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Disputing incorrect "Date of First Delinquency"...


gnarlywood
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I graduated from North Carolina in December 2001, and long-story short, I had 15 separate Federal Stafford student loans. My parents destroyed the rest of my credit as I finished school. I became quickly buried, never made a payment on the student loans, was too ashamed to even communicate with them (things were beyond bad by then and I became extremely depressed).

 

Based on combined information of my reports, the baddies will come off in May & June 2010.

 

TU says removal date is 05/2010.

EQ doesn't have a removal date, but reports first delinquency as 06/2003.

EX isn't giving me any useful dates online (delinquency or removal), although the date opened is the same 06/2004.

 

These 15 entries are by the North Carolina State Education Assistance Authority (NCSEAA), which is noted as a "partner" of College Foundation, Inc (CFI) of North Carolina according to online literature. Therefore, these entries are marked as "collections" where noted, as CFI is technically the OC.

 

My graduation date was Dec 2001. Like I said before, I never made payment or arrangements. According to the terms of the loans, I believe first payment was due 6 months following graduation, so June or July 2002. By August 2002, my account should have been considered "delinquent." At no point did I communicate with CFI regarding an extension of my grace period. By this, these 15 lines should have already dropped off of my reports a few months ago.

 

I nearly have in writing from NCSEAA that I had never made a payment on this account. This summer, NCSEAA attempted to garnish my wages to offset this debt. I disputed & won and in the document findings from the hearing was this line:

 

Debtor failed to remit payments as required, and his loans were declared in default on 10 June 2004. Since default, Debtor has made no voluntary payments on these loans. NCSEAA has received $2452.00 via federal offsets that have been applied toward the outstanding loan held by it. (federal offsets = my federal tax refunds.)

 

Although it doesn't explicitly say that I made no payments before my loans were declared in default, at no other point in this document does it mention any other payments or arrangements made.

 

I applied for consolidation of these loans last month, so my debt with NCSEAA will be soon satisfied and I'll generate a positive trade line.

 

I know that student loans are a slightly different animal when it comes to disputing them and obviously I acknowledge this debt is my own, but these dates are inaccurate! Those 15 baddies are almost all that I have remaining from what my parents did to me. So I ask the powers that be...

 

What should be my plan of attack? I know I should go directly to the CRAs and dispute by mail, but should I include this document that I have? Other documents, such as proof of my graduation date & terms of Stafford loan grace periods, etc.? Help, please! :rolleyes:

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I drafted this letter to send to the CRAs...

 

This letter is to open a dispute of information provided by a collection agency that is reflected on my ______ credit file.

 

My credit file reflects 15 negative accounts with the North Carolina State Education Assistance Authority (NCSEAA), a collection agency for accounts originally held by College Foundation, Inc of North Carolina (CFI). These 15 accounts are treated as a single debt for billing purposes by the NCSEAA, therefore a blanket dispute is relevant.

 

I am disputing the date of first delinquency for all 15 accounts, and therefore, the date of removal from my credit report pursuant to the Fair Credit Reporting Act.

 

For my college education, I obtained federal Stafford loans through CFI between July 1997 and June 2001. Federal Stafford loans offer a 6 month grace period following graduation before repayment begins. I graduated from the University of North Carolina at Chapel Hill in December 2001, confirmed by the enclosed proof of enrollment document from the UNC registrar’s office. Therefore, repayment was scheduled to begin in June or July 2002.

 

I never made a payment on my loans. I never arranged for an extended grace period or continued my education which would trigger an extended grace period. By these actions, my accounts with CFI (and now NCSEAA) should have a reported date of first delinquency no later than August 2002.

 

In July 2009, a hearing by the NCSEAA regarding a wage garnishment dispute resulted in a statement of findings that included my payment history. A copy of this statement of findings is enclosed for your reference.

