Reply
Regular Contributor
mmmlive1999
Posts: 131
Registered: ‎12-18-2012
0

Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

Hi All,

 

I did my 9mo SL rehab through Direct Loans which ended in Feb.of this year, I was then placed with Fedloan Servicing and they gave me 6 new TLs!!! This part is great but I still have a charge off with a 0 balance from the Dep of Edu listing on all my reports. It sounds like most people on here had all neg TLS removed after rehab. 

 

I called the Dep of Edu and they said everything was transfered to FedLoan Servicing and there is nothing they can do :-(

 

Called Fed Loan Servicing and they had no knowledge of the old TL.

 

What should I do ???

 

Thanks,

Starting Score: 06/06/2012:FAKO TU 585/EQ 472/ EX 561
Current Score: TU98 688/TU08 644, EQ5.0 679/ EQ 680 (Cap1),
EX 652(Chase)/EX08 655

Goal Score: 700 by 12/2014
CC:Cap1 Venture-$3300, Quicksilver-$1750,Chase Freedom-$2200
Store Cards: Vic.Sec -$450, Walmart-$500 ,Gap $400( as of 3/28/2014)
Valued Member
ironsight
Posts: 45
Registered: ‎07-19-2012
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

ask them to send you a letter validating your rehab, then send copies of that letter along with a dispute to all three CRA's.  That is what I am doing on the advice of Nelnet, waiting on my letter right now.  Good Luck!

 

Regular Contributor
mmmlive1999
Posts: 131
Registered: ‎12-18-2012
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!


ironsight wrote:

ask them to send you a letter validating your rehab, then send copies of that letter along with a dispute to all three CRA's.  That is what I am doing on the advice of Nelnet, waiting on my letter right now.  Good Luck!

 


Thanks! I will request a validation letter.

Starting Score: 06/06/2012:FAKO TU 585/EQ 472/ EX 561
Current Score: TU98 688/TU08 644, EQ5.0 679/ EQ 680 (Cap1),
EX 652(Chase)/EX08 655

Goal Score: 700 by 12/2014
CC:Cap1 Venture-$3300, Quicksilver-$1750,Chase Freedom-$2200
Store Cards: Vic.Sec -$450, Walmart-$500 ,Gap $400( as of 3/28/2014)
New Contributor
cem13
Posts: 59
Registered: ‎07-20-2012
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

Im in the same situation.

 

I defaulted in 2008.  I started to rehab then filed BK7.  Original rehab was denied by DOE since I missed my last payment on the advice of my Attorney.  He tried to get my SL dismissed in BK7 but was unsuccessful.  So thankfully I did a second rehab and was then tranferred to FedLoan.  The DOE default TLs came off within a week and I jumped 40 points.  However the original loan was marked as "paid in collections".

 

I called DOE and they told me the original loan will still report as defaulted.  The new loan from Fedloan has yet to report (3 months).  I already have 2 installment loans reporting so I really dont need 3 more.  So I am not pushing Fedloan to report.

 

I then called the Ombusdsman which was a waste of my valuable brain matter.  Those people are just plain below average performers.  There is no other explaination.  I would bet the average IQ is around 88.  That is our governement for you.

 

Anyway, DOE says the loan is closed and no further reporting can occur.  Fedloans says they cannot correct anything in the past because they did not have the original loan.  You talk about frustrating.  So I spoke with a supervisor TWICE.  She told me the original loan was in default....PERIOD.  And they will report as such: Paid in collections"

 

I have disputed this TWICE with the CRAs and it comes back as Paid in collections both times.  I will try the validation letter route and then send that to the CRAs.

MyFICO '08: AUG2014: EQ=707, TU=693, EX=711
MyFICO '08 JUN2014: EQ=700, TU-688
MyFICO JAN2014: EQ=704, TU=720, EX=708
MyFICO MAY13: EQ=701, TU=708, EX=705 (Lender Pull).
MyFICO JAN13: EQ=701; TU = 677) 2 years after filing BK7, 18 months after discharge in JUN11
MyFICO (SEP12: EQ=677; TU=670) 16 months after discharge BK7.
MyFICO (JUL12: EQ=671) 13 months after BK7.

