A “faulty” transfer of student loan accounts from NelNet to Mohela led to “millions of consumer credit reporting errors,” lawmakers say…
A"faulty" transfer of student loan accounts from NelNet to Mohela in 2023 led to"millions of consumer credit reporting errors," lawmakers say in a new letter to government agencies reviewed by CNBC.
Mohela appears to have failed to inform the credit reporting companies of each loan transfer from NelNet, the lawmakers said they found in their investigation. As a result, many borrowers had their single loan balance reported twice, once by each servicer. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyThe credit reporting companies identified"over 100,000 cases" in which the reporting errors led borrowers to have an incorrect credit score, according to the lawmakers' investigation. Thousands of borrowers had their credit scores drop by more than 20 points, they said.
The credit reporting companies told the lawmakers the duplicate balances"have been resolved now," the letter said.
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