Consumer complaint received 2018-06-26
Company: MOHELA
State: FL
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
I was originally offered a deferment forbearance to be effective XX/XX/XXXX through XX/XX/XXXX. I was initially advised that there wouldn't be any negative remarks on my credit report from this. After checking my report I noticed I have 7 late payments in a row on both my accts with MOHELA from XX/XX/XXXX through XX/XX/XXXX. I figured out that this was NOT an error on my behalf but this was indeed an error by MOHELA. The reason I know that this was not an error by me is because my other student loans processed and approved the forbearance deferments and my credit report reflects accordingly. In an attempt to solve the problem I wrote mohela a " goodwill '' letter which it was immediately denied. At which point I spoke with a supervisor and the supervisor looked into the situation and advised me that the matter would be addressed and corrected immediately and my credit report would remove those 7 payments on both of my mohela accounts. Well there has since been no changes to my report. I have al also sent mohela another letter, and I have yet to receive a response back from yet. I was misled twice now by mohela in regards to this minor issue that is very simple to rectify. This is the letter I wrote mohela. 

This correspondence is in response to the letter I received regarding my goodwill request to have late payments removed from my credit score report. In the letter I was told that such reports could not be removed due to regulations promulgated by the DOE and the FCRA. Contrary to these assertions, by failing to update previously reported information, MOHELA is in violation of Section 623 ( a ) ( 2 ) of the FCRA. 

I have attached an FTC advisory opinion which interprets Section 623 ( a ) ( 2 ) of the FCRA. The issue posed in the advisory opinion is how a lender is to handle a situation when subsequent information updates a report that was allegedly accurate when it was made but no longer is accurate in the present time ( i.e., the identical situation I am currently in ). 

The advisory opinion states that the Section 623 ( a ) ( 2 ) of the FCRA addresses the duty to correct and update information by furnishers, or persons who furnish information to consumer reporting agencies ( CRA ) such as credit bureaus. In particular, this section requires a person that has furnished to a consumer reporting agency information that the person determines is not complete or accurate to promptly notify the consumer reporting agency of that determination and provide any information needed to make it complete and accurate. Thus, on its face, this provision requires a furnisher to provide corrected or updated information to the consumer reporting agency that it had reported to originally. This duty extends to all student loan accounts reported to CRAs, regardless of whether they were accurate at one point, because the section requires the furnisher both to update accounts as well as to correct. 

MOHELA representatives told me that because the delinquent payments were accurately reported in XXXX through XXXX of XXXX that any subsequently initiated deferments would not allow for MOHELA to update reports to CRAs to show that the payments were not late and actually in deferment. However, Section 623 ( a ) ( 2 ) clearly shows that the reports must be updated/corrected regardless of whether they were accurate at one point. * All of my MOHELA accounts that were part of the late payments show deferment status. Therefore, my credit reports do not currently accurately reflect previous payment statuses with MOHELA, both as they actually existed and as MOHELA has recorded them. I am thus requesting that in compliance with Section 623 ( a ) ( 2 ) of the FCRA that the TWO accounts showing late payments from XX/XX/XXXX THROUGH XX/XX/XXXX be updated and/or corrected and removed. 

In the event that these reports are not immediately updated to accurately reflect my payment status, as I was in a forbearance deferment I intend on filing disputes with each credit bureau in addition to official complaints with the FTC, CFPB, BBB, and pursue other legal routes if necessary. 

Please respond within 15 days of the date of this letter with an update to this matter. 
Thank you That's the latest letter that I sent to MOHELA I even quoted statues that they are currently not obiding by for my situation. Also I was even advised by a supervisor at mohela that this would be corrected immediately. 
As of now my credit report still reflects the 7 late payments per account. I have 2 Mohela accts. Grand total of 14 late payments. This is a very easy resolution. And I would be even willing to settle for neutral remarks during that time frame, which would still eliminate the negative remarks. I hope and pray this matter gets resolved In a timely fashion. As I'm trying to raise a XXXX year old girl by myself which is the reason I initially had to get a forbearance because her mother passed away in a tragic accident just prior to my forbearance request. 
Thank you very much for hearing me and thank you for your time and helping me with this matter.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation