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Default status removed!

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Anonymous
Not applicable

Default status removed!

Dear Tacoma,

After careful review of your account, we have submitted a retraction to all national credit reporting agencies for the checked reason below. Please allow up to 30 days for the credit bureaus to process this request.

 

x Revised the account status from defaulted to transferred due to rehabilitation of your defaulted student loan.

 

 OK,someone PLEASE tell me what this will mean to my FICO score. I'm hoping.......up UP.

Message 1 of 13
12 REPLIES 12
llecs
Moderator Emeritus

Re: Default status removed!

I'd guess up. Congrats. Let us know of any change.
Message 2 of 13
Anonymous
Not applicable

Re: Default status removed!

I sure hope so, could really use a BIG jump. I have been back and fourth with disputes, GW's, and flat out begging for mercy from these people for over a year. Right now I'm at TU-636 EQ-639. When I started out on repair 15 months ago, I was at 480/495, so thanks to every one here I can finally see the light at the end of the tunnel. These School loans are pretty much my last things to deal with. I really am hoping to buy a house in a year or so. I'll for sure post when my reports are updated.  THANKS EVERYONE!!!!!!
Message 3 of 13
tdbss
Valued Member

Re: Default status removed!

Will still show it was late when it was late, but will now show paid in full.

10.28.09 EQ 571 TU 606
11.24.09 EQ 611 TU 566
1.3.10 EQ 653 TU 566
2.6.10 EQ670 TU598
5.4.10EQ691
9.17.10 EQ658 TU682
Message 4 of 13
Anonymous
Not applicable

Re: Default status removed!

So are you saying I won't see a score increase? This letter was from my original lender/servicer not from the guarantor, I was under the impression that after rehab the guarantee agency was the one that was supposed to remove the default, (Which they refuse to do) am I right or wrong on this?
Message 5 of 13
tdbss
Valued Member

Re: Default status removed!

Cant say for sure but this is what mine says.  It is listed in my equifax file as a factor, actually 8 of them, of what is bringing my score down.  I did the rehabilation and then consolodated in july of 08.  My only hope is these puppys drop off in the next few months(the 7 year mark).  However I never paid anything until I was garnished and agreed to do the rehabiliation, then later consolodated through ED. Maybe your letter means moving foward, no further derogs/  But it does'nt change the history, although I could be wrong. Interesting though how the first major deliency reported was when I consolodated, that is what is hurting me now.

 

US DEPT OF EDUCATIONPO Box 4222 
Iowa City,IA 52244-4222
(800) 621-3115
Account Number:

xxxxxxxxxxxxx

Current Status:   Account Owner:

Individual Account. 

 High Credit: $2,625

Type of Account: Installment

 Credit Limit: $0

 Term Duration: 36 Months 

Terms Frequency: Single Payment Loan

  Date Opened: 08/1998 

  Balance: $0

Date Reported: 11/2009 

 Amount Past Due: $0

Date of Last Payment: 07/2008 

 Actual Payment Amount: $0

Scheduled Payment Amount: $0

Date of Last Activity: N/A

Date Major Delinquency First Reported: 07/2008

  Months Reviewed: 58 Creditor Classification: Educational  Activity Description: N/A Charge Off Amount: $0 Deferred Payment Start Date:   Balloon Payment Amount: $0 Balloon Payment Date:   Date Closed:   Type of Loan: Education Loan  Date of First Delinquency: 03/2003  Comments: Collection account,
Refinanced  

10.28.09 EQ 571 TU 606
11.24.09 EQ 611 TU 566
1.3.10 EQ 653 TU 566
2.6.10 EQ670 TU598
5.4.10EQ691
9.17.10 EQ658 TU682
Message 6 of 13
Anonymous
Not applicable

Re: Default status removed!

I got my fingers crossed that these fall off your account SOON. I also have 8 of these bad boys, 4 Nelnet and 4 MGA. Under current status it says "currently 120 days late". And the ones from MGA also reporting the first major del the date mine were consolidated too, and also showing 120 days late right thru 11/2009 which is not correct, these were rehabbed in 8/2008. When I called about this I was told " we do not report late payments, the CRA's are picking up on the default status". So that's why I was so hoping that with the "default" status being removed that might also clear some of those late payments. Probably won't happen but it will give me something to wish for, for 30 days!! Oh and on all three CR under the comments section they all say "Paid in full" but I understand that the comment section counts for nothing, it's the current status section that counts toward FICO scoring.
Message 7 of 13
StartinOver
Frequent Contributor

Re: Default status removed!

tacoma, I'm not so sure that what is on the description doesn't count. This is why - on my scorewatch FICO Summary, one of the statements says this under #2, the section that says You have multiple accounts showing missed payments or derogatory descriptions. Then when I go to each account, under Descriptions, many say nothing, but some say: Consumer disputes this account information, or Collection Account, or Child Support Obligation,

 

So, the implication is in order of importance of what is hurting my score: 1: serious collection or deliquuency, 2) missed payments or derogatory descriptions, 3) recently missed payment, 4) short credit history (12 years).   The postive? 1) recent use of a credit card.

 

The derogs of consumer disputes this account were put on there over a year ago, the accounts are from 4-6.5 years old. yet it counts a lot against me now, thought I can't see why, unless it is because the keep up to date on reporting it.

4/25/11 FICO: EQ 761....EX 770.....TU 744
3/6/2011 FICO: EQ 710... EX 718... TU 710
09/09 FICO: EQ: 525
Message 8 of 13
Anonymous
Not applicable

Re: Default status removed!

I read on one of those college loan sites that the status section is part of scoring, not the comments section. Thats how they get ya by reporting the "paid" under the comments, and the "default" or "currently 120 days late" under the status section. Makes sense to me, as far as I can tell its all about trashing your credit. What I want to know is why do they tell you that rehab will wipe away all the derogatory stuff, and then fight you all the way when you try to get the derogs removed?
Message 9 of 13
Anonymous
Not applicable

Re: Default status removed! UPDATE

So far the CRA's refuse to update the accounts with the removed default status. They are all reporting "currently 120 days late" and I have already received all 3 of the "frivolous" letters. I also received a response from the guarantee agency which states that not only will they not remove the default status, they are also going to contact Nelnet and inform them that "the default reporting should be reinstated". I was shocked to read from the guarantee agency that not only are they refusing to honor the rehab, they are going as far as to make sure that Nelnet does the same. Crooks and thieves one and all....stay tuned!
Message 10 of 13
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