Consumer complaint received 2022-12-12 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: NJ

Complaint narrative:
I called Mohela, my student loan company, on XX/XX/22 to request a refund for payments made during the pandemic. They said that my application is submitted and it should take XXXX  days for me to receive my refund ( a little over {$10000.00} USD ). I told them not to send it to my XXXX account because that account is closed and I would like that noted. Mohela agreed and said that I would receive a check. 

I called again on XX/XX/22 to ensure my application was submitted properly and followed up via email. I was told that my application was submitted and I would receive my refund in XXXX days. On XX/XX/22, I still heard nothing and had not received a check. However, when I logged into my Mohela account, I noticed they put the over {$10000.00} USD back onto my account balance for payment due, as well as interest that was not there prior. During my call on XX/XX/22, the man on the phone said I would receive my check in XXXX  days, which is different from what I was originally told. He also said the interest was accrued prior to the pandemic and was added back on. This did not make sense to me because I paid everything on time, and I also have XXXX XXXX XXXX Summary from Mohela documenting all payments. I told him this, but he said I still owed it. I offered to send Mohela documentation, and he did not follow up. 

I received notification that all credit bureaus ( XXXX, XXXX, and XXXX ) were notified of my new debt of over {$10000.00} USD. My credit score dropped immediately. Please keep in mind that I now have additional interest that I do not believe I owe on my account, as well as over {$10000.00} USD on my student loan account, despite the fact that I do not have that money back to me. 

As of XX/XX/22, 90 business days have now passed with Mohela. I still have not received a check or any notification. I still have a lowered credit score, over {$10000.00} USD on my student loan account, and interest that I do not believe I owe. 

I called Mohela again on XX/XX/22. The first woman who picked up transferred me. The second woman said something completely different than the man on XX/XX/22. She said that the interest was a charge that Mohela was placing on my account. She said that because I requested a refund of my money, Mohela is charging me interest for requesting this money. Please note that I have this recorded and saved. I then asked the woman when I would be receiving my money, and she said I would have to wait anotheXXXX XXXX business days. She changed her tone later, and said that I may have to wait another XXXX business days. I asked her where my check is because I keep being told that my check is in process, but I don't know what that means, aside from the fact that it was submitted. She says she has no idea where my check is and that Mohela is unable to access that information. I asked to speak to a manager.

After my third phone call transfer, I spoke with a manager. I told the manager that I have now heard two different stories about what the interest is about and I would like clarification on this since I still don't believe I owe this money, I still haven't received my check, and I would like the over {$10000.00} USD removed from my Mohela account. When I asked for clarification on the interest, she said she didn't know what it was. When I asked about where my check was, she said she didn't know. When I asked again, she said it looks like they tried to send my check to my closed XXXX account. I told her that I have now checked two times ( on XX/XX/22 and XX/XX/22 ) to ensure that didn't happen, and she then said that she's not sure if that's what actually happened. She said she would need to check with the payments department. She also said she can't remove the {$10000.00} USD from my account balance. I asked for clarification on why that was appearing on my account balance, despite the fact that I didn't receive any money back. She said that she will talk to the payments department and there is nothing she can do right now. 

It is now way past the original XXXX  days, and past the second due date of XXXX business days. Also, I have worse credit because of the money owed back, which I still haven't received. I also still dont know what this extra interest/charge is, as Ive heard three different stories from three different people. 

Additionally, when I log in to Mohela and view Payment History, a complete history is not listed anymore. I have attached the XXXX XXXX  Summary to this request to showcase this. I believe more money has been added to my account without my consent or knowledge. I also know that I have not received a cent from Mohela yet. I would like to know why I dont see a complete payment history when I log into Mohela.I believe that Mohela added more money owed to my account than necessary. I made payments pre-pandemic that did not qualify for a refund, so I did not ask for a refund. I believe these payments are not being refunded, but these pre-pandemic payments are still being added back to my account. 


Please note that I am willing to provide any more documentation of this matter, such as recorded phone calls or emails, as necessary.

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