Consumer complaint received 2026-03-31 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: WA

Complaint narrative:
To Whom It May Concern, Consumer Financial Protection Bureau ( CFPB ) I am writing to follow up on my previously submitted complaint against MOHELA regarding the wrongful negative credit reporting on my federal student loan account ( RE : XXXX ). Following my initial CFPB complaint, I received a response letter from MOHELA dated XX/XX/year>. In that letter, MOHELA declined my goodwill request to remove the negative credit reporting, stating that as an Information Furnisher for the U.S. Department of Education, they are obligated to report accurately and can not remove correctly reported information. I respectfully submit that MOHELA 's response is inadequate and does not address the full context and circumstances of my situation. I am requesting that the CFPB review this matter further. -- - BACKGROUND -- - I am XXXX XXXX, a resident of Shoreline, Washington, and I have lived in the United States for 30 years with a perfect payment history not a single delinquency on any account in three decades. My credit score was XXXX. I had automatic payments ( ACH ) set up with MOHELA for {$18.00} per month. Unbeknownst to me, the bank information on file became incorrect, and XXXX months of payments failed to process. Because the amount was only $ XXXX and my wife manages our household bank accounts, neither of us noticed the withdrawals were not occurring. MOHELA 's emails went to my spam/junk folder and were never seen. Phone calls from MOHELA 's toll-free numbers ( XXXX ) were automatically flagged as spam on my phone, as are virtually all such calls due to the extremely high volume of robocalls and spam calls in the United States today . -- - THE CORE ISSUE : MOHELA 'S REPORTING PRACTICE CAUSED COMPOUNDED, IRREVERSIBLE HARM -- - The most critical issue I wish the CFPB to examine is this : MOHELA did NOT report a late payment after the 1st missed payment. MOHELA did NOT report a late payment after the 2nd missed payment. MOHELA did NOT report a late payment after the 3rd missed payment. Instead, MOHELA reported FOUR months of delinquency all at once, resulting in a single XXXX drop in my XXXX XXXX from XXXX to XXXX. This practice is fundamentally unfair to consumers. Had MOHELA reported each month 's delinquency as it occurred, I would have seen a XXXX point drop on my monthly credit monitoring and would have immediately investigated and resolved the issue. By delaying and then batch-reporting four months at once, MOHELA 's own reporting practice directly denied me the opportunity to catch and correct the problem in a timely manner. This is not simply a matter of accurate reporting it is a matter of a reporting practice that foreseeably and unfairly harms consumers. -- - ACTIONS TAKEN UPON DISCOVERY -- - The moment I discovered the issue, I immediately corrected my bank information and paid the full outstanding balance in its entirety. I did not dispute the debt. I did not request additional time. I paid immediately. This clearly demonstrates that my failure to pay was never intentional and was solely the result of a technical ACH error. -- - WHAT I AM REQUESTING FROM THE CFPB -- - 1. That the CFPB formally require MOHELA to reconsider and submit a goodwill deletion request to Equifax, Experian, and TransUnion for the late payment notations on my account. 2. That the CFPB investigate MOHELA 's practice of batch-reporting multiple months of delinquency simultaneously rather than reporting each month as it occurs, as this practice denies consumers a meaningful opportunity to identify and correct payment issues. 3. That the CFPB take note that MOHELA 's response letter does not address these specific circumstances and appears to be a form letter that fails to engage with the individual facts of my case. I have spent 30 years building a trustworthy financial record in this country. A $ XXXX payment failed due to a technical issue beyond my knowledge, and I have been penalized XXXX XXXX XXXX points as a result a punishment that is grossly disproportionate and that has materially affected my financial life. I respectfully urge the CFPB to intervene on my behalf. Thank you for your time and continued assistance. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX Shoreline, WA XXXX XXXX XXXX Enclosures : - MOHELA response letter dated XX/XX/year> - Copy of original CFPB complaint ( for reference )

Company response to consumer: Untimely response