodebiting on the due date negatively affects consumer use of a government benefit through an auto pay discount. By not providing an option to schedule auto pay for the statement date, loan servicers are benefiting from denying a government benefit by collecting more in interest payments from XXXX borrowers. Further, the consequences of this issue should merit not only requiring loan servicers to offer autopay on the statement date, but defaulting and/or prioritizing that option.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MN
Zip: 55412
Submitted Via: Web
Date Sent: 2023-12-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A