OMG - 28 year old loan hits my credit!!!

[justme5]

Is this right?

 

OK. 28 year old loan. I had defaulted on this loan more than 15 years ago. Paid it 8 years ago. It just came up on my credit report. It is a Perkins Loan (formerly NDSL). I had a settlement on some of the fees. But as it turns out the collector did not pass on the settlement, took their full fees out, and left a balance.

 

OK, so I can accept that. Dirty tricks happen in this world all too often. I will pay the dog gone "left over". But this stinks. Can they do this to me? Am I now stuck with bad credit for another 7 years? Anything I can do? From what I see there may have been a law passed in 1998 that may allow these loans to be reported on indefinately? Or do I have some rights?

[Jaymes]

Who is reporting it... the gov't or a CA?

 

In any event, it sounds like this debt is past the permissible reporting period. If it's with a CA, you will wan to DV right away... see the post in the main credit forum re 1-2 punch.

[LynnInMN]

Who is reporting it... the gov't or a CA?

 

In any event, it sounds like this debt is past the permissible reporting period. If it's with a CA, you will wan to DV right away... see the post in the main credit forum re 1-2 punch.

 

Probably subrogated by the feds, which restarts the 7 year clock.

[justme5]

It is a collector. It is not in the hands of the department of education. This collector is still working with the school.

 

I will pay it off. But I am confused. There was a new law created abour reporting certain loans and I cannot tell if they have a legal right to do this. I want to get it wiped. This is a nasty collector too.

 

Please, someone must know if they can legally do this?

[justme5]

Collector is reporting it. It is not at the dept of education, but still at the college level. This is a nasty collector. Anyone understand the new law that was created in 1998? I will pay this, but I prefer to be able to permanently rebuff this reporting.

[Jaymes]

I'd try to consult with an ombudsman. Don't talk to the CA.

 

You might be able to set up a rehab... the ombudsman would know. Doing so hopefully would wipe the old derogatory info off your reports, and once you complete rehab it should convert to a positive TL, then you can pay it off at that point. YMMV depending on the loan type. If it's a loan with a school, all bets might be off.

 

Obviously, you've learned by now to keep your paperwork FOREVER and never trust what a CA tells you if it's not in writing.