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Finn5906

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I am preparing to refinance my student loans, and want to ensure my credit is in the best shape possible before applying. My credit utilization is between 10-15%; however, I have late payments on my account that I feel may be unjust, and I'm seeking advice from individuals who have gotten negative items removed to see if you think I am eligible to do the same.

 

In July of 2017, one of my small student loan services changed carriers to Heartland ECSI. The payment was roughly $35 per month, but when the loan changed hands my automatic payments stopped as well. This resulted in my payment being 3 months late (the first 3 months the new loan went into effect). I did not actively change the loan to another company, this was done between the two companies.

 

To put this in perspective, I pay roughly $2000 per month in student loans and my annual income is between $120,000-$130,000; so it's frustrating that such a small payment is making such a negative impact. I'd like to hear if anyone has similar experiences and if you think I have a chance to get this removed. I greatly appreciate any input!

Edited by Finn5906
grammar error

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On ‎2‎/‎8‎/‎2019 at 5:30 PM, Finn5906 said:

I am preparing to refinance my student loans, and want to ensure my credit is in the best shape possible before applying. My credit utilization is between 10-15%; however, I have late payments on my account that I feel may be unjust, and I'm seeking advice from individuals who have gotten negative items removed to see if you think I am eligible to do the same.

 

In July of 2017, one of my small student loan services changed carriers to Heartland ECSI. The payment was roughly $35 per month, but when the loan changed hands my automatic payments stopped as well. This resulted in my payment being 3 months late (the first 3 months the new loan went into effect). I did not actively change the loan to another company, this was done between the two companies.

 

To put this in perspective, I pay roughly $2000 per month in student loans and my annual income is between $120,000-$130,000; so it's frustrating that such a small payment is making such a negative impact. I'd like to hear if anyone has similar experiences and if you think I have a chance to get this removed. I greatly appreciate any input!

You should have been notified that the student loan note had been transferred. And they should have made payment arrangement changes at that time.

 

What happened? You should have gotten notice of the change and received bills from the new owner. Did that happen? Did you not notice payments were not being taken out? Depending on the situation you might have a claim or at a minimum, a reasonable basis for a good will removal.

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Many aspects of student loans fall into a specialized area of credit, which is well outside the boundaries of my expertise (along with most types of manual labor, and baseball statistics).

 

This page might be helpful:  https://studentaid.ed.gov/sa/repay-loans/default/get-out, but it also might not.  In the latter case you might read/post in the Student Loan Forum for help with your specific issue.

 

Good luck, and welcome.  :wave:

 

Also... and this is meant constructively:  It is not unjust to have late payments reported when you didn't ensure that the payments were made on time.  Autopay is a convenience, not an alibi.  This is true for all types of credit, so watch all of your accounts closely to make sure you are meeting every obligation, every single month.

 

 

Edited by cv91915

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31 minutes ago, cv91915 said:

...

 

Also... and this is meant constructively:  It is not unjust to have late payments reported when you didn't ensure that the payments were made on time.  Autopay is a convenience, not an alibi.  This is true for all types of credit, so watch all of your accounts closely to make sure you are meeting every obligation, every single month.

 

 

 

Actually, that is false.  It not only is unjust, but it can be a breach of contract.

 

If my credit card company offers to automatically deduct payment every month from a certain account and they fail, through no fault of my own or the external account bank, they have breached the agreement.  The fact that your card issuer generally initiates the deduction one day before the payment due date makes it pretty stupid to suggest you are responsible to make sure the payment was accomplished.  If the credit card company's actions caused you harm / financial distress, they are liable to notify you.

 

Credit card alerts are a different story.  And even then.   

 

I have actually seen a case, using one of the lawyers often recommended here on CB, where the cardholder sued and won.  I have seen a second case where the cardholder's attorney sent a nice -- well, actually, not so nice -- little letter and the credit card company capitulated.   

 

 

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20 minutes ago, PotO said:

 

Actually, that is false.  It not only is unjust, but it can be a breach of contract.

 

If my credit card company offers to automatically deduct payment every month from a certain account and they fail, through no fault of my own or the external account bank, they have breached the agreement.  The fact that your card issuer generally initiates the deduction one day before the payment due date makes it pretty stupid to suggest you are responsible to make sure the payment was accomplished.  If the credit card company's actions caused you harm / financial distress, they are liable to notify you.

 

Credit card alerts are a different story.  And even then.   

 

I have actually seen a case, using one of the lawyers often recommended here on CB, where the cardholder sued and won.  I have seen a second case where the cardholder's attorney sent a nice -- well, actually, not so nice -- little letter and the credit card company capitulated.   

 

 

This student loan changed servicers and OP didn't set up autopay with the new servicer.  

 

Was there proper notification?  Not enough info in the post.

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23 minutes ago, cv91915 said:

This student loan changed servicers and OP didn't set up autopay with the new servicer.  

 

Was there proper notification?  Not enough info in the post.

 

Perhaps.

 

If one was notified of a chance in service providers, it could be an issue.  Or it could not.  I'm not even convinced it isn't reasonable to expect that autopay will remain in effect unless a positive effort is made to notify me otherwise.  Nationwide just went out of the credit card business and my new creditor is Merrick.  When I went to check, my autopay was still in effect.  

 

In any event, the new entity that acquires the account also acquires the legal obligations and liabilities in effect.  Unless he was notified and, specifically warned about the autopay issue, I'd bet he'd have a decent chance at clobbering them.  

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