 

Debtor failed to remit payments as required, and his loans were declared in default on 10 June 2004. Since default, Debtor has made no voluntary payments on these loans. NCSEAA has received $2452.00 via federal offsets that have been applied toward the outstanding loan held by it.

 

Federal offsets via income tax refund withholdings following default are the only payments that have ever been applied to these accounts, as noted by the NCSEAA itself. In October 2009, I applied for a guaranteed federal direct consolidation loan through the US Dept of Education to satisfy my debt with the NCSEAA.

 

I would like this information corrected, which will require removal of these 15 negative accounts pursuant the FCRA because their age has exceeded 7 years.

 

Have a wonderful day.

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I have had a similar experience with bad student loan debt. They must be paid eventually and they don't follow same reporting rules. The last date of activity would be when the loans were paid (no matter how they were paid). It is my understanding that they will show up for 7 years after that date. (if negative and 10 if positive) This seems to be what is going on with my student loans. I consolidated.. so those old loans were paid off by the consolidation. They continue to report negatively I assume until 7 years after the consolidation. I have 43 loans because of all of the change overs.

 

good luck. I don't have any hopeful information about this, but you aren't alone.

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Federal student loans can report much longer than the 7yr period for other types of credit. that being said, the individual lates themselves cannot be reported past 7yrs from the DOFD of each late, so they will start falling off month by month.

 

however, before you send that letter you need to be absolutely sure that there is no history that isn't being reported yet. because they WILL update the history and add all those other lates that aren't being reported, possibly to present since you're still in default.

 

SLs are not something you want to play with or attempt to bluff.

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Federal student loans can report much longer than the 7yr period for other types of credit. that being said, the individual lates themselves cannot be reported past 7yrs from the DOFD of each late, so they will start falling off month by month.

 

however, before you send that letter you need to be absolutely sure that there is no history that isn't being reported yet. because they WILL update the history and add all those other lates that aren't being reported, possibly to present since you're still in default.

 

SLs are not something you want to play with or attempt to bluff.

I'm definitely informed that federal student loans don't have a SOL, so liability never truly goes away until paid -- only each bad mark falls off after 7 years but can resurface anytime if the loans continue to go unpaid and they are "subrogated" by the feds.

 

I applied for a federal consolidation loan in late October that will satisfy my entire student loan debt (these 15 notes) with NCSEAA, so they should no longer have a stake in further updating the loan status in a negative manner.

 

What I'm trying to do here since I have this consolidation loan coming is get the bad marks accurately updated, as CFI or NCSEAA appears to have granted me additional grace periods that I never asked or signed for. When the first date of delinquency is accurate (~8/2002), all 15 of these marks will fall off of my credit reports. (They are all treated as one large account by NCSEAA for billing/payment purposes, so if one was late/defaulted, all 15 were.) I only have these 15 accounts with NCSEAA, all identically reported except for the amounts, so if I'm understanding your concern for updating & adding correctly, I don't think I have anything to worry about.

 

I'm not trying to bluff of BS them here... I just want the information accurate since I will no longer owe NCSEAA. When the information is accurate, it'll obviously greatly benefit me. :)

Edited by dkfd3s
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I was kind of in the same boat with PHEAA and Sallie Mae, never making payments. They eventually defaulted and went to their CA's.

 

I would suggest you do one thing right now....

 

Contact the Lenders (whom might say to contact their CA's) and set up a rehabilitation plan. Immediately get yourself in their good graces again. After 9 months those tradelines will clear up on your reports and your scores will go back up. But believe me.... you need to be proactive with your SL's. They are not like CC CA's and you just sit back and do nothing. They will garnish your pay (PHEAA garnished and then Sallie Mae threatened to do the same) so they will get their money in some way.

 

I agree with the above posters. I would not send letters to the CRA's. I doubt you will get anything accomplished by doing so. You will want to clean this up as best you can and as fast as you can.

 

Set up a rehab plan for nine months (goes by before you know it) and after you are done you can consolidate your loans into a single TL.

