Consumer complaint received 2019-07-11
Company: MOHELA
State: TX
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
To Whom It May Concern, I am reaching out to you because Ive reached an impasse regarding a situation with my student loan servicer. I have always made my payments on time. I have never been delinquent. My husband and I are XXXX XXXX XXXX in XXXX, Texas so money has never been an issue. We take care of our responsibilities. 


The Issue : My husband and I switched banks and I updated my banking information via the MOHELA website on XX/XX/XXXX. I processed automatic debits at that time. The system notifies you that it takes a few business days for payments to appear on the account. The payment, {$1700.00}, was deducted from my checking account on XX/XX/XXXX. 

On XX/XX/XXXX - I checked my MOHELA account and noticed there was an additional payment processing that I had not approved in addition to the regular monthly payment I had already paid. I called customer service and the agent said it was a technical issue, and not to worry. He then removed the processing payment. 

On XX/XX/XXXX - I received an email stating XXXX MOHELA had not yet received my monthly payment and my account was delinquent. I want to repeat, the money was deducted from my account on XX/XX/XXXX. 

On XX/XX/XXXX - I spoke to a representative, XXXX, that stated the reason why my account was delinquent was because I called and cancelled the second processing payment. Remember, this was an unauthorized payment made in addition to my regular direct deposit. When I called previously to cancel the second unauthorized processing transaction the previous representative had canceled my initial payment in addition to the processing payment supposedly. 

According to XXXX MOHELA had sent me a refund on XX/XX/XXXX in the mail for that payment in the amount of {$1700.00} and stated I would receive it in the mail on XX/XX/XXXX at the latest. He stated my account was still past due and because no payment had been given, my account was past due and he advised me to pay all accrued interest as well as a {$50.00} late payment fee as soon as possible. I made a payment of {$1700.00} which was deducted from my account on XX/XX/XXXX. 

My account STILL shows as delinquent after that payment. 

On XX/XX/XXXX No refund was received from the first payment. I have now paid a total of {$3400.00} and my account balance has not changed. This is without taking into account the added interest and fees. 

I recorded the last conversation I had with XXXX, and that is available upon request. 


The Resolution : The payment of XXXX was debited from my account on XX/XX/XXXX. I expect the second payment of {$1700.00} to be refunded to me, and all interest and fees that accumulated and compounded as a result of Mohelas error to be eliminated. 

I dont see how a company can debit someone with a confirmed transaction record : XX/XX/XXXX : Withdrawal MOHELA / TYPE : 1-TIME PAY ID : XXXX DATA : XXXX CO : MOHELA % % ACH ECC WEB % % ACH Trace XXXX and claim I didnt pay my student loan payment on time. Then charge me a fee and delinquent interest due to a supposed cancellation of that payment which I did not request. 

I called and cancelled a second processing payment which I did not authorize on the account after the initial debit was completed. When I decided to play their game and pay the increased payment : XX/XX/XXXX : Withdrawal MOHELA / TYPE : 1-TIME PAY ID : XXXX DATA : XXXX CO : MOHELA % % ACH ECC WEB % % ACH Trace XXXX They did not refund me the initial payment in the time frame I was told via phone ( which I recorded ) and my account is still delinquent. 

I have effectively paid over double my normal loan payment and have not been credited for any of my payments on their system despite having the money withdrawn from my account. 

Thanks, XXXX XXXX

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