Consumer complaint received 2025-04-18 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: MOHELA
State: TX

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am submitting this complaint regarding the inaccurate late payment reporting of my federal student loans serviced by MOHELA and Missouri XXXX XXXX on my credit reports, which has resulted in an unwarranted credit score drop and may jeopardize my pending real estate transaction. This issue is a direct violation of the Fair Credit Reporting Act ( FCRA ), specifically Section 607 ( b ) and Section 611, which mandate accurate reporting of information and require credit bureaus to perform a thorough investigation when consumers dispute inaccurate information My loans are reported across the credit bureaus as follows : XXXX : MOHELA XXXX XXXX MOHELA XXXX : Missouri XXXX XXXX The credit bureaus are reporting late payments for the month of XX/XX/year> despite these loans being in federal forbearance during that period. No payments were due during the forbearance, and reporting late payments during forbearance is inaccurate and violates federal law. Despite my repeated disputes with MOHELA and the credit bureaus, these inaccuracies remain uncorrected, negatively impacting my credit score by over XXXX points, which is now threatening the closing of my home purchase on XX/XX/year>. Legal Violations : The inaccurate reporting violates the following provisions under the Fair Credit Reporting Act ( FCRA ) : FCRA Section 607 ( b ) : Requires credit reporting agencies to maintain reasonable procedures to ensure the maximum possible accuracy of the information they report. The failure to reflect accurate account statuses, especially under forbearance, violates this provision. FCRA Section 611 ( a ) ( 1 ) ( A ) : Grants consumers the right to dispute inaccurate or incomplete information in their credit report. The bureaus failed to correct the errors after my initial dispute, and instead, they continued to report inaccurate late payments. FCRA Section 611 ( a ) ( 5 ) ( A ) : Requires that inaccurate or unverifiable information be deleted or corrected within 30 days of a consumer dispute. The bureaus have not met this obligation and have failed to remove or correct the inaccurate information regarding the late payments. FCRA Section 605 : Information regarding accounts in forbearance or deferment should not be reported as delinquent, in accordance with federal relief measures for student loans under the CARES Act and other COVID-19-related relief programs. The late payment reporting violates these protections. Request for Action : I respectfully request that the CFPB take the following actions : Investigate MOHELA and Missouri XXXX XXXX for violating FCRA Section 607 ( b ) and Section 611 ( a ) regarding the inaccurate reporting of my student loans, which were under federal forbearance. Ensure that the credit bureaus ( XXXX XXXX XXXX ) correct the inaccurate reporting of these loans by removing or updating the late payments as soon as possible. Require MOHELA and Missouri XXXX XXXX to provide documentation proving the accuracy of the reported delinquencies or to delete the inaccurate data. This issue is urgently impacting my ability to purchase a home. I respectfully request expedited resolution to this matter in order to avoid further financial harm. I appreciate your attention to this matter and look forward to your prompt response. Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation