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StarOfOrion

American Education Services

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I have a private student loan opened in 2008. The original creditor was Student Loan Xpress. Back in 2016 AES contacted me for repayment. I asked for an extension or deferment since I was still in school and they promised to get back with me. They went silent ad it slipped my mind to follow up. Then all the sudden in 2017 the account popped up on my credit report as charged off

 I’m now being denied Grad Plus loan citing “Account In Collection Defaulted Loan Which Has Been Claim Paid”. I found this on them. Attached is what’s being reported with Experian after I disputed the account. 

 

What should be my next move?

Screen Shot 2018-12-01 at 8.52.39 AM.png

Screen Shot 2018-12-01 at 8.53.06 AM.png

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What is the actual DOFD on this account (this would be the most recent time your account went 30 days late and was never brought current)?

Edited by cv91915

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Two wrongs don't make a right...you were aware that they were seeking repayment.  You never followed up until such time as that lack of follow-up presented itself as a detriment. 

 

Being a private loan as opposed to a federal loan, I am curious what 'claim' was paid as this is not the same as walking a federally-guaranteed loan.  But as CB aptly notes, there are a number of pieces to the puzzle that are missing...

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1 hour ago, cv91915 said:

What is the actual DOFD on this account (this would be the most recent time your account went 30 days late and was never brought current)?

Based on the CR, I would say June, 2017, because they reported 60 on July, 2017.

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21 hours ago, StarOfOrion said:

Based on the CR, I would say June, 2017, because they reported 60 on July, 2017.

If you are trusting what appears to be third-party records provision, then you have lost the war before you even set foot on the battlefield.  NEVER rely on anything other than paper reports directly from the bureau...and when it comes to defaulted debt, you REALLY should be looking at what you have in your file cabinet for the account documentation...

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21 hours ago, StarOfOrion said:

Based on the CR, I would say June, 2017, because they reported 60 on July, 2017.

Does that match your records?  

 

How does an account go from being in good standing ("OK") to 60 days late in one month?  

 

The way I read your original post, it seemed that you hadn't made a payment since 2008, or at least for a long time.  Did you do nothing and forget about it in 2016, as your first post suggests, or did you actually make payments in 2016 and/or 2017?  Look at your actual records.

 

I agree that it's time to get your actual hard-copy credit reports and compare what's reporting to what really occurred.
 

 

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I have never paid on this account. I also noticed the 60 late jump. There's really no paper trail except a few emails they sent for bill reminders. They strange thing is when I login to the account online it shows defaulted under the status, but under loan details it indicates:

 

"This loan is no longer being serviced by AES as of (Sept., 16/17)Any further instructions will be provided by the agency servicing this loan.". Yet they keep reporting on it.

 

How can dispute this and with whom (CB or CA)? 

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16 minutes ago, StarOfOrion said:

Are these different from the ones delivered online? Please forgive my ignorance, kinda new to this.

Yes they are different, especially for the purposes of trying to dispute and correct information.

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On 12/22/2018 at 12:09 PM, StarOfOrion said:

Finally, received the reports from Eq. & Exp (TU needed poof of ID). 

 

Here are the copies

 

Happy Holidays everyone!

From the Equifax report is appears that the loan was in deferment until April 2017, and then the payments kicked in (but were never made).  

 

That 60 still doesn't make sense, unless there is some quirk with SLs that I am not aware of where they do not report the first 30-day late.   

 

From the Experian report is appears that there was a scheduled payment amount before April 2017. 

 

Which is correct?  

 

Does anyone else see anything different?

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On 12/28/2018 at 5:13 PM, cv91915 said:

From the Equifax report is appears that the loan was in deferment until April 2017, and then the payments kicked in (but were never made).  

 

That 60 still doesn't make sense, unless there is some quirk with SLs that I am not aware of where they do not report the first 30-day late.   

 

From the Experian report is appears that there was a scheduled payment amount before April 2017. 

 

Which is correct?  

