Date Received: 2023-12-01
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: All 3 credit bureaus continue to report inaccurate information in regards to my federal student loans balance. Mohela the student loan servicer and the Department of Education the student loan lender both have a XXXX balance on my account and have verified that my Federal Student Loans are paid in full through student loan forgiveness XXXX program and that i currently have a XXXX balance. I do not owe {$64000.00} as stated on XXXX XXXX. This misinformation is causing me investment and financial problems with other institutions that I'm currently trying to do business with. I would like cfpb to investigate further into this matter as XXXX continues to display inaccurate information.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 11429
Submitted Via: Web
Date Sent: 2023-12-01
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-01
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: See attachment included below. In short, a presentment of tender of payment was made and I did not receive any notice that the presentment was dishonored. I asked for validation of debt, the company did not comply.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 02169
Submitted Via: Web
Date Sent: 2023-12-01
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-01
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Mohela is not counting many of my qualifying payments in the Public Service program as qualifying. I've tried calling them, but nobody answers the phone. Ever. I've written them, and they keep telling me they will respond within 15 days, but they never do. I contacted them in mid-XXXX. It is not XXXX. It has been WAY more than 15 days.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WY
Zip: 82801
Submitted Via: Web
Date Sent: 2023-12-01
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-02
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: I submitted a SAVE IDR plan to Mohela through studentaid.gov and when Mohela generated a monthly payment, it was way in excess of what I was paying before the pandemic and in excess of the loan calculator. I called Mohela on XX/XX/ and talked to a representative who said that there had been an error and she would resubmit with correct numbers and recalculate. It has been two months and this has not been done, and today XX/XX/ Mohela alerted me that my upcoming payment will be the same amount before I complained
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 104XX
Submitted Via: Web
Date Sent: 2023-12-02
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-02
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: This is not a customer service issue- it's a software issue. Mohela 's " security question '' for signing in does not properly function as a security question. Regardless of what question you receive, as long as you know the answer to another security question, you can enter it and it will let you log in. This is a vulnerability if any security question is ever leaked ( from Mohela or elsewhere ), the security question can just be bypassed regardless of if the leaked answer matches the question, if a user reuses their questions/answers for security questions. Why would you even select a random question for " security '' when you can use any of the answers to any of the questions that have been setup?
Company Response: Company can't verify or dispute the facts in the complaint
State: WI
Zip: 53719
Submitted Via: Web
Date Sent: 2023-12-02
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-01
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/XXXX, I checked my bank account and saw that it had a negative balance. After looking into the charges in my account, I saw that MOHELA, my student loan servicer, had withdrawn the entire balance of my student loans. XX/XX/XXXX was my payment date and I was enrolled in the auto-pay program. I enrolled before the payment pause ended, and my first auto-pay was XX/XX/XXXX. The payment amount should be {$260.00} and was taken out correctly on XX/XX/XXXX. On XX/XX/XXXX, the autopayment amount was somehow changed. Instead of withdrawing the normal {$260.00} payment, they withdrew {$14000.00}. This was the remaining amount owed on my student loan. I checked my messages in my account a saw they had sent a confirmation for that amount on XX/XX/XXXX ; however, I had not opened it because the XXXX payment had gone through correctly, I assumed the XXXX auto-pay would be correct as well. That, after all, is the purpose of auto-pay ; a simple way to ensure you have on-time payments without having to closely monitor the account. I called on the XXXX and they agreed that this was an error on their part and a significant issue. I was told that it would take 7 business days to cancel the payment. I was advised that the issue would be resolved more quickly if I worked with my bank to dispute the payment. So, I called my bank and they agreed to work with me to dispute the payment once it went through, as it was currently pending. When I checked the next day, the payment had not gone through, I believe because the account did not have sufficient funds. On XX/XX/XXXX I called MOHELA again to ask what to do now. At that time, my account was still showing that {$14000.00} payment, and that I no longer owed any money. I asked them, how I was supposed to make an on-time payment when the system showed that error. They said to wait a week for the system to update and list the correct payment amount. When I asked about making sure this payment would count towards XXXX, they recommended that I make a payment of the correct amount. I informed them that I did not feel comfortable doing that with a system that stated I did not owe anything. My fear was that I would make that payment, and they would just count the payment towards principal only when the balance was corrected. I this point I have no faith in their system. On XX/XX/XXXX I received an email informing me that my account has a past due payment. When I checked my account is now showed that the payment that is due is the entire balance of my student loan. So, on XX/XX/XXXX, I called again to ask what to do, since I can not pay the payment that the system is saying is due, and since that payment is incorrect