Consumer complaint received 2023-11-06
Company: MOHELA
State: LA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
XX/XX/XXXX, I received an email from MOHELA on preparing for student loan payments to start in XXXX. The email specifically stated the following : " MOHELA will send your first bill, with your payment amount and due date, at least 21 days before your due date. '' On XX/XX/XXXX I logged into my MOHELA account, updated my address and other personal information and seen that my payments would start back on XX/XX/XXXX, and enrolled in auto debit for payment. Well within the 21 day notice they sent. 

XX/XX/XXXX I received a notice from MOHELA stating my auto debit was approved for auto payment and I didn't think anything of it since I had set-up the auto debit it was fine. 

However, my payment came out of my bank account on XX/XX/XXXX not XX/XX/XXXX as posted online. 

XX/XX/XXXX when I noticed the loan amount was debited I began trying to contact MOHELA, with waiting times of up to XXXX, I still waited. I explained that I was expected to be debited, I did actively enroll but the terms of my due date had changed somewhere between XX/XX/XXXX and XX/XX/XXXX because I was debited much earlier than expected. 

The representative was very nice, apologized and said " we just need to request a new due date for you ''. I requested the XXXX of each month, she said that would be fine. I asked if I would need to pay again on XX/XX/XXXX to align to the new due date request or if my next payment would be due XX/XX/XXXX. She said it would be due XX/XX/XXXX. 

On XX/XX/XXXX I received another auto debit withdrawal confirmation, and checked on my account that it was coming out on XX/XX/XXXX so I stopped the auto debit because I can not pay on the XXXX, I can pay on the XXXX. 

XX/XX/XXXX - Finally, received the Student Loan Billing Statement was promised in writing ( 21 days before due date ) in the XX/XX/XXXX email. 

XX/XX/XXXX - Multiple days I have reached out about this and finally got a call back today. 

Representative told me that she could request it but it takes a couple of months for the change to go through and the rep before her should have told me about it. Also said that my account would continue to be in the debt collection state until the system completes the due date request change since I turned my auto debit off for the XX/XX/XXXX payment and told her I will pay it on XX/XX/XXXX. 

I have been proactive about this, planned for it, set up for auto pay online. Checked multiple times for a billing statement, based on MOHELA XXXX, never received as promised but finally received on XX/XX/XXXX, ( 11 days AFTER first payment posted ) so essentially debited before I even received a bill, and now my account is in collection status because I didn't pay my XX/XX/XXXX payment? 1 Month after requesting a new due date? Which apparently also disappeared out of their system, along with my new address and everything else. 

Most ridiculous issue I have ever had with a loan servicer. I will pay on the XXXX of each month and I better not receive one single phone call or email about being past due when this could have easily been avoided if the billing statement came before the first payment. My loans have been passed around at least XXXX or 6 times and this is the absolute worst.

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