Consumer complaint received 2026-05-18 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA
State: VA

Complaint narrative:
This is an update to CFPB Complaint # XXXX, originally filed in XX/XX/year> regarding MOHELA/XXXX XXXX XXXX ( XXXX ) student loan servicing misconduct. My federal student loans are currently in an approved deferment status. Despite this, MOHELA has continued to increase the outstanding balances across multiple loan accounts every month. Between XX/XX/year> and XX/XX/year>, six ( 6 ) separate MOHELA/XXXX loan accounts experienced balance increases totaling {$470.00} in a single billing cycle, as follows : Account balance increased by {$82.00} ( from {$19000.00} to {$19000.00} ) Account balance increased by {$60.00} ( from {$11000.00} to {$11000.00} ) Account balance increased by {$49.00} ( from {$10000.00} to {$10000.00} ) Account balance increased by {$58.00} ( from {$10000.00} to {$11000.00} ) Account balance increased by {$21.00} ( from {$4900.00} to {$4900.00} ) Account balance increased by {$200.00} ( from {$65000.00} to {$65000.00} ) CREDIT REPORTING HARM FCRA VIOLATION : These inflated and inaccurate balances were reported by MOHELA to XXXX and identified on my credit report dated XX/XX/year>, confirmed via credit monitoring on XX/XX/year>. As a direct and measurable result of MOHELA furnishing false balance information to XXXX, my credit score declined XXXX points between XX/XX/year> and XX/XX/year>. This constitutes a violation of the Fair Credit Reporting Act, 15 U.S.C. 1681s-2, which imposes a duty on furnishers including loan servicers to provide accurate information to consumer reporting agencies. MOHELA has failed this duty across all six accounts. The credit score harm is documented and ongoing, as MOHELA continues to report inflated balances each monthly cycle without correction. Actions I have taken : Filed original CFPB complaint # XXXX in XX/XX/year> Monitored credit reports and confirmed continued inaccurate balance reporting by MOHELA to XXXX Retained screenshots and documentation of all reported balance changes and credit score impact Engaged the XXXX XXXX XXXX XXXX ( XXXX ) co-counsel in the active XXXX XXXX MOHELA litigation regarding this pattern of conduct Actions or inactions by MOHELA : MOHELA has continued to increase loan balances each month while loans remain in approved deferment status MOHELA has furnished inaccurate, inflated balance information to XXXX, causing measurable and documented credit score harm MOHELA has not provided any written explanation, corrected billing statements, or communication justifying these increases during deferment MOHELA has not corrected its credit reporting to XXXX, XXXX, or XXXX despite the inaccuracies being documented This pattern of conduct is consistent with allegations in active federal litigation, including XXXX v. MOHELA ( XXXX XXXX XXXX , amended complaint XX/XX/year> ), which alleges systematic overcharging and misleading account communications in violation of the Consumer Financial Protection Act and DC Consumer Protection Procedures Act. I have been in contact with consumer protection legal counsel regarding my rights and options under both federal and state law.

Company response to consumer: Untimely response