XLS Transferred/Closed Accounts Still Validated?

[mike262]

Hello everyone and thank you for taking the time to read this. I'm new to posting but old to reading. Usually I can just search for the answers I am looking for.

 

I have 2 Student Loan accounts reported on EX from Xpress Loan Servicing (XLS). There are a bunch of lates sprinkled all over the total reporting. XLS has since gone out of business and transferred all their accounts to American Education Services (AES). AES is now reporting their own lines for the two loans. I attempted to dispute the lates with XLS but the letter was returned undelivered. I then disputed them with all three CRAs. TU and EQ responded with deletes of both the accounts and EX updated. I responded to EX with a letter explaining XLS's non existence and inquired as to how they validated from them. I received a basic response that told me nothing. I then called and after two supervisors they provided me with the phone number and address for AES and said they validated through them as the accounts were transferred to them.

 

This seems very wrong to me but I am not sure specifically how. How can a company that was not responsible for these accounts at the time of the alleged late payments validate them? How can they validate a trade line for a company that is currently out of business? AES is reporting their own trade lines, they have not taken up XLS's lines. Something seems wrong or even illegal here but I have not found any case law to support this feeling. Anyone have any experience with a situation like this?

 

 

FYI: Never been late with AES, both loans total about 30k together, never in default or collections.

Edited May 16, 2012 by mike262

[snowpuppy]

Am familiar with XLS, they were part of NeXt loan in the day. They were a flash in the pan of SL lending, owned by CIT Group (this is not Citi).

 

How old are these lates? While I understand you want to clean as much as possible, the older the TL, the less they will hurt your scores. Especially when it comes to SL's as they don't affect scores terribly. Defaults, recent late pays, the exception.

 

If these lates are relatively new, I would send a letter CMRR to AES and ask for a copy of your payment history with XLS. I wouldn't be harsh but simply ask for a copy. If they can't produce a payment history, I would ask them to delete the TL. All the servicers are in one hot mess these days. I doubt they could prove their own existence but as always YMMV.

 

As you discovered, SL's generally only report to one CRA and the others pick it up which is why they were easily deleted off 2 reports and not the third.

[mike262]

Thanks for your quick help!

 

It's kind of confusing. Originally, The two loans were Sallie Mae which started reporting in Aug of 2006 until Sept of 2007. I graduated in June of 2007 so Sept is when I consolidated and started paying them. The XLS picks up in Oct of 2007 and goes until Feb of 2011. The most recent late is 90 in Dec of 2010 on both accounts. I know this is a long account but there are three 180 days in 2009 and the first late reported is Dec of 2007.

 

I think it is a good idea to request my payment history with AES. I'm curious if they will only provide their trade lines from Mar 2011 to present. thanks again!