Consumer complaint received 2026-01-19 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: CA

Complaint narrative:
I filed the following complaint mainly focusing on the credit reporting agencies. I was asked to give the following assessment of CFPB and responded on XX/XX/XXXX : COMPLAINT ID XXXX SUBMITTED ON XX/XX/XXXX PRODUCT Credit reporting or other personal consumer reports ISSUE Incorrect information on your report ( 855 ) 411-2372 ( Voice and TTY ) consumerfinance.gov XXXX XXXX XXXX Response to CFPB for COMPLAINT ID XXXX Incorrect information on your report Dear CFPB, My complaint with the credit reporting agencies, XXXX, MOHELA has escalated into my seeking legal representation. I also sent the following requests for investigation : ( 1 ) the FSA Ombudsman for a Federal Servicing Review of MOHELA Errors ; ( 2 ) the Attorney General for Investigation of MOHELA 's, XXXX 's, and Credit Reporting Agencies ' conduct ; ( 3 ) to the Congressional Oversight for Inquiry into the Federal Servicing Misconduct ; ( 4 ) to ED Inspector for Audit to uncover the Federal Servicer Misconduct and ( 4 ) the Office of Inspector General. CFPB requests for their collective investigation into the false reporting led nowhere. The credit reporting agencies, XXXX, and MOHELA are equally responsible for breaking statutes and federal law because each has an obligation to me the consumer for Fair credit reporting. All aforementioned parties including CFPB received documentation of the zero-balance account from my online MOHELAs account. MOHELA does not issue a forgiveness approval letter. For PSLF, IDR forgiveness, or consolidationbased forgiveness : The official record of forgiveness is the zerobalance account The XXXX  transfer letters confirming forgiveness was in process The MOHELA online account showing {$0.00} balance The absence of any active loans The CFPB confirmation of MOHELAs reporting The payment history ending on XX/XX/XXXX MOHELA never mailed a Congratulations, you are forgiven letter. They simply zero the balance and update the account. This is standard across all servicers. 
To clarify that the issue is not whether forgiveness occurred it did, and the documentation is complete. All evidence confirming the XX/XX/XXXX loan forgiveness including screenshots of my MOHELA online account, XXXX emails confirming forgiveness was in process, and the zerobalance records has already been provided to all parties including CFPB. These records were passwordprotected, timestamped, and accessible directly through MOHELAs system until MOHELA began prompting me to create a new account, which I can not do for legal preservation reasons. 
The issue before us is not whether forgiveness occurred. It is the systemic misreporting, contradictory communications, and regulatory failures that occurred after forgiveness, including : XXXX XX/XX/XXXX denial of an IDR plan, which makes no sense MOHELAs misclassification of a forgiveness request as a repayment request XXXX, XXXX, and XXXX failure to correct false reporting XXXX failure to investigate disputes as required under the FCRA Conflicting and contradictory communications from all parties MOHELA : Current Federal Scrutiny and Relevance to XXXX XXXX Case Federal and State Investigations : MOHELA is under investigation by multiple state attorneys general for widespread servicing failures. The Department of Education previously halted new account assignments to MOHELA due to mismanagement, including failure to process over 460,000 repayment applications. Borrowers nationwide report contradictory communications, incorrect balances, and mishandled forgiveness. 
National Pattern of Errors Delays in implementing the SAVE plan Incorrect payment counts Misapplied payments Failure to process forgiveness Contradictory account statuses Inaccurate credit reporting These errors have caused measurable harm to my credit, housing stability, and financial opportunities. Given the national scrutiny MOHELA is currently under including federal investigations, state attorney general inquiries, and documented servicing failures my case is part of a broader pattern of misconduct that strengthens the legal posture.The legal issue is the postforgiveness misconduct by MOHELA, XXXX, XXXX, XXXX, and XXXX 
Key Points : XXXX loans were forgiven XX/XX/XXXX. 
MOHELAs system reflected a XXXX balance for nearly two years. 
XXXX issued two letters confirming forgiveness was in process. 
All evidence was provided to counsel. 
The Legal Violations FCRA 611 Failure of credit bureaus to investigate disputes FCRA 623 Furnishers ( MOHELA, XXXX ) reporting inaccurate information Failure to maintain accurate records Failure to correct known errors Issuing contradictory and misleading communications XX/XX/XXXX LOAN FORGIVENESS DATE MOHELA SYSTEM SHOWS {$0.00} BALANCE FROM THIS DAY XX/XX/XXXX XXXX balance appears in MOHELA XXXX XX/XX/XXXX No active loans ; no repayment status XX/XX/XXXX XXXX letters confirm forgiveness XX/XX/XXXX CFPB filings reflect XXXX balance XX/XX/XXXX No loan activity ; no payments due XX/XX/XXXX MOHELA continues to show {$0.00} XX/XX/XXXX No active loans XX/XX/XXXX No active loans XX/XX/XXXX No active loans XX/XX/XXXX No active loans XX/XX/XXXX No active loans XXXX XXXX No active loans XX/XX/XXXX One-year anniversary of forgiveness XXXX XXXX XXXX balance remains unchanged XXXX XXXX MOHELA issues erroneous IDR denial ( for a loan that no longer exists ) MOHELA, Higher Education Loan Authority of the State of Missouri ( Federal Student Loan Management ) attempted to collect a debt not owed, in violation of Civil Code 1788.17. Attempting to collect during an active dispute is unlawful. In XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ), the court held that the Rosenthal Act prohibits deceptive and unfair collection practices. 

UNFAIR COMPETITION ( Bus. & Prof. Code 17200 ) MOHELAs conduct is unlawful because it violates Civil Code 2982, AB 2311, the FCRA, and the Rosenthal Act. MOHELAs conduct is unfair because it harms me by increasing my income-to-debt ratio, lowering my credit ratings, increases my cost of loans, and leads to higher interest rates on consumer items such as credit cards, car loans, etc. without countervailing benefit. These entities conduct is fraudulent because consumers, unlike myself, are likely to be deceived by inaccurate payoff and deficiency statements. 
No definitive actions were taken to rectify the matter by the CFPB up to this point. Thereby, I am submitting a complaint regarding false credit reporting, contradictory servicing, and failure to correct known inaccuracies involving MOHELA, XXXX, and the credit bureaus. MOHELAs authoritative records show my loans were paid in full, yet fabricated balances continue to appear in my credit reports. 
I request a full investigation and enforcement action.

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