Consumer complaint received 2024-06-07 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: MA

Complaint narrative:
This complaint is a re-file from COMPLAINT ID : XXXX which was SUBMITTED ON XX/XX/XXXX and is still NOT resolved. 

Mohela agreed to refund my account but has NOT done so, it is now half a year later and was charged on XX/XX/XXXX. 

My personal banking services emailed me a notice of overdraft due to insufficient funds. I checked my account and saw that Mohela my student loan servicer processed an auto debit amount of {$1500.00} on XX/XX/XXXX but my monthly payment is suppose to only be {$190.00} per month as stated on my monthly bill. I called Mohela to discuss the matter and their representative informed me it would be refunded to my account within 24 hours, unfortunately this was not true. I called Mohela again on XX/XX/XXXX informing them the funds have not been refunded. My biggest concern is how this is impacting the millions of borrowers as many people can not afford the time or resources to constantly call their servicer and be on hold for hours and many do not have the means to be depleted of their personal finances due to loan servicer 's mistakes. This is an issue of administrative mistakes that serverely impacts those who are even more underprivileged. In no other business/organization would be able to wrongfully charge consumers thousands of dollars and still be operating without putting a halt to their payment processing until issues have been resolved. Another customer representative informed me they had wrongfully charged another borrower their full loan balance! There has been no accountability for their mistakes and the level of wrongdoing is appalling. Loan servicers mistakes are severely jeopardize consumer 's financial resources and put consumers at risk of their housing/rent/mortgage timely payments. I truly hope CFPB takes this matter with utmost importance to ensure this is not another system perpetuating inequality for undeserved populations. 


Company 's Response on XX/XX/XXXX Dear XXXX XXXX : MOHELA has reviewed the Consumer Financial Protection Bureau ( CFPB ) complaint, regarding your auto debit. Our records indicate that a forbearance was applied to your account through XX/XX/XXXX. Please be assured that the months from XXXX through XX/XX/XXXX will count toward Income-Driven Repayment forgiveness and Public Service Loan Forgiveness , assuming all other requirements of these respective programs have been met. Interest rates were temporarily adjusted to 0 % effective XX/XX/XXXX, through XX/XX/XXXX. Any interest that accrued during this time has been removed. As your loans were in this forbearance, a request was submitted to have your XX/XX/XXXX payment in the amount of {$1500.00} refunded. Your next auto debit is set to withdraw on XX/XX/XXXX, in the amount of {$190.00}. If you have any other questions or concerns, please dont hesitate to contact a member of our Customer Advocacy Team at XXXX from XXXX to XXXX Mondays, XXXX to XXXX Tuesdays and Wednesdays, or XXXX to XXXX Thursdays and Fridays, XXXX XXXX XXXX You can also visit www.Mohela.com. Sincerely, MOHELA

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