Consumer complaint received 2024-12-26 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: AL

Complaint narrative:
I am filing this complaint to address multiple issues with XXXX handling of my student loan account, including unprocessed payments, fraudulent charges, unauthorized administrative forbearance, and refusal to close my paid-off loans. Despite my repeated attempts to resolve these matters directly with Mohela, the companys actions have left me with no choice but to escalate this issue to the CFPB. 

Key Issues : XXXX. Unprocessed Payments : On XX/XX/year>, I made a full payment to pay off one of my loans. The payment was marked as received, but Mohela did not apply it to the loan for over a month. On XX/XX/year>, I made another full payment to pay off a different loan ( XXXX XXXX XXXX XXXX, {$2900.00} ). Over a month later, the payment remains unprocessed, and the loan is not marked as paid in full. 

XXXX. Fraudulent Charges : On XX/XX/year>, I noticed an additional {$19.00} charge added to the loan I paid off on XX/XX/year>. This appears to be interest or other unauthorized charges for a loan that should have been closed. I have attached an account summary from XX/XX/year>, while the loans were still in forbearance, proving that I owed {$2900.00} on loan XXXX. I paid {$2900.00} XXXX months later, while no interest had accrued. If anything, Mohela owes me the {$0.00} I overpaid, but instead, they are fraudulently trying to charge me an additional {$19.00}. 

XXXX. Unauthorized Forbearance : Mohela repeatedly places my account into administrative forbearance without my consent, despite my explicit written requests for this not to happen. This action delays my ability to pay off my loans and prevents payments from being processed promptly. 

XXXX. Failure to Communicate or Resolve Issues : Despite sending multiple written inquiries ( dated XX/XX/year>, XX/XX/year>, XX/XX/year>, and XX/XX/year> ), Mohela has failed to adequately address my concerns or resolve the issues. 

Detailed XXXX : - XX/XX/year> : Payment made to fully pay off a loan. XXXX marked as received but not applied for over a month. 

- XX/XX/year> : Emailed Mohela to inquire about the delay. Received no resolution. 

- XX/XX/year> : Followed up, requesting immediate removal of forbearance and processing of the payment. 

- XX/XX/year> : Attached account summary shows loan XXXX had a balance of {$2900.00} while still in forbearance, with no additional charges or accrued interest. 

- XX/XX/year> : Made another full payment ( {$2900.00} ) to pay off loan XXXX. XXXX marked as received but remains unprocessed over a month later. 

- XX/XX/year> : Sent another inquiry about the unprocessed payment. Suggested placing a hold on the withdrawal due to the prolonged delay. 

- XX/XX/year> : Discovered fraudulent {$19.00} charge on a paid-off loan and reiterated prior requests to process payments and remove forbearance. 

Questions for Mohela : XXXX. Why are payments marked as received not processed within the promised XXXX business days? 
XXXX. Why are fraudulent charges, including unauthorized interest, being added to fully paid-off loans? 
XXXX. Why does Mohela continue to place my account into administrative forbearance against my explicit instructions? 
XXXX. Where is the money that I overpaid on the loan, and why are you attempting to charge me additional money for a loan that has been overpaid?

Mohelas failure to process payments, close paid-off loans, and honor my instructions demonstrates a pattern of behavior that is unethical and possibly illegal. I request the CFPBs assistance in resolving these issues and holding Mohela accountable for their actions.

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