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How to Dispute Re-Aged Private Student Loans?


haytertots2004
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The last post in this topic was posted 3705 days ago. 

 

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Hello,

 

I have a big problem I hope someone can help me with.

 

When I was in college I took out 2 private institutional loans through my university, one in 1997 for $1000 and one in 2000 for $7000. I graduated in 2002, and immediately consolidated all my federally-subsidized loans. I have been paying on them ever since, and have never missed a payment. However, I moved around a lot after graduation, and didn't learn until a year later that the two private student loans were not included in the consolidation ( I've since looked at my promisory notes, and there is no federal guarantee on these loans. I also checked with the National Student Loan Database, and they are not listed in my file of federal student loans). By the time I found out, the university had turned them over to a collection agency, which doubled the balance owed and would not make payment arrangements. I was stuck. The negative reporting sat on my credit report from 5/2003-5/2010, at which point it fell off all my credit reports. I have three old hardcopies of my credit report. In the old reports, the loans are reported as follows:

 

XXXX University

Acct # XXXXXX

Date Opened: 5/2000

Date of Status: 12/2004

Date Reported: 12/2004

Last Reported: 12/2008

Type: Installment

Terms: 120 months

Monthly Payment: N/A

Responsibility: Individual

Credit Limit: $2165

Recent Balance: $4499 as of 12/08

Status: Collection Account, $4499 past due as of Dec 2008

Collection Account as of 5/2005

This account is scheduled to continue on record until May, 2010

 

Fast forward several yeats. In April, 2013, the student loans appeared on my credit report as a "charge-off, 0 balance, date of charge-off 3/12/12". This just dropped my fico score from 720 to 612 overnight! The new reporting is as follows:

 

xxxx University

Acct #xxxxxxx

Date Opened: 5/2000

Type: Installment

Terms: 120 months

Monthly Payment: N/A

Responsibility: Individual

Credit Limit: $2165

Date of 1st Delinquency: 7/2003

Date Maj. Deficiency Reported: 4/2013

Items as of Date Reported: 1/28/2014

Status: Charge-off

This account is scheduled to continue on record until 4/2020

 

Clearly the date of major deficiency was changed by the creditor so they could re-age the accounts and report them to the credit bureaus. I disputed the accounts with the credit bureaus, indicating that these loans were beyond the 7.5 year reporting limit. I included current copies of my credit report, as well as old copies of reports which verified true date of first delinquency. Transunion and Experian deleted them from my file. However Equifax refused to delete. Equifax's response to my dispute was, "There is no historical account information currently on this account. The date of last activity has been updated. The last payment date and date closed are reporting correctly. The prior payment history and status are reporting correctly. Additional information has been provided from the original source regarding this item."

 

My questions, then, are the following:

 

1. Is the creditor allowed to change the date of major deficiency at their own will, with no action taken on my part (I would assume no)?

2. Does a charge-off date of 10 years after the first deficiency constitute a new date of deficiency, and therefore restart the reporting period (as the University is trying to claim)?

2. How do I convince Equifax that the accounts were re-aged and must be deleted, when I've already disputed this fact with them, and they refused to delete?

 

Thanks everyone. I look forward to all your replies.

 

:-)

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Anyone have a sample letter to send to Equifax, or help citing the legal statues involved here? I know the reporting is regulated by the FTC Section 605, but I already cited this in my first letter to Equifax, which they clearly ignored. I'd like to send them a letter that asks for immediate deletion of the two re-aged accounts, or I will file a complaint with the CFPB & file suit. Do you think I can do this on my own, or should I hire an attorney? (Sorry if I am all over the place here, but we really need this taken care of asap as we are applying for a mortgage this spring & I want these gone).

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Equifax seem to be real jerks about student loans. I continually see them giving people problems with legitimate disputes regarding them, all across the board.

 

I am currently battling them to appopriately report my payment history which they have apparently verified with the loan servicer. What reports on EQ vs EX and TU are completely different.

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I had two student loans that were re-aged and put back on my credit report. I disputed the TL's with all three CRA's. Experian took both off immediately. Transunion took one off and Equifax stripped all of the information off the account and changed the status to UNKNOWN.

 

After numerous letters to EQ and TU without a result, I hired a lawyer. I did this before CFPB was active and responding to consumer complaints.

 

The lawyer got a settlement with TU and EQ for violating the SOL on reporting the TL's. Basically they admitted to re-aging although they did not come out and say it.

 

EQ was by far the toughest - they dragged it out forever. The lawyer had to file a lawsuit to get them to respond. And even then they took their time.

 

My lawyer tells me not to read into the motives of EQ or any other CRA. He says they are not taking a sanctimonious position on private student loan debt. Most of the time they are just disorganized or incompetent.

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Success!! Just two days after filing the CFPB complaint, the items were removed by Equifax. Scores up 80 points!

 

Of course, Equifax's comments were "Currently, the two disputed xxxxx University accounts are not reporting on the file. Written confirmation was mailed to the address on file." Seems like they removed it without coming out and saying they had re-aged them. Still, a quick deletion, none the less.

 

Shifter, thank you so much for your advice, seems like filing a complaint with the CFPB saved me a lot of time and headache!

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