Consumer complaint received 2025-07-14 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: MOHELA
State: TX

Complaint narrative:
SUBJECT : Continuing Violations of FCRA, FERPA, and Title IV Improper Dispute Handling, Servicer Misconduct, and Failure to Comply with Federal Reporting Obligations 1. Background and Previous Complaints Filed This complaint is a formal follow-up and escalation to several prior complaints filed with the CFPB : CFPB Complaint ID XXXX ( re : MOHELA & FERPA/Title IV violations filed XX/XX/XXXX ) CFPB Complaint ID XXXX ( re : Navient servicing misconduct filed XX/XX/XXXX ) XXXX  dispute for tradelines related to XXXX  XXXX and Federal Student Loan accounts ( unresolved ) These complaints were closed with explanation, yet no meaningful investigation was conducted, no full validation documents were provided, and the errors and unauthorized reporting continue to appear on my credit report. 

2. Legal Violations & Outstanding Compliance Failures A. XXXX  FCRA Violations Violation of 15 U.S.C. 1681i ( a ) ( 1 ) ( A ) Failure to Reinvestigate XXXX  verified my disputes ( XXXX  XXXX and student loan ) without providing any of the following : XXXX records Documentation from the data furnisher Description of the reinvestigation process or its outcome XXXX  relies solely on automated systems ( e.g., e-OSCAR ), which courts have ruled insufficient for satisfying the statutory duty to perform a reasonable reinvestigation. See XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX 

Violation of 15 U.S.C. 1681i ( a ) ( 6 ) Failure to Notify Within 5 Business Days XXXX  did not provide a written summary of the reinvestigation results, the method used, or an updated consumer report within XXXX business days of concluding their reinvestigation in clear violation of this provision. 

Violation of 15 U.S.C. 1681e ( b ) Reporting Inaccurate or Incomplete Information XXXX  continues to report : Inaccurate charge-off dates Erroneous payment history Disputed status not clearly indicated This is contrary to the standard of maximum possible accuracy required by the FCRA.

B. MOHELA Loan Servicer Violations MOHELA continues to violate both FERPA and Title IV obligations by : Disclosing private educational and financial aid information without proper written authorization ; Failing to provide full records under the Privacy Act of 1974 ; Not responding with complete payment histories, loan origination records, or servicing communication logs I requested via dispute and CFPB complaint ; Refusing to acknowledge legal accountability despite the clear allegations in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

They also refused arbitration, as required under the Higher Education Act and contract agreements, and never processed my formal request to cease collections and validate the debt fully.

Violation of 12 CFR 1022.43 ( FCRA implementing regulation ) They failed to provide a timely and complete debt validation response to my written dispute. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX knowledge of servicing violations, they : Failed to provide full records before transferring my loans to MOHELA ; Did not correct or update my credit file with accurate account status or balances ; Provided no notification of rights, account closure procedures, or transition documentation ; Reported inaccurate loan statuses post-transfer ( delinquent/charged-off ). 

Their closed with explanation response was a deflection that ignored their responsibility to correct prior errors that have caused ongoing harm. 

XXXX Failure to Cease Collection Efforts During Disputes I have clearly instructed both the debt servicer and furnishers not to communicate or pursue collection during the dispute period under : 15 U.S.C. 1692g ( b ) ( FDCPA : Cease collection until verification ) 15 U.S.C. 1681i ( a ) ( 1 ) ( FCRA : Cease reporting unverifiable items ) 15 U.S.C. 1681b ( f ) ( Unauthorized access/use of credit report ) Despite this, collection notices and credit report updates continued, violating both the FDCPA and FCRA. 

Summary of Demands I request the CFPB immediately enforce and investigate the following : XXXX  Provide all ACDV records and reinvestigation documentation under 15 U.S.C. 1681i ( a ) ( 7 ) Remove unverifiable accounts from my report Mark disputed accounts appropriately under 1681i ( c ) MOHELA Cease any collection activities immediately Provide debt validation documentation ( including full payment history, original promissory notes, and communications ) Comply with FERPA, Title IV, and Privacy Act information disclosure requirements Navient Provide accurate reporting corrections Cooperate with MOHELA to release all original account servicing history Cease referencing inaccurate statuses on any consumer credit profile Redress Full deletion of tradelines and associated damages ( statutory and actual ) due to verified reporting violations Enforcement penalties for failing to comply with federal law Closing Statement My rights under FCRA, FDCPA, FERPA, and Title IV have been repeatedly violated by these institutions. These agencies failed to take meaningful corrective action even after CFPB involvement. 

I am requesting a formal escalation and supervisory review of these failures, with the goal of : Corrective action ; Legal accountability ; Consumer redress ; Prevention of further abuse.

Company response to consumer: Closed with explanation