Consumer complaint received 2025-09-23 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Need information about your loan balance or loan terms
Company: MOHELA
State: DE

Complaint narrative:
I. Nature of Complaint I am submitting this urgent complaint regarding systemic violations of federal regulations by both Mohela and the U.S. Department of Education, which have resulted in severe and ongoing harm to my financial situation and personal well-being. Despite my previous complaint ( ID XXXX ), submitted on XX/XX/year>, Mohela has failed to respond within the mandated timeframe established by the CFPB. I urgently require CFPB intervention to rectify these injustices and mitigate the profound consequences that have arisen from their unlawful practices. Both entities have a shared responsibility to uphold the principles of consumer protection, and both should face accountability for their actions. 

XXXX. Summary of Hardship I am a XXXX parent with an XXXX son, currently living in a hotel due to the financial strain caused by Mohelas actions compounded by the Department of Education 's inaction .

My income of {$960.00} per month is dramatically insufficient to meet my living expenses, particularly with hotel rates exceeding {$1100.00} biweekly.

The derogatory marks placed on my credit report by Mohela directly prevent me from obtaining necessary funding and housing stability. This ongoing predicament has led to severe emotional distress and places me and my child at risk of eviction. 

Without immediate action to rectify these inaccuracies and remove the damaging entries, I face the very real possibility of homelessness. 

XXXX. Statement of Facts Failure to Respond and Continued Misreporting Mohela ignored the CFPBs established response timeframe for Complaint ID XXXX and continued to furnish materially inconsistent and derogatory information on the same account ( XXXX XXXX XXXX XXXX 

My 3-Bureau Credit Report dated XX/XX/year>, evidences contradictory reporting : XXXX  : Over 120 days past due balance {$2100.00} Experian : Pays as agreed balance {$1200.00} TransUnion : Delinquent / Closed by consumer balance {$1200.00} Statutory Violations Identified FCRA 1681s-2 ( a ) ( 1 ) ( A ) / 623 ( a ) ( 1 ) ( A ) knowingly furnishing inaccurate information.

FCRA 1681e ( b ) duty to ensure maximum possible accuracy.

FCRA 1681s-2 ( b ) / 623 ( b ) duty to conduct a reasonable investigation upon notice.

12 C.F.R. 1022.43 ( e ) ( 1 ) ( Regulation V ) reinvestigation requirements before reporting.

Continuing to furnish derogatory data during dispute in violation of 623 ( a ) ( 2 ). 

Supporting case law XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

Unjust XXXX and Fraudulent Billing Mohela financially benefitted from securitization that extinguished my personal obligation once the receivables were transferred into a trust and sold to investors. Despite having already received consideration from that sale, Mohela continues to : Bill and collect as though it were the creditor and owner of the receivable, when in fact it sold and derecognized the receivable.

Represent itself as principal/creditor rather than a limited servicer, which under accounting and securitization law can only collect on behalf of the trust or true Holder in Due Course. 

Assert standing and ownership rights inconsistent with GAAP, specifically XXXX XXXXXXXX XXXX XXXX XXXX, Transfers and Servicing ).

Applicable FAS 140 / Derecognition Principles Once receivables are sold, the transferor can not continue to report or treat them as assets ( 16 ).

Servicing rights ownership ; a servicer acts only for the trust.

Repurchase is possible only for breach of representations.

Consideration received = extinguishment of beneficial ownership.

Sale standards under 9 ( ac ) : no repurchase rights, transferee must have unrestricted control, and assets placed beyond reach of transferor.

Mohelas continued collection and reporting constitutes unjust enrichment and fraud, amounting to double recovery and misrepresentation of creditor status.

Deceptive Practices ( FDCPA / UDAAP ) Mohelas continued billing and furnishing of student loan obligations after selling them into securitization pools constitutes false representation of creditor status under FDCPA ( 15 U.S.C. 1692e, 1692f ) and violates UDAAP standards.

IV. Immediate Remedial Actions Requested Immediate Credit Relief : remove all derogatory information and update accounts as Paid as Agreed / Closed in Good Standing.

Cease & Desist of Unlawful Activity : halt collection on securitized loans, confirm lack of standing.

Financial Transparency : GAAP-compliant accounting and disclosure of transfers and contracts.

Regulatory Enforcement : CFPB enforcement for failure to respond to prior complaint ; referral to SEC, FTC, DOJ.

Monetary Restitution & Damages : statutory and actual damages, emotional distress, punitive damages.

Equitable Relief : declaratory judgment that securitized instruments are unenforceable ; injunction against further collection without proof of true ownership.

V. Legal Basis for Compensation Mohelas conduct demonstrates willful violations of the FCRA, FDCPA, and GAAP. Specifically : Continuing to report after receiving sale proceeds violates XXXX XXXX XXXX XXXX XXXX derecognition standards.

Collecting without ownership constitutes unjust enrichment and fraudulent billing.

VI. Damages & Exposure Calculations Statutory, actual, and punitive damages are calculated at a minimum exposure of {$120000.00}, exclusive of interest and ongoing harm.

VII. Harm & Impact Significant credit score reduction.

Denials of credit, housing, insurance.

Emotional distress for me and my child. 

XXXX. Additional Compensatory Demands : Double Enforcement and Unauthorized Use To ensure clarity of issues and to prevent denial of relief based on omission, I specifically demand the following : Compensation for Unauthorized Use of Notes or Securities I demand {$500000.00} XXXX  in compensation for Mohelas unauthorized assignment, placement, and use of my notes or securities without my written consent or acknowledgment, and without proper compensation. This includes pain and suffering, reputational harm, and damage to my creditworthiness and pursuit of happiness. 

Enforcement of Rights under the XXXX  Pursuant to XXXX XXXX through XXXX, I invoke my real defenses of fraud in the factum, material alteration, and wrongful acquisition of notes. I define stolen as Mohela or related entities acquiring promissory notes without paying value, violating both XXXX XXXX and GAAPs matching principle. Title can not pass without consideration.

Adequate Assurance of Due Performance I demand return of my original applications and promissory notes for inspection, including access to stamps, endorsements, and post-execution alterations, to ensure authenticity and lawful handling.

XXXX. Demand for Urgent Response All actions must be completed and confirmed in writing within 15 days. Failure to comply will constitute willful noncompliance under the FCRA and grounds for enforcement escalation. and VERIFIED PETITION FOR EQUITABLE ACCOUNTING, DECLARATORY RELIEF, AND CONSTRUCTIVE TRUST in the Delaware XXXX XXXX XXXX for XXXX, Unjust Enrichment, and Constructive Trust for The-consumer has a right to know : What exactly is the credit instrument being created? 
What is money in this transaction? 
What is equivalent to money here? 
What is the asset being transferred? 
What is the actual funding source? 
Who is intended to be paid back under the law? 
What risk is actually assumed by the Respondent? 
Were the GAAP Matching Principles Applied? 

XXXX Supporting Documentation ( As listed : credit reports, hotel receipts, eviction evidence, CFPB complaint confirmation, indenture/securitization disclosures, etc. )

Company response to consumer: Untimely response