Had a student loan that was purchased/taken over by ACS in 2005.

Reported to cras as positive.

In 2006, March, ACS reports it as "closed, paid".

In Nov, 2006 my loan was discharged due to disability (I get refund of my payments). (applied like a year before)

One month after loan was approved for discharge, ACS reports this positive closed account as NEGATIVE and the date it shall be on my report til is 2013!!!!!!

I disputed, called, wrote, Ombudsman..... nothing.

I contacted the office for civil rights as it was when "disabled" was attached to my account they made it negative.


Anyone else out there have any ideas? Did I do the right thing?

You were defaulted?? What do you expect?? This is not a civil rights issue.

Wow, I was?



When ACS took it, it was positive. ACS reported it as positive for two years, up until the time it was discharged for disability.

But thanks for your imput. If it had been reported as negative, and then they still reported it as negative..I would have no right to complain.

If you were not in deferment or not paying up until the time your cancellation was processed, you would be stuck with the lates.

What specifically did they report?

The correct status is paid in full by claim.

Payments due before the loan was paid in full by claim were still due, and if not paid (or refunded/recalled) delinquency would very likely be valid.

I am not familiar with refunds of payments made before a loan is discharged by claim.

Based on what you have stated, I am not sure of how AES could have violated any of your civil rights.

You have failed to state how you were discrimated against.

My cra reports reflected my account held with them. Balance, payments, etc.
Was not delinquent. Made payments on time.

Then BOOM!!!! 8 months after the account was closed, yeah, closed... they...well, Experian moves this account from my list of positive accounts to my list of negative accounts.

That's when I noticed it. I called and they, ACS said they would handle it.

They didn't. I disputed it with Experian and it came back verified.

In the account history section OK/OK/OK/Ok (for years)
then 8 months after it was closed, 1 month after they are told to refund my payments,
OK/OK/OK/Chargeoff,Bankruptcy,Collections

no kidding. None of the information on the account changed except for the fact I applied with the govt to have my student loans discharged due to disability, this wasn't my only loan.

No one else may seem anything wrong with it. But a positive closed account goes negative....

"Chargeoff" is often used for loan that is paid in full by claim.

If loan is discharged, or if the borrower defaults, the lender files a claim with the guarantor. Principle, interest, and fees are paid off.
Some credit agencies have a "government claim filed" notation.

Discharge is not forgiveness, it is not positive in the basic nature of what it is.

I am not seeing anything basically unfair, or incorrect, based on what you have said.

Your complaint that your civil rights has been violated is completely unfounded and lacking in merit. That is why the government was unable to help you.

I love the way people just assume that a person was never paying and always in default when they post something on here about their student loan being reported negatively. I didn't get from his post that OP was not paying--in fact from what he posted it appears to have been paid in full. Additionally, OP didn't say that the government couldn't/wouldn't help him. He just said that he contacted the office of civil rights. He said nothing with respect to its ability to help him with this. Everybody's so quick to jump on the "you were in default, what do you expect boat," without actually reading the post.

And I CAN see where the discrimination claim could lie (maybe that's because I'm a lawyer). You become disabled and your credit is negatively affected because of the discharge of debt (in this case it appears to be a refund) resulting from your disability. Though not necessarily discriminatory on its face, it could totally be discriminatory in its effect. You are injured (credit wise) due to your status as a disabled person.

Additionally I think it is patently unfair to define something that is paid in full by a claim as a charge off when most think of a charge off as an "uncollectable," debt that is written off of the books because there appears to be no hope of receiving payment from an individual.

UPDATE:

OMBUDSMAN contacted ACS. I sent copies of my credit files for the past few years INCLUDING the newer ones showing that the positive, closed account was marked as NEGATIVE after my discharge was approved.

No, was not in default. No, not ever late.

Discovered on the ifap.ed.gov website that a discharge does not change a positive account to a negative.
Further, if it was in default...for those of you who may fact this, it WILL be removed from the cr file because according to ed.gov, they are repsonsible for reporting...not the current holder.
This didn't apply to me because I wasn't in default.

Anyways, ACS has removed the negative mark and the account reports just like it has for year. Paid, Closed, no lates.

The discrimination folks and let them know a remedy had been given. So no further action will be taken with that regard.

Thanks for all your advice!

I stand corrected.