Consumer complaint received 2025-03-25 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: FL

Complaint narrative:
To Whom It May Concern, I am writing to formally dispute the inaccurate and inconsistent reporting of my federal student loan balance across all three major credit bureaus ( XXXX, XXXX, and XXXX ). Despite my loan balance being in deferment, the balance has increased from approximately {$46000.00} to {$48000.00}, indicating that interest was improperly applied during this period. This constitutes a direct violation of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681e ( b ), which requires credit reporting agencies to maintain maximum possible accuracy in their reporting.

Violation of Federal Laws and Privacy Protections 1. Improper Accrual of Interest During Deferment My student loan has been in deferment, during which no interest should have accrued on a federally subsidized loan. 
The reported balance increase indicates a clear error, violating federal regulations governing student loan deferment. 
2. Failure to Notify of Deferment Ending or Interest Accrual I never received any written or electronic notification that my student loans would exit deferment or that interest would begin accruing.

This failure to notify is a violation of the Higher Education Act of 1965, which mandates proper borrower notification.

3. Unauthorized Disclosure and Mishandling of Personal Financial Information My personal financial information was compromised without my authorization, a direct violation of the Family Educational Rights and Privacy Act ( FERPA ), 20 U.S.C. 1232g, 34 CFR Part 99. 
Additionally, the XXXX data breach exposed sensitive information of millions of consumers, including myself, further contributing to these inaccuracies. 

The CFPB has ongoing litigation against XXXX and XXXX for systemic failures in protecting consumer data, including inaccuracies in credit reporting and mishandling sensitive information. Given the scope of these violations and the continuing harm caused by XXXX XXXX data breach, I am formally requesting inclusion in any class-action lawsuit related to these violations. 

The XXXX data breach resulted in millions of consumers personally identifiable information ( PII ) being compromised, including mine. This breach not only exposed my data but also created ongoing risks of identity theft, unauthorized access, and inaccurate reporting of financial information, all of which are directly tied to the current inaccuracies in my credit report.

1. Permanent Removal of All Student Loan Accounts from My Credit Report Due to these documented violations, the continued reporting of my student loan balance constitutes furnishing inaccurate and unverifiable information, prohibited under 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ).

Under 15 U.S.C. 1681i ( a ) ( 5 ) ( A ), if this information can not be verified within five ( 5 ) business days, it must be permanently deleted.

2. Immediate Full Discharge and Cancellation of My Federal Student Loans Due to the unauthorized access, breach of security, and failure to properly notify me of my loan status, my loan agreement is legally void.

Violations of FERPA, Title IV of the Higher Education Act, and the Privacy Act of 1974 ( 5 U.S.C. 552a ) support the immediate discharge of this loan.

3. Recognition and Inclusion in Any Class-Action Lawsuit I formally request to be included as a claimant in any class-action lawsuit involving : The CFPBs ongoing case against XXXX and XXXX. 
The XXXX data breach settlement or any subsequent litigation regarding inaccurate credit reporting and mishandling of sensitive information. 

I am not requesting a fraud alert but have already secured my credit information by freezing my reports. Due to the urgency of this matter, I require a written response within five ( 5 ) business days detailing the corrective actions being taken.

Failure to comply will result in immediate escalation, including formal complaints with : The Federal Trade Commission ( FTC ) for FCRA violations.

The U.S. Department of Educations Office for Civil Rights for FERPA violations.

The Florida Attorney General for failure to protect my rights under state and federal laws. 
Pursuing legal action against all responsible parties. 

Please provide all correspondence in writing to my address listed above. 
Sincerely, XXXX XXXX

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