Consumer complaint received 2023-11-17
Company: MOHELA
State: OH
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
I word as a XXXX XXXX and worked most of my career in XXXX XXXX XXXX. I enrolled in the Public Service Forgiveness Program, a program offered through the Education Department to have my loans dismissed after working for a non profit community health center which required yearly verifications. I met the criteria and in XXXX  but do to the COVID pandemic the dismissal of my student loans was delayed. During COVID my loans were transferred to MOHELA. I received multiple emails and letters from MOHELA stating that my loans had been forgiven and that by the end of XXXX they ( MOHELA ) would be reporting to all three credit agencies that my loans were, " PAID IN FULL. '' I have been in the process of trying to buy a new home but was told due to the amount owed on my student loans that my loan amount to purchase would be lowered until it was reported that they were paid in full. I looked at all three credit bureaus, XXXX, XXXX, and XXXX on XX/XX/XXXX and saw that MOHELA did not notify them that the accounts were paid in full. We are looking at over {$250000.00}. I filed a dispute with all three agencies. On XX/XX/XXXX I woke up to multiple emails from credit card holders and from XXXX stating that MOHELA had reported that the loans were in default and that they were paid for less than owed and my credit score which I have worked a lifetime to build dropped from Exceptional to Needs Improvement. Which is not at all the truth.XXXX  had dropped my credit score a total of XXXX points from XXXX to XXXX, completely derailing my home buying ability and some of my credit card companies froze my credit use. I immediately called MOHELA and was informed that they had not given that information to XXXX and that my loans showed paid in full. I inquired as to why this wasn't reported, as stated, to the three credit bureaus and was told by the person I was talking to they would have to transfer me to a supervisor. I waited online for an hour and then was told I would be transferred only to be sent back to beginning of the que. I hung up and called XXXX and inquired as to how they reached this decision in two days based on my dispute. Again they falsely stated that MOHELA had provided the information to them. I informed them I had just spoken to MOHELA and asked if they had read the letters I provided to them with my dispute to which they said an investigation was ongoing into my dispute. I requested that given an investigation was in process to drop the language on my credit report and restore my credit score. I even informed them that I am a Veteran and was in the process of trying to buy a home and my lender XXXX had just frozen that process. They refused to restore my credit score and several of my credit cards were frozen as a result of their mishandling of my dispute. I'm asking that you investigate their practices involving my dispute and help me recover what has taken a lifetime to build which was my exceptional credit rating.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation