Consumer complaint received 2026-03-02 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: CA

Complaint narrative:
Please reference cases made on this account, mainly the first XXXX ( case # XXXX ) as it details the issue Ive been having with the loaner. I am writing to formally document and escalate an ongoing issue with my loan account that has persisted for over XXXX months despite repeated attempts to resolve it on my part. In summary, I have consistently attempted to make timely payments on my loan account. However, the servicer has repeatedly rejected these payments, claiming that my bank account information is invalid, even though I have verified the details multiple times directly with my financial institution and re-entered the information as instructed. On several occasions, I have made manual payments, which the servicer has accepted only to subsequently issue a reimbursement of the full amount back to me without any clear explanation or resolution of the underlying issue. As a result, my payments have not been properly credited toward the loan balance, leading to continued delinquency reporting. Additionally, I have enrolled in auto-payment on multiple occasions to ensure reliable and timely payments. Despite successful initial setup, the auto-payment arrangement has been unilaterally canceled by the servicer shortly after the due date each time, again citing an invalid bank accounteven though no changes have been made to my banking information and my bank confirms that the account remains active and valid. These recurring failures have directly resulted in negative consequences to my credit profile, including derogatory marks, late payment notations, and a measurable decline in my credit score. I remain current in my intent and ability to pay, yet the servicer 's processing errors have prevented proper application of funds and have caused unnecessary harm to my credit standing. To support this complaint, I have attached the following documentation for your review : - A detailed payment history showing attempted payments, acceptances, and subsequent returns. Despite opening multiple support cases over the past XXXX months, I have received no meaningful resolution or substantive update on the status of these inquiries. I am now at a loss as to how to correct this persistent error and restore proper functionality to my account. I respectfully request the following immediate actions : XXXX. A thorough investigation into why my verified bank account information is being repeatedly rejected as invalid. XXXX. Permanent correction of the payment processing issue to allow successful application of funds ( manual and/or auto-pay ). XXXX. Removal or suppression of all inaccurate late payment or delinquency reporting resulting from these processing failures, including updates to all three major credit bureaus ( XXXX XXXX, and XXXX ). XXXX. A written explanation of the root cause of these issues and confirmation of steps taken to prevent recurrence. XXXX. Reimbursement of any fees, interest, or other charges assessed due to the reported delinquencies that were caused by the servicer 's errors. XXXX. A timeline for resolution and regular status updates until the matter is fully closed. I expect a prompt response within XXXX days and am prepared to escalate this matter to my state attorney general, or other relevant regulatory authorities if a satisfactory resolution is not achieved.

Company response to consumer: Untimely response