Charged-Off SLs being double reported - Help!

[IOBA]

Opting out prevents the CB from selling your information to other companies, like CA's.

My next suggestion is to make a list of all of the loans -- all 11 -- that Key Bank is collecting money one.  Put them in order, with the smallest balance first.   Put EVERYTHING you can into this small debt, while making the minimum payments on the other 10 loans.   When you send in payments, make sure you spell out that the extra is to be applied to the principle of loan xxx.   After payment has posted, follow up and make sure they applied the payment correctly.

When the first loan is paid off in full, and you have that letter from Key Bank saying it's paid off, then write them a good will letter for THAT loan ONLY.  It's paid off, please delete the tradeline.   *fingers crossed* that they do it.

Still write goodwill letters to AES asking them to delete the tradelines since Key Bank is also reporting them.   Be nice, be polite.

[IOBA]

PS - when I say put EVERYTHING on the smallest loan, I do mean EVERYTHING, even if it means making 5 pymts a month.   Walk into a branch if possible to make the loan payment.   It's a strategy that I use when I have debt and it is amazing how the smaller payments add up.   Be sure to make the regular payment at the regular time to ensure they don't feel you fell behind since the extra is applied to principle ONLY.  

[Anonymous]

Thanks again for taking the time to reply to my personal situation.

The strategy you state above (put all extra money to smallest loans) is essentially what I'm doing with the payments on the 11 Key loans now. I had also considered trying to PFD on the smaller Key loans that I think I could pay off in full right now. Thoughts on that?

Also, I haven't even tried to GW AES regarding the charged-off loans, but that makes sense since they really have no skin in the game anymore. I could probably pull together some documentation that will show that I am paying Key directly for the charged-off loans.

[MBOhio2]

Can I get thoughts/opinions on the following GW letter:

Re:      Account #: XXXX

Dear American Education Services:

My purpose for writing this letter today is for two reasons. First, I would to thank AES for the excellent service provided to me over the past few years with my Key Bank student loans, which I understand are serviced by AES. Even through tough times and a bout with unemployment, the representatives that I have spoken with at AES have always been kind and respectful.

The second reason for my email is to request a measure of goodwill concerning six student loans that charged off over the course of December 2009 and January 2010. I am asking that AES delete these tradelines from my credit reports with Equifax, Experian and TransUnion. The six loans that charged-off show the following account open dates on my Experian credit report:

X, X, X, X, X, X

In May 2009 I was a casualty of the recession. I lost my job and remained unemployed for over 9 months. Though I did everything possible to stay current on my financial obligations, continuing to make smaller payments to AES when I could (as evidenced by the payment history from June-December 2009), I was unable to make large enough amounts payments to prevent default on these six student loan accounts. However, you will see that I was able not all of my KeyBank loans serviced by AES charged-off. Fortunately, on February 1, 2010 I obtained a full-time job and immediately began paying my existing loans with AES on time. For those loans that did not default, I have made all payments on time and stayed current since February, 2010.

In addition, I have entered into informal payment arrangements with Key Bank and make monthly payments on the defaulted/charged-off loans in order to eventually pay these loans in full. Unfortunately though, the six above-listed loans are currently being reported to the credit bureaus (Equifax, Experian and TransUnion) as “charged-off” by both Key Bank and AES. This gives the appearance to lenders that I actually had twice as many accounts charge-off that was actually the case, which is misleading and unfair.

Over the past 12 months I have worked very hard to recover from my extended unemployment. In addition, I have recently begun the quest to purchase a first home for my family, including my 7 year old son. Unfortunately, I have been informed by multiple mortgage lenders that the charged-off loans being reported by AES on my credit reports will prevent me from being approved for a mortgage loan. I take full responsibility for the late payments and eventual defaults/charge-offs; however, it was due to circumstances beyond my control and do not reflect my current ability to pay my financial obligations. In addition, the double-reporting by Key Bank and AES is unfairly holding me hostage to past difficulties and making it impossible for me to move forward in my life.

As a result, I am kindly asking you to request that the three credit agencies to delete these six duplicative AES tradelines from my credit records.  I know that you are under no such obligation to do so, but I am begging you to show some goodwill and help assist me and my family in our search for a home. As a current customer with AES in good standing, I humbly request your consideration. Anything you could do to assist me would be greatly appreciated. I thank you for the time you have spent reading this letter and look forward to receiving a decision in my favor.

Kind regards,

MBOhio2