Consumer complaint received 2023-12-05
Company: MOHELA
State: TX
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
Dear CFPB, I am writing to file a formal complaint against MOHELA, my student loan servicer, for significant and concerning issues with my account that have had severe repercussions on my financial situation, particularly during a crucial time in my lifepurchasing a home. 

On XX/XX/2023, I made a payment on my student loan account ( account ending in XXXX ) as part of the resumed student loan payments. Subsequently, due to a holiday oversight, I allowed a payment to slip by a few days. Upon realizing this, I promptly made the payment, only to discover several irregularities in my MOHELA account. 

Late Fee and Pending Payments : a. A late fee was assessed, as expected, but the payment was still listed as pending, and the upcoming XXXX payment was added to the past-due balance. 
b. Since the other payment was pending, I thought it would be a good idea to go ahead and make the XXXX payment early. However, when attempting to make the XXXX payment, I noticed that all account information was deleted. This is when I realized that the XXXX payment was showing as coming from an entirely different account, ending in XXXX, which was not the account the payment should have come from, nor was it the account the XX/XX/XXXX payment came from. 

Unauthorized Modification of Account Information : a. Without any notification, my account information, including the linked bank account, was modified. 
b. The account information changed without my authorization, violating the law requiring immediate notification of any unauthorized changes to my account. 
Lack of Notification : a. MOHELA failed to provide any notification regarding the change in account information, a violation of legal requirements. 

Inability to Reach MOHELA for Resolution : a. Despite numerous attempts, I have been unable to reach MOHELA representatives to resolve this issue over nearly three hours on XX/XX/2023. 

Impact on Credit and Home Purchase : a. The erroneous delinquency status MOHELA has placed on my account poses a significant threat to my ability to complete the home purchase process. Mohela has failed to reach out to me to advise me of any issues on my account, and when speaking to them to resolve any issues on my account, they have provided unsatisfactory customer service, and seem to deliberately evade allowing me to speak to someone with the proper level of authority to identify what is happening with my account. This gross negligence could jeopardize my home buying process, by showing the account balance as higher than it should be when I sign my closing documentation. 

I am seeking your assistance in holding MOHELA accountable for these actions, rectifying the unauthorized changes to my account information, and ensuring that I am protected against any retaliatory actions, such as reporting inaccurate information to credit bureaus. 

I have attached relevant documentation, including proof of payments, bank statements, and any communications with MOHELA. 

Thank you for your prompt attention to this matter. I look forward to a swift resolution to prevent further harm to my financial standing.

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