as the agreed upon monthly payment is {$260.00}. The person I talked with said that they would likely put me in forbearance while the issue was being resolved, both they would pass me to the XXXX department to complete a help desk ticket. When I asked for some documentation stating that this was not my fault, they stated I would get a confirmation number of the help desk ticket. I was transferred to a XXXX representative named XXXX, who stated she was in training. After admitting the error, I was placed on numerous holds while they attempted to resolve the issue. I was then suddenly patched into a survey, and after completion the line disconnected. Despite providing a callback number and giving them permission to call me back if we get disconnected, I did not receive a call back. My concern now is that I am in the XXXX program. I am 7 payments away from being forgiven. I do not want my forgiveness delayed through this process. Additionally, I am not at fault in this process and do not feel I should be punished for their issue.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 217XX
Submitted Via: Web
Date Sent: 2023-12-01
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-30
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I initially contacted XXXX when I saw that my account was in Forbearance. I did not request this, but I did complete a borrowers defense application with the Dept of Education. However, on the form I selected that I did NOT want to be placed on forbearance. ( There was a choice. ) XXXX said that they could not successfully remove the forbearance because the department of Education replaces it on my account after they remove it. So I contacted the Borrowers Defense phone line and the person told me that they will remove the forbearance. However I still have it on my account. The issue here is that I am trying to continue making payments on my PSLF and I can not do this while there is a forbearance. I currently have a {$0.00} due and payments made while in forbearance does not count. I did not request one so I feel it should be removed.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 932XX
Submitted Via: Web
Date Sent: 2024-01-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-30
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: My servicer is Mohela. I registered my Federal student loan of approximately {$280000.00} under the SAVE plan prior to the first payment due in XX/XX/2023 of {$1000.00}. I enrolled in AutoDebit, entered my bank account information and saved it on Mohela 's portal, and received confirmation that the first AutoDebit would be taken on XX/XX/2023. But it was never taken, and I received no notice of this error until much later, when I was notified that a payment was late. I made a manual payment from my saved bank account, which cleared on XX/XX/2023. I called Mohela on XX/XX/2023 to inquire about this issue. By that time, interest of {$2000.00} was showing on my account. After nearly 2 hours on the phone, I was offered the following resolutions : ( 1 ) retroactive forbearance for XX/XX/2023 would be placed on my account, ( 2 ) my manual payment in XX/XX/2023 would be refunded, since it would be covered under the time period of the forbearance, ( 3 ) I would be sent a document to my email about my payment and loan history to account for the {$2000.00} interest which Mohela claims accumulated prior to XX/XX/2023, ( 4 ) my payment and auto-debit would be taken XX/XX/2023 as scheduled. None of these items have been done. I received confirmations of auto-debit from my bank account ( whose information is correct, as it was able to be used to make a manual payment ), and when I checked my account on XX/XX/2023 it even said the payment was processing. However, a delinquent notice was sent to me on XX/XX/2023, and there was no record of my XX/XX/2023 payment. Checking my account on XX/XX/2023, Mohela states that I have {$1000.00} due for next payment, {$2100.00} past due, for a total due of {$3200.00}. This does not make sense, especially as I made a manual payment that they have not refunded as promised. This entire issue has been a nightmare! The consequences of Mohela 's errors are multiple. I might lose credit for PSLF. I will have thousands of dollars in undeserved interest. And if my income is higher in the future, they will collect extra higher-income-based payments from me instead of counting the earlier ones. Larger payments than those required under the SAVE plan would not be applied to as much principal as interest. This is a complete scam, and their response time is unacceptable! There are families and lives on the line here!
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 943XX
Submitted Via: Web
Date Sent: 2023-11-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-30
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I submitted my Public Student Loan Forgiveness application to MOHELA on XX/XX/XXXX. On the website it states up to 30 calendar days for processing. I called after 21 days to check on the status and I was told it is now 30-45 calendar days for processing. I called back again today ( XX/XX/XXXX ) and was just told it is up to 45 business days for processing. Meanwhile on the website it still clearly states 30 calendar days. I am very worried about the consistency and ultimate processing of my application.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MN
Zip: 554XX
Submitted Via: Web
Date Sent: 2023-11-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-30
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: Mohela placed me in administrative forbearance without a request from me. I am on autopay, so my interest rate is 8 %. However, when Mohela put me in forbearance they jacked the interest up to 8.25 %. I called and asked for the forbearance to be removed and was told it would be. It wasn't, and I made a manual payment for XXXX. Supposedly, the forbearance was to expire on XX/XX/29 ; however, as of today my account is still in forbearance and interest is still being calculated at 8.25 %. I have sent two emails to Mohela about this but I have yet to get a response.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 14213
Submitted Via: Web
Date Sent: 2023-11-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A