Consumer complaint received 2025-02-16 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: NY

Complaint narrative:
On XXXXXXXX XXXX XXXXXXXX, I recieved a check from Mohela for {$660.00} - it was a Treasury check that was issued on XX/XX/XXXX and I received it 13 months late. The check came in a white envelope, a red sharpie note written on the envelope that the check was lost in the mail. Also, the check was thorn. I looked at the date, I knew it was expired but I deposited on my account at XXXX. The next day, XXXX returned the check with a note, " check could'nt be deposited '', need a to contact sender to re-issue another check. I called Mohela immediately to let them know I received the check over 1 year late, another check needs to be reissued. While I was on the phone, the representative mentioned another check for {$520.00} was on the way to me as well. I was very happy to hear that but I also asked when will the first check arrive. I was told, it is under investigation, it will take 180 days. I asked why 180 days, she replied, the check was cashed, they're conducting an investigation. I waited 3 months, I didn't hear from them, I contacted Mohela in XXXXXXXX XXXX XXXXXXXX, I was told it hasn't been 180 days. I needed to wait. Somehow, I found a number for the treasury department, I called and explained the scenario, they transferred me to Department of Education. I called DOE, I left a message. 2 days later, XXXX XXXX, DOE XXXX returned my call. I explained the reason for my call, she asked for my SS #, I gave it to her over the phone. While on the phone, she looked it up and said, " they're lying to you '', I see both of the checks here, it's a lie, the money is there. She said, don't worry, I am going to send them an email right now so that they could mail your check to you immediately. I was very happy, I thought my XXXX checks will arrive in no time. XXXX months went by, no sign of the checks. I decided to call Mohela. I called them in XXXX, someone ansered and said, " your check was cashed, the money is gone. Our investigation is still on-going. we'll let you know as soon as we're done our investigation. I was very upset listening to the lies. I said to her, there's no such thing, you're making this up. I said to her, " why are you guys holding my money? I am entitle to my refund from the over payments I made during the past 16 years. I let her know that I spoke with DOE director and the money wasn't stolen. She disconnected the phone on me. Two weeks later I called back, the representative said to me, " we just mail you the first check ''. Allow 7 to 10 business days, We've sent the second check to the Treasury department for signature, as soon as we get it back from the treasury department, we will mail it to you as well. I was very happy. I checked my mailbox every day to see if it arrived. It was just another lie. In the middle of XXXX of XXXX, a couple of weeks before the election, I contacted Mohela- at that point, I knew they weren't serious, and they played the game very well. The representative whom I spoke with said to me, I am very sorry to let you know, your checks have been expired, we can't re-issue another one. The fact that you've contacted the DOE to complain about Mohela, we take the money back. I was shocked.

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