Consumer complaint received 2025-05-27 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: IN

Complaint narrative:
XX/XX/XXXX : Mohela buys/takes over XXXX ( my loan service provider ), I had autopay setup since XX/XX/XXXX and was saving XXXX percent on the loan interest rate. I have not missed a payment in this time. I have not changed anything about this autopay since XXXX of XXXX. 

XX/XX/XXXX : This is the first month that XXXX is a part of Mohela and is also the first month that payments from Autopay started to have issues. 

XXXX XXXX XXXX : Contact Mohela and XXXX about issues. Was given reasons that stated I wasn't going to be charged interest, late fees or have credit issues and that it was an internal issue with credit unions that they were working on. I made a over the phone payment to make the account current while they resolved issues XXXX XXXX XXXX : Issues with Autopay or my ability to setup my online autopay still exist. I made manual payments each month, each of which was reversed b/c of the system. They said it was my banks fault this time. I contacted the bank and they stated that the reversals keep happing b/c Mohela is not providing the correct information. 

XX/XX/XXXX : I contact Mohela again, make an OVER THE PHONE payment to cover payments through XX/XX/XXXX to buy time for Mohela to again fix there system. They admitted via phone that they black listed the account and that is why it wasn't going through. I have already provided Mohela with the required information at this time. They also admitted to mistakenly sending me to the credit bureau for non payment on my loans. They stated that they were reversing this and that it was a mistake in the automated systems they have. 

XXXX XXXX : Added and setup the autopay online and waited for the XX/XX/XXXX payment to come out. Notified Mohela that they need to update my interest rate and repay any interest incurred. Required an Amortization schedule, all official statements, fees, late fees and interested charges be mailed to my house for evaluation by a third party accounting firm. HAVE NOT RECEIVED THE DOCUMENTS TO DATE. 

XX/XX/XXXX : Made a one time payment manually on XX/XX/XXXX b/c the scheduled payment on XX/XX/XXXX from the autopay never was released. On XX/XX/XXXX the payment was reversed and my bank account was again deleted from the online system. I received a notification that my loan payment is not increased to {$650.00} per month ( {$56.00} increase ) via email notification of NEW documents in my online XXXX account. Contact Mohela XX/XX/XXXX and waiting for a call back from Mohela. 

I have over XXXX hours of my time working with them on the phone, checking with my bank, recreating accounting paper work to ensure what they are sending is correct, including an amortization schedule and and interest incurred on the account beyond what was agreed upon based on the terms of my loan. I have receive XXXX credit of approximately {$8.00} which I haven't been able to verify where it came from in the first place b/c they have not sent me all my requested paper work. 

There is not checks and balances to there process and they automate everything. They have lied to my face or don't have people capable of providing answers to my situation. They want you to stop fighting so that you wipe it under the rug and blame my bank who hasn't had any issues until MOHELA got involved. I shouldn't have to be my own advocate against a company with multiple class actions law suites already and a long standing history of disregarding to best accounting and loan manage practices. 

Here is a list of items they are known for already and now you can add to it my list of issues above. 

- Illegally deducted payments from borrowers bank accounts without borrowers consent. 
- Failed to send millions of borrowers bills on time, leading XXXX borrowers to fall behind. 
- Sent borrowers inaccurate bills, causing borrowers to pay more on their monthly student loan bills. 
- Misinformed borrowers about key paperwork deadlines to remain in affordable repayment plansforcing borrowers to pay more. 
- Failed to timely process borrowers applications seeking loan relief or a more affordable payment plan, and failed to investigate, address, and correct errors raised in complaints from borrowers. 
- Failed to correctly track public service workers progress towards PSLF, pushing relief further out of reach for eligible borrowers.

- Misled public service workers on their right to get credit towards PSLF cancellation when consolidating their loans.

- Inaccurately processed PSLF employment certification forms and denied eligible public service workers relief. 
- Failed to process refunds, accurately track and report borrowers payments, and manage borrower records. 
- Misinformed borrowers about their options for more affordable payments and time-limit

Company response to consumer: Closed with explanation