Charge off with BoA and DFAS

[Truyth]

Good Morning folks,

 

I had a past due loan totaling $1,701.00 that was transfered from Community Bank/BOA to DFAS in November 2008 for collections.

This bank, Community Bank is on a military installation that is part of BOA. Because they are affiliated with the military as well, when loans go unpaid it goes directly to DFAS for wage garnish. You get a nasty letter to your Commanding Officer and such. I never received any such letter nor were my wages garnished.

 

In Jan 2010 I seperated from Active Duty owning zero amount to DFAS and was giving a $35,000 seperation pay as well. This charge off is still showing on my credit report from Community Bank/BOA and not from DFAS if it was infact transfered to DFAS.

 

In writing, Community Bank has told me this, "As per our phone conversation, your past due loan # was charged off 11/18/08 and sent to DFAS. Once the file leaves our department we do not try to contact you or try to recover any debt owed. You would have to contact DFAS at # and verify if that debt was ever paid. If it was paid in full they need to send you a letter stating that and that would be your proof of the debt paid. You may send a copy of the letter to our Loan Dept. and they may update your information to paid charge off.

 

I spoke with DFAs numerous times and they have told me that I owe nothing and in fact they show no record of this debt ever showing up and would have nothing to show that the debt was paid since on their side it did not exist. I'm now currently working for the Department of Navy as a civilian and I'm getting paid by DFAS. I told BOA that I'd happily pay the $1700 to get it off my credit report, but they said they don't own the debt anymore.

 

I've challenged it with Experian and Equifax and it's both come back with negative results.

 

Any help would greatly be appreciated!