Student Loans, Late Payments and Credit Reporting.

[TheBlueberry]

The bank where I have my student loans reported three lates to the credit bureaus while I was on deferment! I have asked the bank investigate this and they sent me a letter stating that they are accurate.

 

 

What are my options here? It's very frustrating since they are wrong and I was on deferment. All they did was sent a plain letter with no evidence.

 

Any help is greatly appreciated!

 

Did you get a backdated deferment? If so, the bank will argue they are accurate. However, the Federal Trade Commission and the US Department of Education's opinion is that a backdated deferment acknowledges a time period when no payments were due where negative credit history must be removed. If they wanted to reported "accurate" as they have stated then they should not have granted you a backdated deferment. The FTC's letter on the matter is quite clear, they can't keep a file on you saying you're up-to-date and yet keep outdated information on you with the credit bureau because "it was accurate at one point in time". This goes against the FCRA's 623 statute.

 

Remind them of their obligations under the FCRA to report "accurate" and "updated" information.

 

I did get a backdated deferment on all four. I have to call them in a couple of days so I trying to figure out the best situation. What should I say? Should I mail a letter to them explaining this?

Any advice is GREATLY appreciated!

[billyd]

The bank where I have my student loans reported three lates to the credit bureaus while I was on deferment! I have asked the bank investigate this and they sent me a letter stating that they are accurate.

 

 

What are my options here? It's very frustrating since they are wrong and I was on deferment. All they did was sent a plain letter with no evidence.

 

Any help is greatly appreciated!

 

Did you get a backdated deferment? If so, the bank will argue they are accurate. However, the Federal Trade Commission and the US Department of Education's opinion is that a backdated deferment acknowledges a time period when no payments were due where negative credit history must be removed. If they wanted to reported "accurate" as they have stated then they should not have granted you a backdated deferment. The FTC's letter on the matter is quite clear, they can't keep a file on you saying you're up-to-date and yet keep outdated information on you with the credit bureau because "it was accurate at one point in time". This goes against the FCRA's 623 statute.

 

Remind them of their obligations under the FCRA to report "accurate" and "updated" information.

 

I did get a backdated deferment on all four. I have to call them in a couple of days so I trying to figure out the best situation. What should I say? Should I mail a letter to them explaining this?

Any advice is GREATLY appreciated!

 

Tell them that you have a backdated deferment, which is a period where no payments are due. Since a deferment acknowledges a period when no payments were due then they should delete negative credit history due to it. Their obligations fall under FCRA Section 623. The statute says that funisher's of information must update and also correct reports. This is the guidance the US Department of Education gives to its lenders/schools.

[weallneedcredit]

Can someone confirm this please. If I am in the rehab program does this mean that there is a chance that my original creditor may not update my status from negative to positive on my credit. I was told that all derogatory information would be completely removed as long as i fulfilled the rehabs agreement of 9 months of payments and no lates!!! Please someone respond, I only have 2 more payments left and would really really like to know... Someone that really knows not someone that just wants to say something!!!! Thanks guys,,,,

[lajeff7]

Can someone confirm this please. If I am in the rehab program does this mean that there is a chance that my original creditor may not update my status from negative to positive on my credit. I was told that all derogatory information would be completely removed as long as i fulfilled the rehabs agreement of 9 months of payments and no lates!!! Please someone respond, I only have 2 more payments left and would really really like to know... Someone that really knows not someone that just wants to say something!!!! Thanks guys,,,,

 

bump please. Same situation here - completed rehab told derog would go away, now accounts show delinquent/charge off. Is it possible to get the derogs to go away other than via time?

[devotedtod]

I had to call US dept of education and they sent letters to the CRAs to have them remove the negative accounts and negative notations.

[sentinel0]

Okay I'm like super confused on this one, I have a subsidized and unsubsidized stafford loan through NelNet that is hurting my credit the most out of everything else. I called the Direct Consolidation Loans division of the Department of Education to find out what can be done. I was told that since my loans are not in default there wasn't anything that could be done. My two loans have not so great payment history and was hoping to find some way to get the not paid on time items removed. I think I missed something about the rehabilitation of the loans. The rep told me that the loans could not be rehabilitated unless they were in default and if they were and the government buys that loan the status will report as the status it was in when they purchased the loan. I didn't understand everything the lady was saying but the rehab is to get you back on terms with the original lender? I'm very confused on how to make this better, I recently made a payment and have deferred the loan for a month and I start school again in August. I'm going to do some additional searching on the board before I create a new topic, information is here it's just challenging to decipher if it's current or relevant.

[cynthia zoren]

Great point! Thanks for sharing this with us.