Consumer complaint received 2025-01-24 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: MOHELA
State: ID

Complaint narrative:
In the summer of XXXX, I applied for a student loan through XXXX and made a keying mistake on the loan application that resulted in an incorrect mailing address and they gave that incorrect information to Mohela. Even though the co-signer application had the correct mailing address, neither XXXX nor Mohela noticed the difference in the addresses and brought the inconsistency to our attention either via a phone call, email, or mailing to both addresses. An additional complication to the physical address issue is that the college email address I used for XXXX was changed by the University mid-semester, of which I had no knowledge and did not understand that they disabled the original email address. All of this resulted in us not receiving the billings that Mohela was sending us. Neither I nor my parents understood that we had to make payments on the loan while I was still in school, so we did not know to look for a billing, either. In my opinion, Mohela and XXXX made the mistake of making NO attempt to call any of us to correct the application error or when payment was not being received. Mohela had all XXXX phone numbers between me and the cosigners and did not make any attempt to reach us before filing a negative credit report. We have made several attempts to call both XXXX and Mohela to get help with this issue because we believe that the negative credit reporting is unwarranted. I have tried without success to appeal to both XXXX and Mohela for them to recognize the misinformation on my student loan account since they did not attempt to look at the correct information provided by the co-signer. I've asked them to rescind the poor credit report ( since we didn't even know that we had to look for a billing in the mail ). However, they feel that he made a typo mistake on his application, so even if that means I have to drop out of college for some time until I can get a loan again, that's the way it is. This was specifically said to me by a manager! Yes, these consequences are keeping me from being able to get any other student loans so that I can continue going to college. I'm just a kid who is trying to go to school, learn financial independence, and do the right thing. I'm not the kind of person that the Fair Credit Reporting Act is trying to catch. Neither I nor the co-signer purposely avoided making a loan payment and defaulted. The lack of communication for such a simple mistake seems extremely negligent on the part of XXXXMohela . Mohela management said that they cant provide negative credit reporting forgiveness without permission from XXXX as the loan originator and XXXX tells me that only Mohela can provide the negative credit reporting forgiveness. I'm just getting the runaround between these XXXX companies and in the meantime, my credit rating is not getting fixed so I can continue going to college. 

In a phone conversation with XXXX on XX/XX/XXXX, XXXX and his manager, XXXX, said that we are approved for loan forgiveness and that the loan servicer, Mohela, would be able to complete the process for that filing. He then connected us with a Mohela manager on the same phone call and said she would take care of us. That Mohela manager, XXXX, proceeded to tell us that she needed to do further research on the matter and she would get back to us, but to date, have heard nothing back. The next day, we got an email from another XXXX manager, XXXX, telling us something completely different that we couldnt get a forgiveness letter because of the Fair Credit Reporting Act, which simply is not true. We have been getting the runaround with these companies since XXXX and it's been extremely frustrating. Numerous times we've talked to XXXX and they tell us that only Mohela can help us and when we call Mohela, they tell us only XXXX can help us. Related to the negative credit report and the Fair Credit Reporting Act, the point here is that neither the primary signer nor the co-signer purposely avoided making a loan payment and defaulted.

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