I had a private loan with Alaska Student loan. Years ago it defaulted and I had ben repaying a creditor for quite some time. I had found out that if I stopped paying the creditor the loan would then go back to the original lender and they would do wage garnishment and remove the 25% collection fees I had been paying to the creditor. THe garnishment was done without a judgement, in Alaska they just do it.
Since Then I have been paying back the loan as fast as I can, about 10k in the past 3 months as I have been working 80+hr weeks and paying on top of the garnishment. I have another 6k to go before I have it completly paid off which is an amazing realization that I will get out from under this!
My question is this. Now that I am repaying the original lender and am now caught up on payments what is the best way if possible to remove the negative credit remarks and turn them into positive. I have been using lexington law for the past 8 months but I do not know if that is what they do. I realize that lexington may not help in this regard So I ask you what it is that I may also do. I really appreciate the help!
One strategy might be a "pay for delete" approach - stop making your extra payments and build up the funds to pay off the debt in one payment. Then, contact the lender and inform them that you will make a lump sum payment if they agree to improve (or even remove) the negative tradeline. Since they have already garnished you, there's really nothing more they can do - their motivation to help you may also be limited, but the idea of the lump sum payment may be more appealing than waiting out repayment through the garnishment and hoping you don't lose your job or skip out in the meantime.
If that doesn't work, you can send as many goodwill letters as it takes. The lender does not have to respond, but your efforts to repay the loan will reflect well on your request. If they choose not to change the reporting though, you'll just have to wait out the 7 year reporting period and focus on building your credit in other areas.