 

Does anyone else see anything different?

Yes, I'm also puzzled by these! Now, what my best course of action?

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On 12/28/2018 at 5:13 PM, cv91915 said:

From the Equifax report is appears that the loan was in deferment until April 2017, and then the payments kicked in (but were never made).  

 

That 60 still doesn't make sense, unless there is some quirk with SLs that I am not aware of where they do not report the first 30-day late.   

 

From the Experian report is appears that there was a scheduled payment amount before April 2017. 

 

Which is correct?  

 

Does anyone else see anything different?

 

22 hours ago, StarOfOrion said:

Yes, I'm also puzzled by these! Now, what my best course of action?

 

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1 hour ago, cv91915 said:

 

 

 

I was on their paperless bill option. Here are the billing emails I received:

 

*First billing email (dated 3/8/2016) for the first payment due on  03/26/2016.

 

*3/23/16: they sent this email:

 

"AES has exhausted all efforts to contact you via email, telephone, 
and postal mail in an effort to resolve your delinquency.

This is your last chance to avoid negative credit reporting!

Additionally, your lender may choose to assign your account to an 
outside collection agency. 

Click the following link to make your full monthly payment 
today
"

 

*4/7/2016 billing email for a bill due on 04/26/2016

.

.

.

.

*5/4/17: Welcome to repayment email. Bill due on 5/24/17

 

*6/6/17 billing email: due on 06/24/2017

 

*7/4/17 billing email: due on 07/24/2017

 

*8/4/17 billing email: due on 08/24/2017.

 

*9/6/17 billing email: due on 09/24/2017

 

Last email:

Payment reminder: bill due on 09/24/2017

 

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49 minutes ago, StarOfOrion said:

Obviously the report raises more questions than answers. Please help me how to go about disputing this account.

I think we need to take a step back.

 

The purpose of disputing is to remove inaccurate information from your credit report.

 

Just because two of your bureaus aren't reporting the TL the same way doesn't help.  An email from the servicer doesn't help. 

 

We need you to determine how this should be reporting based on the terms of your loan agreement.  None of us has access to that.

 

Steps:

 

1 - Establish how the TL should be reporting if it was reporting correctly.*  Look at your loan agreement.

 

2 - Compare how it should be reporting with how it's actually reporting on Equifax.  Identify what is reporting incorrectly and post it in this thread, and you'll get advice on how to dispute this with Equifax.

 

3 - Compare how it should be reporting with how it's actually reporting on Experian.  Identify what is reporting incorrectly and post it in this thread, and you'll get advice on how to dispute this with Experian.

 

* If you aren't sure how it should be reporting, simply state the loan terms in this thread in plain English ("Deferral period ended in MM/YY and I was supposed to begin payments the following month.")

 

 

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12 hours ago, cv91915 said:

I think we need to take a step back.

 

The purpose of disputing is to remove inaccurate information from your credit report.

 

Just because two of your bureaus aren't reporting the TL the same way doesn't help.  An email from the servicer doesn't help. 

 

We need you to determine how this should be reporting based on the terms of your loan agreement.  None of us has access to that.

 

Steps:

 

1 - Establish how the TL should be reporting if it was reporting correctly.*  Look at your loan agreement.

 

2 - Compare how it should be reporting with how it's actually reporting on Equifax.  Identify what is reporting incorrectly and post it in this thread, and you'll get advice on how to dispute this with Equifax.

 

3 - Compare how it should be reporting with how it's actually reporting on Experian.  Identify what is reporting incorrectly and post it in this thread, and you'll get advice on how to dispute this with Experian.

 

* If you aren't sure how it should be reporting, simply state the loan terms in this thread in plain English ("Deferral period ended in MM/YY and I was supposed to begin payments the following month.")

