Consumer complaint received 2025-01-31 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: IL

Complaint narrative:
All of the below issues occurred with the same loan service provider, Mohela. 

On XX/XX/XXXX, due to a personal miscommunication, both my spouse and I made a pay in full payment to the provider to pay off my student loans, in the amount of {$9300.00} ( due to the duplicative payment, the initial total submitted was {$18000.00} ). When we realized the error ( our bank flagged what would have been an overdraft ), I contact the provider to ask them to stop the payment on XX/XX/XXXX. I was informed that the payments were already processing on their end, so the only solution was to contact my bank and stop the payment, which I then did. Because it was a duplicative payment to the same vendor, the stopping of one would trigger ( according to the bank ) the stopping of both. I said ok and asked them to stop the payment. 

Here begins the source of the issue and the complaint. 

I waited for a few business days to allow the provider 's system to process the payment, the cancellation, and update my account so I could make payments. I then called on XX/XX/XXXX to ask for an update on when the status would clear. I was told to wait until the account was reconciled, as that could take XXXX business days. I then called back on XX/XX/XXXX for an update, at which point I was given the same general advice. 

At this point, rather than showing that the account had not been paid, it was appearing on my account that I had not only not paid the amount, but I had overpaid by double the amount. I proceeded to tell them that, despite their records, they had not received their money at all ( I could verify that it had never left my bank account ). I was told they put a note in my account and would flag it for review. I waited for another billing cycle to move through in case it needed time to get to accounting when they reconciled their books. Over this time, nothing in my account changed. Each time I had communicated with a representative, they assured that I was not being charged, nor would I be charged, interest. 

I called back on XX/XX/XXXX and finally was able to speak to a supervisor that pushed the review through to accounting. She told me to give it XXXX business days and I would be contacted by accounting once the issue was resolved. I was never contacted by accounting. 

I then logged into my account on XX/XX/XXXX to see that my account had been reversed and I now owed {$18000.00} and they were processing a refund for the amount they had originally thought I overpaid. The refund for {$9300.00} posted to my account on XX/XX/XXXX, and I have not yet received this refund check ( as of today, XX/XX/XXXX ). I called and asked them to stop the payment on the refund check, and clear my account back to the original amount owed to I could pay it off. 

Additionally, when they reconciled the account to reverse the payment they had posted but not received, they back-dated the posting to XX/XX/XXXX, and then added the interest that would have accrued on an $ XXXX loan over the months of XXXX, XXXX, and XXXX ( which I had been assured would not happen each time I called ). 

The account is still accruing interest. 

I have since called on the following dates : XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX Each call involved XXXX hours of wait time to reach a supervisor ( often a XXXX hour wait to reach an initial rep who then connects me with someone from the resolutions team, requiring an additional wait. Previous calls have had a callback option, preventing extended holds, but they have since removed the callback option and required a live hold. I have been on hold today ( XX/XX/XXXX ) for XXXX hours with still not contact from a representative. 

The latest activity on my account, communicated with a resolutions representative on XX/XX/XXXX was that I would pay my initial balance ( {$9300.00} ) and they were to put an inquiry through to the accounting department to remove the accrued interest since the start of this event, and stop payment of the refund check. This would result in my account being cleared to zero balance and the end of the issue. I was also told I would receive communication from the accounting department when this was resolved. 

I have since paid my portion, and the payment posted on XX/XX/XXXX. I was informed on my check in call on XX/XX/XXXX to give the department XXXX business days to resolve the inquiry. It has been XXXX business days, I have not received any updates, and my account still includes a balance for the refund they sent ( which I still have not received and have asked them to stop payment on multiple times ) and accrued interest. I am currently on hold ( XX/XX/XXXX at XXXX, current hold time XXXX XXXX minutes ) to inquire about a final resolution. For obvious reasons, I am not confident of the services ability to reconcile this issue. 

I have spent XXXX hours on hold or in communication with Mohela XXXX am continuing to be charged, and have not resolved this issue, which occurred from an error on their end of posting payment they never received. ( It actually took several phone calls an disbelieving representatives for me to even make them believe I had not sent the money ). 

See attached screen shots for dates and times of calls to Mohela at XXXX ( incoming calls represent a callback from their automatic hold system ). 

Please help.

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