 

Best of luck!

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Thank you guys for the replies, but I don't think any of you have really read my entire posts.

 

*I have a consolidation loan in process for all of these loans. Rehabbing is not necessary because my debt with this lender will be satisfied.

*These marks are scheduled to be removed in May 2010 per the 7 year clock, I'd just like them off sooner because they're inaccurate and should already be gone.

*I can prove they're inaccurate, but I wanted a little advice on plan of attack.

*I wouldn't be messing with this if I still owned the lender with the bad marks on my credit reports any money -- I know better than that.

 

I didn't ask on the Student Loans forum because while this is more of a credit reporting issue than an actual student loan issue.

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  • 1 month later...

HOT UPDATE: I sent out a 5 page packet to the big 3 CRAs on Dec 14.

 

I received an investigation results letter from TU today dated Dec 18.

 

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE

DELETE (all 15 of them)

 

A little early Christmas present to me... The only baddie I have left on TU is a 60 day late pay in 03/2003, which has been verified but will kick the bucket in 3 months. (Talk about a score bump??!)

 

Let's hope EX & EQ follow suit!

Edited by dkfd3s
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Wait, they deleted the lates, but you still owe?

Apparently. Which will be paid by the consolidation. Hopefully the OP will keep up the payments.

 

However, for your information, just because you graduated in Dec 2001, your loans didn't come due(if these were federally funded loans) until six months after you gradated. So the dates sound about right, if you count after December, your DOFD was May, 2002.

Edited by beli
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Wait, they deleted the lates, but you still owe?

Apparently. Which will be paid by the consolidation. Hopefully the OP will keep up the payments.

 

However, for your information, just because you graduated in Dec 2001, your loans didn't come due(if these were federally funded loans) until six months after you gradated. So the dates sound about right, if you count after December, your DOFD was May, 2002.

Well that was my whole point of doing this -- the DOFD was incorrect. My DOFD should have been July/Aug 2002, instead of May 2003, as was being reported by the projected delete date of May 2010.

 

Yes, I've obtained a consolidation loan and I won't have a problem keeping up on payments. I just found this obvious error that I could attack now that the CA no longer has a claim on me... and who wouldn't want 15 baddies deleted 5 months early?

 

My once well-off parents obliterated my stellar credit behind my back while I was in school, adding themselves to my accounts, signing me up for new ones and piggybacking themselves as joint, etc. It all went bad and it was all way too messed up by the time I found out about it. I hid from the world for a few years and thankfully I was never sued. I've lost my 20s trying to dig out of this mess. I was denied at least a dozen jobs in my sector because of my credit, so I've worked for restaurants. (At least in L.A. they just think I'm an actor so I don't get a ton of the "Are you in school?" and "You're so intelligent, what do you want to do?" which make me feel too self-reflective.) I always intended to repay my student loans, but I was so afraid of everything 9 years ago and so much shame and rejection came along that I never deserved, I had times when I didn't understand the point of living because I wasn't living and this wasn't my life anymore.

 

It's almost done now... And in the end I'm a different & better person because of it with a new vision for my life.

Edited by dkfd3s
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Why should it be June/July 2002 instead of May? You never paid on the student loans you didn't have any type of forbearance out. DOFD starts the month you were late and didn't make the account current, in this case 6months after graduation.

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Why should it be June/July 2002 instead of May? You never paid on the student loans you didn't have any type of forbearance out. DOFD starts the month you were late and didn't make the account current, in this case 6months after graduation.

Right... 6 months. So my graduation date per UNC was Dec 31 2001. 6 months later -- June 2002 -- I should get a bill. (May is 5 months from December, this is where your confusion is... and the CA was reporting May 2003 as my DOFD.) I'm not sure if it would be due exactly 6 months post graduation (on June 30 2002) or be billed that date and due a few weeks later, sometime in July. I figure either way, I was definitely 100% late by August 2002, so DOFD at the latest is Aug 2002 and the lines should have been deleted by Aug 2009.