 

 

 I did make a request for a deferment, which was never acknowledged explicitly, yet it was approved according to the billing emails received afterward. I do not have copies of the loan terms or promissory note (lost many documents during a move). But it seems that AES has lost several lawsuits it filed due to lack of paperwork:

http://time.com/money/4862823/private-student-loans-missing-paperwork-lawsuit/

 

These few emails is all what I have. I'm still able to access the account online, but only these screens are shown:

https://1drv.ms/f/s!AnRzbPYsGusahMgZ41k2M-WeBWI7Mg

 

According to the above, AES no longer services the loan, yet it's listed as the OC on the CR and the account was verified when I disputed it (online) with the CB.

 

 

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Posted (edited)

A handful of thoughts/ideas (hopefully others will have more):


1 - (If you haven't already) Do a bunch of reading in the Student Loan Forum.  Part of my reticence in offering other ideas is that beyond the general FCRA requirements which require data that is reporting to be reporting accurately, SLs have a lot of nuances that I don't fully understand...  but there is a forum full of people who know this specialty area.  You could try posting there also (not all of use read every forum). 

 

2 - You could try to dispute these as obsolete (can't report longer than 7 years) , claiming the DOFD was in 2008. 

 

Perhaps the servicer will fail to respond and you can use that as the basis for having the bureaus remove the TL.   

 

This wouldn't be a fact-based dispute, it would be a blind stab, but that doesn't mean you shouldn't try.  

 

Before taking action, understand in advance your rights under the FCRA, including your next moves depending on the outcome of the dispute (force the bureau to remove if you don't get a timely response, ask for a MOV if they do, etc.).  Dispute in writing and have your if/then/else plans ready in advance.

 

Many people end up here after launching unsuccessful general disputes online without an understanding of what is supposed to happen, what to do next, or how to assert their rights when they don't get the right outcome.

 

3 - If you didn't start there before your post, there is a Newbie Forum that covers a wealth of general credit reporting information that it's impossible to cram in its entirety in response to every scenario.  In my urge to jump in and help, I sometimes forget that the inquiring party may not have already exhausted these resources, which are suggested reading for a reason.

 

I am sorry I couldn't get you to a solution, but you aren't at a dead end.  Best of luck.

 

Edited by cv91915

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Posted (edited)
2 hours ago, cv91915 said:

A handful of thoughts/ideas (hopefully others will have more):


1 - (If you haven't already) Do a bunch of reading in the Student Loan Forum.  Part of my reticence in offering other ideas is that beyond the general FCRA requirements which require data that is reporting to be reporting accurately, SLs have a lot of nuances that I don't fully understand...  but there is a forum full of people who know this specialty area.  You could try posting there also (not all of use read every forum). 

 

2 - You could try to dispute these as obsolete (can't report longer than 7 years) , claiming the DOFD was in 2008. 

 

Perhaps the servicer will fail to respond and you can use that as the basis for having the bureaus remove the TL.   

 

This wouldn't be a fact-based dispute, it would be a blind stab, but that doesn't mean you shouldn't try.  

 

Before taking action, understand in advance your rights under the FCRA, including your next moves depending on the outcome of the dispute (force the bureau to remove if you don't get a timely response, ask for a MOV if they do, etc.).  Dispute in writing and have your if/then/else plans ready in advance.

 

Many people end up here after launching unsuccessful general disputes online without an understanding of what is supposed to happen, what to do next, or how to assert their rights when they don't get the right outcome.

 

3 - If you didn't start there before your post, there is a Newbie Forum that covers a wealth of general credit reporting information that it's impossible to cram in its entirety in response to every scenario.  In my urge to jump in and help, I sometimes forget that the inquiring party may not have already exhausted these resources, which are suggested reading for a reason.

 

I am sorry I couldn't get you to a solution, but you aren't at a dead end.  Best of luck.

 

Thanks a lot. It's a start. Unfortunately, most relevant posts are outdated and I wasn't able to come across anything similar.

Regarding the online vs. written dispute, is it true that it doesn't really make no difference anymore?

https://rebuildcreditscores.com/how-to-request-method-of-verification-for-verified-disputes/

Edited by StarOfOrion

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