Salle Mae Student Loan Charge Off, Please Help!!

[Boragard]

Hey everybody! 

I hope everyone is having a restful Sunday.  I am writing in regards to a Sallie Mae Student loan acquired back in 2005.  I will try to make this as short as possible, but it may end up being long...

I'm 29, live in Chicago, IL.  Attended school down in New Orleans, LA at the time of Hurricane Katrina in 2005. After Katrina came back to Chicago and enrolled in another University in October 2005, I acquired a student loan from Sallie Mae entitled "Signature Hurricane Relief Loan" for $1000.  To help students displaced by hurricane Katrina. 

Fast forward 9 years...

In 2012, After 7 years of negative reporting on my credit reports I've disputed to have it removed, Equifax was the only one to remove it.  The charge off still remains on TransUnion and Experian .  In September of 2014, I sent a letter to Equifax , Experian , TransUnion , Sallie Mae, and the Federal Trade Commission.  At the time of dispute it was removed from all credit reports but brought back on Experian & TransUnion .  The Federal Trade Commission forwarded my letter to the Consumer Financial Protection Bureau to get answers.  They investigated, and now i'm back to where I started.  The only difference is now on my credit reports it now shows as a CURRENT charge off still as of 2013 with a balance of $1285 for both TU and EX.

I have disputed this numerous times with Experian to the fact they said they will no longer look at this account without new information.  Since the investigation is now over with the bureaus and CFPB I decided to call Sallie Mae back.  They told me my charged off account is now with a company now called Navient and to write another letter to them and the credit bureaus again. 

A little info I know about the loan:  Loan was obtained back in October 2005, I made one payment in July 2006, I was still in college.  It went to collections, DOFD is August 2006.

I recently stumbled upon some old Credit Reports from Credit Karma that could be earth-shattering, hopefully!!  The report was from January 2011.  It was my very first pull on that website.  I did not know they kept old reports until now.  But here is what is contains: 

January 2006- April 2008  Ok status

May 2008  60 day late                   

June 2008- April 2010 No status update

May-July 2010 Ok status

August 2010 60 day late

September 2010 90 day late

October-November 2010 120 day late

February 28, 2011 charged off

March 2011-March 2013 No reporting

March 2013- Present.  Current Charge off reporting

Scores are as follows as of November 2014 :

Equifax 749 Due to removal of CO from CR

Experian  673

TransUnion  694

Says it will be removed from my reports May 2017. That would be 12 years of negative reporting! Please help me with advice if you can.

[RobertEG]

What happened between 2005 and July 2010?

It appears that a new chain of delinquency began in approx 6/2010, which would have reset the DOFD and would then be the controlling DOFD for both the charge-off that was then taken, and any reported collection.

If the account was brought back into non-deliquent status after the original DOFD, then the new DOFD would result in an exclusion date in 2017.

[Boragard]

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@RobertEG wrote:

What happened between 2005 and July 2010?

It appears that a new chain of delinquency began in approx 6/2010, which would have reset the DOFD and would then be the controlling DOFD for both the charge-off that was then taken, and any reported collection.

If the account was brought back into non-deliquent status after the original DOFD, then the new DOFD would result in an exclusion date in 2017.

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I got the loan back in October 2005, it went into pay status in July 2006.  DOFD was August 2006.  From January 2006-2008 it reported as ok on CRs even though first deliquency happened during that time.  From 2008-2010 it disappered from my credit reports. i inquired about this to Sallie Mae.  They said I was on a loan forbearance (something I never applied for) from 2008-2010 that is why no reporting occured.  In 2010, it went back into pay status and obtained by another collection agency named "Allied Interstate".  I was speaking to a friend who told me that since it was off my report for two years and since it was taken by a new collection agency that it would report on my reports as "New" as of 2010. 

I would post a pic of it for simplicitiy but I don't know how to do that within messages. 

[RobertEG]

The DOFD is defined as the date of commencement of delinquency on the account, where the delinquency continued up to the point where they did the CO.

The issue is thus apparently whether ther forebearance of payments comprised a non-delinquency status during that period.  Apparently, it did,or at least the creditor feels that it did.  If so, the DOFD would be reset when  new first delinquency occured.

[Boragard]

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@RobertEG wrote:

The DOFD is defined as the date of commencement of delinquency on the account, where the delinquency continued up to the point where they did the CO.

The issue is thus apparently whether ther forebearance of payments comprised a non-delinquency status during that period.  Apparently, it did,or at least the creditor feels that it did.  If so, the DOFD would be reset when  new first delinquency occured.

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It indeed did, as it will not be removed for another 3 years.  Is there anything I can do?  I am definitely going to send a letter to Navient.  But I truly want to get this REMOVED from my life and Credit Report forever.

Now what happens if this happens again? Isn't this illegal to renew/reage debt?

Also, do you know the SOL in IL? I really would love to see go away.  Its been 9 years already!

[Anonymous]

Perhaps trying to negotiate a settlement with a promise to remove from your report? You may have some luck with this?

[Boragard]

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@Anonymous wrote:

Perhaps trying to negotiate a settlement with a promise to remove from your report? You may have some luck with this?

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Ok I will try that.  Thanks.

[Boragard]

Does anybody else have any suggestions on this topic?

[RobertEG]

Exclusion is not based on the date of first-ever delinquency under the account, it is based on the date of first delinquency in the most recent chain of delinquency that immediately preceded the charge-off.

The fact that the DOFD was reset is in compliance with the statute, and is not improper re-aging.