 

That's why I disputed it.

Edited by dkfd3s
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NCSEAA was your guarantor. When a SL goes into default, the guarantor begins reporting (after they pay the claim to the lender) and continues to report for 7 years from the time they paid the claim which, in your case, would have been roughly May 2003. (Graduation date + grace period + time to default.) Based on what you've said, I don't believe anything was reporting inaccurately. If you'd posted in the SL forum, someone would have told you that much sooner. It's been said here time and time again: Federal student loans are completely different from any other consumer debt.

 

In any case, congrats on getting them removed a little early.

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LOL... I received a response from Experian today that said, "We received a suspicious request regarding your personal credit information that we have determined was not sent by you."

 

They received the exact same 5-page packet of info that TU did regarding this, including a page verifying my identity which included my CA DL (indicating previous address, DOB, full name... everything they ask for) and a statement from my bank account of payments to my credit cards (so they could easily cross-check my access to my own finances).

 

Of course, I won't be able to get anyone on the phone until Monday.

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I made this particular post in the Student Loans sub-forum, but I'm also going to post it here since it is a reporting issue.

 

Today, I get a myfico alert that my EQ report has some updates and my score dropped from 590 to 542. It looks like they're launched my investigation, but instead of these defaulted loans reporting with no late pays (because they're defaulted, I guess?), they're reporting with 30 90+ day lates. These loans defaulted in June 2004.

 

Here's one of the loans (they all look like this)...

 

Before (EQ 590 on 12/22)...

 

EQ590.jpg

 

Today (EQ 542)...

 

EQ542.jpg

 

Is this just temporary because the file was molested for investigation??

 

Say it stays like this... Is this proper for a defaulted loan?

 

What do I need to do?!?

 

Yikes!!

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I've read through all of your post and I do understand what you are saying. As far as your last post... the way that it is now reporting, with the 120 day lates, is the way that it should have been reporting before; you were benefiting from your file being somewhat "overlooked" and this is "proper" for a loan in default. Now that you asked them to investigate it, they fixed it to report "correctly" (in terms of the lates, not the DOFD). There is a 50/50 chance that they delete and it goes away at the end of their investigation or you may have to wait for them to fall off in a couple of months when they are "supposed" to (according to the current, albeit possibly incorrect, DOFD). Hopefully they delete in your favor. Best of luck.

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I've read through all of your post and I do understand what you are saying. As far as your last post... the way that it is now reporting, with the 120 day lates, is the way that it should have been reporting before; you were benefiting from your file being somewhat "overlooked" and this is "proper" for a loan in default. Now that you asked them to investigate it, they fixed it to report "correctly" (in terms of the lates, not the DOFD). There is a 50/50 chance that they delete and it goes away at the end of their investigation or you may have to wait for them to fall off in a couple of months when they are "supposed" to (according to the current, albeit possibly incorrect, DOFD). Hopefully they delete in your favor. Best of luck.

Thanks for your reply and doing all of that reading. I know it's a mound!

 

Alright, so yeah I hope it gets the early delete. If it is somehow verified (even after TransUnion deleted it) then I guess my other option is to send NCSEAA a love letter and ask them to "correct" the file themselves since TransUnion corrected it appropriately.

 

I'm afraid of such a dramatic drop causing adverse effects on my existing credit cards. Granted, I don't have much, but I'd been purposefully running a very high utilization until these things fall off just so that I don't get balance-chased in this credit climate while I wait for the massive bump that'll come once those baddies fall off. Yes, all of my interest rates were recently jacked to the 25-30% range like many Americans (and would've been regardless of my UTIL b/c of these SLs), but this is a marathon and if I let my $1500 WaMu/Chase card get balance chased then I won't have another card over $750 and that's tough to climb out of.

 

As it stands, I'm calling Barclays on Monday to get a recon for their Virgin America card because they pull TU.

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