Consumer complaint received 2024-09-11 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: FL

Complaint narrative:
On XX/XX/year> I submitted a loan payoff payment to Mohela in the amount of {$4000.00}, and they withdrew it on XX/XX/year>. The payment confirmation I received stated that this payment would be posted within 2-4 business days. On XX/XX/year> I contacted Mohela as the payment was not posted and they submitted a research case but said that the payment could take 30 days to post. In XX/XX/year> I contacted Mohela again as my payment was not even showing as a pending payment within my account ( all other payments do ). They submitted an escalation case on the research event that was already submitted and informed that it will be resolved by XX/XX/year>. I called today, XX/XX/year> as the payment was still not posted. The representative told me that it could take up to 90 days to post my payment since it is a 120-day cancellation payment, however this is not disclosed to borrowers. I asked for disclosures on this as well as went onto their payment information online and did not find any evidence of this. I informed the representative about this and asked to speak to the supervisor line as the last time I submitted a payoff a few months prior, I had the same problem where they did not post my payment within the timeframes that they gave me ( 2-4 days on the confirmation and then 30 business days on the phone ) and there was no mention of 90 days anywhere. After telling me she would transfer me she got back on the phone after I waited on hold and told me payments should post within 37 days. I asked to be transferred to the supervisor again as she was not resolving my problems. After speaking with the supervisor she told me 60 day and I questioned whether it was 2-4 business days, 37 days, 60 days, or 90 days as those are all the different answers I was getting and she told it was 60-90 business days. Any payments that I make for under {$1000.00} ( I pay about $ XXXX {$200.00} almost weekly ) are posted within the 2 business days from the date of the payment being made. I asked the supervisor for these disclosures she informed me that she does not believe that there are disclosures for this and that this is not in writing anywhere, but that she sees my payment was received and not posted. This payment is still not reflecting a pending within my account over a month since the payment date and I requested for proof that my payment was received as well as evidence that this 60-90 day rule is in effect. There was a 60-90 day processing period for payments that were made on the old system right before Mohela transferred to their new system for payments to be sent from the old system to the new system, however both payoff mishaps that I have had occurred while they were already using the new system, and payments were made within their online portal. The supervisor was not able to resolve my problem as she told me I need to wait til the end of the 90 days and within that time my payment should be posted. I informed her that I am concerned as to why I can see my {$200.00} payments as pending within my account but my {$4000.00} payment does not show anywhere in my payment history or within pending payments, and why the less than {$1000.00} payments are always posted within 2-4 business days but anything over {$1000.00} I have had to call multiple times ( 3 times minimum ) to get a resolution. Mohela 's business practices are awful and have gotten worse since they transferred to the new website. Their customer service representatives will just submit research cases and provide you any answers to your problems, and this is my second time for this payment problem that I have spoken to a supervisor and received no resolution by the end of my call other than being told to wait. Mohela does not provide disclosures to lenders regarding how their payments will be posted, and you get a different answer from each representative that you speak with regarding how long it will take to process your payment. When asked how to avoid this going forward, no answer or resolution could be provided.

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