I have a negative TL on my EQ and TU (not EX) from back in 2011 when my Direct Loans were in really rough shape (120+ behind). TU shows current status as “In collection” and EQ leaves the current status blank. The accounts were turned over to a CA with whom I did a loan rehab. After the rehab, the loans were picked up by FedLoan Servicing. FedLoan reports the loans as in good standing and never late to all three bureaus. I have a letter from the CA stating the rehab was completed successfully and I had no further business with them. I also received a letter from the DOE that all loans were rehabilitated and made satisfactory.
The negative TL dates from 03/11 and has not been updated since.
The CA is not reporting at all and I don't know if they ever did. It was my understanding that all records of the loans being delinquent would be removed once rehab was completed. I called the CA who confirmed that and said they had removed all negative records. CA was very helpful, but said they couldn’t do anything about the TL since it wasn’t theirs (fair enough) and gave me a number to call for Direct Loans. DL simply said that they are not currently reporting and that there shouldn’t be anything on my reports. As I was expecting, he was unable to help since they had not reported on it in 3 years.
DL also reported the 6 individual loans as one lump sum on this TL, but during and after the rehab, they are still the separate loans they were originally. I currently pay them as 6 separate loans and they report as 6 seperate TL's now.
So my question is this: I’d like to get these off my reports (obviously) as EQ and TU are significantly lower than my EX and this TL is the only difference. Does anybody have any experience with this type of situation? Do I GW DL? Or do I dispute with the CRA given DLand CA reps told me it shouldn’t be there as far as they knew? I’ve seen somewhat similar threads, but nothing just like this. If anyone has a link, please let me know.
These are also my oldest TL’s, so would removal hurt my AAoA? Given how much better my EX score is, I assume they are hurting more than the age of account is helping.
Thanks all!
@hahayepyep wrote:I have a negative TL on my EQ and TU (not EX) from back in 2011 when my Direct Loans were in really rough shape (120+ behind). TU shows current status as “In collection” and EQ leaves the current status blank. The accounts were turned over to a CA with whom I did a loan rehab. After the rehab, the loans were picked up by FedLoan Servicing. FedLoan reports the loans as in good standing and never late to all three bureaus. I have a letter from the CA stating the rehab was completed successfully and I had no further business with them. I also received a letter from the DOE that all loans were rehabilitated and made satisfactory.
The negative TL dates from 03/11 and has not been updated since.
The CA is not reporting at all and I don't know if they ever did. It was my understanding that all records of the loans being delinquent would be removed once rehab was completed. I called the CA who confirmed that and said they had removed all negative records. CA was very helpful, but said they couldn’t do anything about the TL since it wasn’t theirs (fair enough) and gave me a number to call for Direct Loans. DL simply said that they are not currently reporting and that there shouldn’t be anything on my reports. As I was expecting, he was unable to help since they had not reported on it in 3 years.
DL also reported the 6 individual loans as one lump sum on this TL, but during and after the rehab, they are still the separate loans they were originally. I currently pay them as 6 separate loans and they report as 6 seperate TL's now.
So my question is this: I’d like to get these off my reports (obviously) as EQ and TU are significantly lower than my EX and this TL is the only difference. Does anybody have any experience with this type of situation? Do I GW DL? Or do I dispute with the CRA given DLand CA reps told me it shouldn’t be there as far as they knew? I’ve seen somewhat similar threads, but nothing just like this. If anyone has a link, please let me know.
These are also my oldest TL’s, so would removal hurt my AAoA? Given how much better my EX score is, I assume they are hurting more than the age of account is helping.
Thanks all!
This is the part of the rehab process that varies widely and is somewhat of a gray area. Some folks have seen a deletion of the original TLs and some have just seen the default notation removed and the negative payment history remaining. Some of the rehab servicers tell you that the original TLs will automatically deleted, some don't promise anything other than new TLs being opened by the new servicer when your loans are picked up out of rehab.
I had 3 TLs from US Dept Ed/Direct Loans that were defaulted. After rehab they showed closed, $0 balance, but 2 of the 3 CRAs had their current status listed as "120 Days Past Due". Two new TLs showed up from Nelnet for the rehabbed loans dated back to Feb 2011 (when the original TLs were opened) and a payment history showed up from April 2013 forward (no earlier payment history reported).
Recently, I sought to get the 2 CRAs to update the current status 120 Days Past Due to reflect a Paid. Closed status. One of the CRAs notified me that they were deleting the 3 original TLs from my report and they have. It's unclear whether this was at the request of US Dept Ed/Direct Loans or that they just could not be verified so the jury is still out if it will result in deletion from all 3 CRAs.
As I said, YMMV. You might want to read through the rehab thread in the Student Loan forum here to see what other people's results have been.
Current Score: TU: 674 | EQ: 722 | EX: 717 | Last Inq. 2/16/15...Locked Up in The GardenI called the CA and DOE one more time to reconfirm that the accounts were not supposed to be reporting negatively. They both said the same thing as before: the accounts were rehabbed and should not be reporting negatively. So, I sent a dispute to EQ and submitted the letter from the DOE as support. Two days later I recieved the results saying that both TL's were being deleted!
I'll do the same with TU next and see what happens.
TU deleted in less than 24 hours via online dispute.
Evidently, it was as simple as that for me.
Just hit the Easy button, congrats.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.