Consumer complaint received 2023-10-12
Company: MOHELA
State: TN
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:
I have contacted my loan servicer, XXXX, four times regarding a billing error and they have refused to correct it or offer any assistance. 

I am new to Mohela. I was transferred from XXXX last month. 

For years, I was on the XXXX plan with XXXX and never had any problems. My monthly payment was {$58.00}. I received my final statement from XXXX confirming this amount on XX/XX/XXXX with a due date of XX/XX/XXXX. My account with them was on autopay and had been for many years. Prior to my due date, I also verified that I was not due for recertification until XX/XX/XXXX per both XXXX and XXXX. 

On XX/XX/XXXX I received an email from Mohela saying my loans had been transferred to Mohela. That email stated the following " This change in servicer will not impact the existing terms, conditions, interest rate or available repayment plans of your federal student loans. Your full account details should be available no later than 10 business days after the loan transfer date included in the transfer notification sent from your other loan servicer. '' I never received any statement or mailed correspondence from Mohela notifying me of the amount due prior to my due date. 

On XX/XX/XXXX I was notified by my bank that my checking account was overdrawn. My autopay information had been transferred from XXXX to Mohela, but instead of deducting the {$58.00} owed, Mohela deducted {$1100.00}. I incurred two overdraft fees due to their error. 

On XX/XX/XXXX, I called Mohela several times and waited on hold for hours. When I finally reached someone that evening, the representative told me she would look into it. She placed me on hold multiple times and eventually came back saying she could " see no reason '' that my payment amount was changed. She also couldn't figure out how to reinstate my old XXXX plan without a new application and certification. She said she would refund the {$1100.00} to my checking account and that I would need to apply for a new repayment plan. 

I finally received my first statement from Mohela on XX/XX/XXXX, showing a payment due of {$1100.00}, due on XXXX. I still have not received an XXXX statement explaining the change in loan terms. 

As of XX/XX/XXXX, it has been an entire week since I was told my payment would be refunded and I still have not received my refund. I called again this morning to look into it and the new representative stated she could not see any refund pending for me and kept placing me on hold. She also could not tell me why my payment amount changed. I was at work and had to end the call. I called back during my lunch break and waited XXXX minutes to speak to someone. That person informed me refunds take 60 days. She would do nothing to put me back on the payment plan I was already on and told me I owe {$1100.00} on XXXX. She told me she could put my account in deferment, but that no months during that time would count toward XXXX. When I asked what my alternative was she placed me on hold and she then disconnected the call.

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