Student Loan Delinquent- Deferment back dating

[DCY030]

Greeting Everyone,

 

I am a new member. I want to thank all of you for your sincere efforts and guidance. Devoting time to help others is actually a best good some could offer. Thank you all.

 

Now about me.

 

I am working to clean up my credit. I have a student loan that is currently under deferment until 02/2016. Back in 2014, When it went to repayment phase, I was overseas. By the time I cam back in Aug 2014, the loan was already 180 Days late. I applied for Econ Harship that was granted and back dated to Feb 2014(The original date when the repayment was due). I have recently noticed that it is being reported to my Credit File as 180 days late despite Econ Hardship Deferment back dating.I disputed with the CRA but it came back as "updated" with same late data.

 

I think my question is how I can resolve this with the CRA. The OC does not seems to understand that Econ deferment means as if the loan is being paid as agreed, and unwilling to report a removal of late status. My understanding is that when deferment is back dated it reads as no default has been occurred and loan is being paid as agreed. Is it possible that contest it of justify it through precedents are legal aspects. I may be misunderstanding. Please help me.

[hodap2001]

Why were you overseas and why were you late or chose to ignore the debt? Your response will allow me to give you a better answer.

[DCY030]

I was a contractual interpreter for DoD back then deployed to war zone. When I got back, it was already reported late. I was under the impression that just as Stafford, it has a longer grace period. I have cited the Advisory at;

 

http://www.ftc.gov/policy/advisory-opinions/advisory-opinion-harris-03-22-99

 

In addition to this, I have submitted deferment letter from Servicer and the Grantor Institution but they said this documentation is not sufficient. I will now constrain the CRA by clause and subjective language at FCRA. I believe an investigation or reinvestigation of the fact that "the information" is inaccurate as of the time of your dispute may trigger the statutory obligation of CRA or OC to validate its accuracy when supported by a deferment backdated documentation.

[hodap2001]

Most of the credit bureau reporting requirements are governed by the Fair Credit Reporting Act, not the Higher Education Act of 1965 as amended nor the Federal Trade Commission. It is my understanding that lenders/servicers are not required or obligated to retract prior credit bureau reporting of a delinquency in cases where the borrower is given the opportunity to “cure” their delinquency with a deferment; however, they can at their own discretion if the borrower provide satisfactory documentation to prove the borrower was not late. Do you have any documentation to prove that you were not late, i.e. payments, active deferment or forbearance, military deployment orders, etc. If not, then they will not change the reporting requirements.

 

You can try writing a good will letter; however, they are not obligated nor required to retract prior credit bureau reporting if it is accurate and based upon the limited information you provided, it appears to be accurate reporting.

 

Do you have any type of documentation to prove that you were not late during the reported time-period???

[DCY030]

Thank you for your reply. I did have enough documentation that proves that it was not intentional to get late on payments. On the other note, I was able to have it back dated on my Credit Files using the a portion of the Advisory Opinion legal text along with deferment letters. They said I will be receiving an updated Credit Report in five business days.

 

I will update new developments here on this thread once I receive updated Credit Reports. Thank again.

[hodap2001]

I would be interested to know if that advisory opinion has any merit in retracting the delinquencies as the deferment was used to cure the account or bring it current.

 

Yes, please keep me updated.

[DCY030]

Hello Fellas,

 

Last week, I was here seeking help to untangle few late reporting on student loans. Happy to report that those delinquencies have been retracted using Advisory Opinion, Deferment letter along with a letter indicating Servicer's current practice on reporting backdated deferment covering delinquencies.

 

Both Accounts had May 2013, June, July,Aug and Sept respectively 30,60,90,120,150, and 180 days late.

 

Sorry, tried to upload a fresh look by copy and paste thing but did not quite work.

Edited January 13, 2015 by Fred030

[hodap2001]

In the words of MarvBear... Coooooooooooooonnnnnnnnngrats!!

 

That is good news and may give some hope to others on the student loan forum board.

[DCY030]

"In the words of MarvBear... Coooooooooooooonnnnnnnnngrats!!"

Exactly!

It was much harder to deal with evil Experian. While the work is not done yet, I can now sit in the snow and have a beer.

[hodap2001]

[cassett]

wow that is great news. I am also seeking to use this method to remove my lates that where in deferment. Think we could see the letter you used?