Isaiah Ham, a resident of Susquehanna County, Pennsylvania, has filed a lawsuit against the Higher Education Loan Authority of the State of Missouri (MOHELA) in the Court of Common Pleas of Allegheny County on an unspecified date. The complaint accuses MOHELA of multiple violations related to debt collection practices, particularly under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Extension Uniformity Act (FCEUA).
The case unfolds with Isaiah Ham's assertion that MOHELA engaged in improper and unauthorized financial transactions regarding his student loan payments. After graduating from college in 2016, Ham set up automatic deductions for his monthly student loan payments amounting to $336.70. However, following a transition to MOHELA as his loan servicer in October 2023, irregularities began to surface. According to Ham, MOHELA started deducting payments twice a month—$258.94 around the 4th or 5th and $77.76 around the 26th—resulting in overpayments.
The situation escalated in July 2024 when MOHELA transitioned to a new online platform. Instead of correcting their previous errors, they deducted $336.70 twice a month from Ham’s account starting that month, leading to double payments without authorization. This continued unauthorized deduction persisted despite Ham's attempts to resolve the issue through communication with MOHELA.
In addition to financial discrepancies, MOHELA allegedly sent dunning letters falsely claiming that Ham was delinquent on his payments and threatened potential negative impacts on his credit score due to supposed arrears. These actions have reportedly caused significant distress for Ham, including anxiety and embarrassment over his financial standing.
Ham's complaint outlines several counts against MOHELA: harassment and abuse under §1692d of FDCPA; false representation under §1692e; and unfair practices under §1692f. Each count is supported by allegations such as double-charging for loan payments, failing to properly credit accounts, misrepresenting debt status, and threatening adverse credit reporting without basis.
Through this legal action, Isaiah Ham seeks declaratory judgment affirming that MOHELA violated both FDCPA and FCEUA laws. He demands actual damages for financial losses incurred due to double-payments alongside statutory damages up to $1,000 per violation as stipulated by law. Additionally sought are reasonable attorney fees associated with pursuing justice against these alleged infractions.
Represented by Emily S. Gomez-Hayes from Law Office Of Emily Gomez LLC based out of Pittsburgh PA., Isaiah aims not only at rectifying personal grievances but also ensuring accountability within debt collection practices more broadly. The ID case is: CVPDD008S247F610.