Yea i was excited by the stories here of the lates being removed but I was told by my servicer that they will not remove the lates. My SLs were never sold. Only placed in collections and now that rehab is finished they have been taken back from collections and are with the original servicer. I called to ask what will happen with my CR. I understand that they will not remove the lates. But my question (which the rep couldn't answer) is, right now, the last activity on that TL is 120 days late from 5/2008 so what are they going to do with that TL when I start making current payments to the servicer again, post rehab? There is a 5 year gap between the last reported activity and the next payment. Will that TL stay as is and they will report a new TL? I'm so confused.
Starting Score: FAKOs EQ 537 TU 497 EX 517
@guiness56 wrote:I believe the old TL will stay as is and a new TL will be added. I could be wrong because it was not sold and stayed with the origninal servicer.
I don't see the point in removing the default if they don't remove the lates associated with that default. A 120 day late is scored about the same as a collection or a CO. The only good thing is it will be 5 years old.
I could not agree more! Not just scored the same, but looks the same to someone reviewing a report. If an installment loan has 11 consecutive "120 days past due"s and then nothing else. Isn't common sense that the account was CO or defaulted?
I defaulted on the loan so I'm not complaining about all of that. What bothers me about it is the promises made when getting you to agree to the loan rehab. Like, please don't mislead me into thinking that you are going to remove the negative information from my CR.
@RobertEG wrote:Any lates, the reporting of a charge-off, or a collection, stand as prior facts of account history. Subsequent derogs, or even satisfaction of the debt, does not make prior reporting inaccurate.
Current status of the OC account would reflect the snapshot status of the last reported derog action taken. It could have been a CO, after which they discontinued billing, or it could have been a 120-late if billing continued after the CO, and that billing was not timely paid, or it could be a referral for collection. Which is worse for FICO scoring is kinda hard to answer, but all are detrimental in a manual review, as they show progressive actions to obtain satisfaction of the debt.
Current status is simply a snaphot of the current reported derog status. All ot the prior reporting is retained under their own codes, and thus it is really simply a matter of which cubby the derogs are now residing, not their removal. If the debt is then paid, the current status is no longer a derog status. It shifts to paid or pays as agreed, and the prior derog status is retained and shifted over to the Payment Rating code of highest prior reported derog, and of course all derogs are retained under the Payment History monthly cubbies.
You can certainly dispute the current status. However, that wont result in the deletion of any of the prior derogatory reporting. They accurately reflect the account history.
While I appreciate your help in this and other threads, I find it hard to understand you. To be frank, you are about as easy to understand as the legal language my rehab agreement was written in.
I am not disputing the accuracy of the reporting. My frustration is that I feel as though I was led to believe that completing the rehab would result in a reversal of the derogatory reporting of this account to my credit report. If upon completion of the rehab, the TL continues to reflect 11 months of 120 days late then in my opinion the negative reporting has not been removed whether they remove the collection TL or not. Point blank, I believe it is a crime that these CAs and loan servicers can promise to remove negative reporting and not have to follow through and do so. If they are only promising and obligated to remove the secondary collection TL then they should be required to make that absolutely clear in all communication with you before you enter into the rehab agreement. For example, my rehab agreement states, "Upon rehabilitation, the major national credit bureaus will be notified to delete any adverse credit rating being reported by the guaranty agency, American Education Services (AES), in relation to your default." I believe they should be required to continue that statement to note that this only applies to the secondary "collection account" TL and that the original TL with 11 straight months of "120 days late" leading up to default will not be removed or changed. They should also be required to make sure that all of their in house CSRs and the CA collecting on their behalf should understand completely the details of this so that at no point along the way can you be misled to believe differently based on someone's ignorance, if not by outright fraud.
All that being said, I'm not going to worry about it for now. I'm just going to make my payments and be patient to see what happens when AES begins reporting current again.
In addition, I believe I read on the PHEAA website that a loan can not be considered default until it has reached 270 days delinquent. So then in my opinion, once defaulted, that default should be dated for the DoFD, that is the date in which you first became late and never brought it current again. So, deletion of any adverse reporting in relation to the default should include the 270 days of lates leading up to that loan defaulting.