Wallet: NFCU Rewards: $25K; Cap1 QuickSilver: $2250; Barclays Apple Rewards: $2000; Cap1 Rewards: $1500.
Regular Contributor
mmmlive1999
Posts: 131
Registered: ‎12-18-2012
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

[ Edited ]

thonati wrote:

Im in the same situation.

 

I defaulted in 2008.  I started to rehab then filed BK7.  Original rehab was denied by DOE since I missed my last payment on the advice of my Attorney.  He tried to get my SL dismissed in BK7 but was unsuccessful.  So thankfully I did a second rehab and was then tranferred to FedLoan.  The DOE default TLs came off within a week and I jumped 40 points.  However the original loan was marked as "paid in collections".

 

I called DOE and they told me the original loan will still report as defaulted.  The new loan from Fedloan has yet to report (3 months).  I already have 2 installment loans reporting so I really don't need 3 more.  So I am not pushing Fedloan to report.

 

I then called the Ombusdsman which was a waste of my valuable brain matter.  Those people are just plain below average performers.  There is no other explaination.  I would bet the average IQ is around 88.  That is our governement for you.

 

Anyway, DOE says the loan is closed and no further reporting can occur.  Fedloans says they cannot correct anything in the past because they did not have the original loan.  You talk about frustrating.  So I spoke with a supervisor TWICE.  She told me the original loan was in default....PERIOD.  And they will report as such: Paid in collections"

 

I have disputed this TWICE with the CRAs and it comes back as Paid in collections both times.  I will try the validation letter route and then send that to the CRAs.


It sure sounds like we have been talking with the same people at the DOE. They seem to lack the basic understanding of how this erroneous double reporting is so damaging. I just don't understand how they get away with reporting the same loans twice! I think they need to be listed as one status or the other,not both simultaneously..........Ugh!

 

Well, just sent my first round of disputes out last week sighting "the loan was transfered" to the CRAs,but hold little hope that they will erase that CO * fingers crossed *and I requested the validation letter from the DOE but assume it is only going to reflect "paid collection".

Starting Score: 06/06/2012:FAKO TU 585/EQ 472/ EX 561
Current Score: TU98 688/TU08 644, EQ5.0 679/ EQ 680 (Cap1),
EX 652(Chase)/EX08 655

Goal Score: 700 by 12/2014
CC:Cap1 Venture-$3300, Quicksilver-$1750,Chase Freedom-$2200
Store Cards: Vic.Sec -$450, Walmart-$500 ,Gap $400( as of 3/28/2014)
Regular Contributor
mmmlive1999
Posts: 131
Registered: ‎12-18-2012
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

Bump:smileyindifferent:

Starting Score: 06/06/2012:FAKO TU 585/EQ 472/ EX 561
Current Score: TU98 688/TU08 644, EQ5.0 679/ EQ 680 (Cap1),
EX 652(Chase)/EX08 655

Goal Score: 700 by 12/2014
CC:Cap1 Venture-$3300, Quicksilver-$1750,Chase Freedom-$2200
Store Cards: Vic.Sec -$450, Walmart-$500 ,Gap $400( as of 3/28/2014)
Valued Member
mspiggybank
Posts: 35
Registered: ‎01-15-2013
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

I'm in the same situation. I was told by DOE to contact the new lender and have them update and to also dispute with the CRAs. The agent gave me the phone numbers for the three main bureaus and Innovis. When I called the new lender, they told me they couldn't connect me with anyone who handle credit directly and that I had to mail or fax a letter stating that my account. I did that yesterday and also opened a dispute with the CRAs as the DOE suggested. The agent from my new lender told me straight out that I might have to follow up multiple times to get them to update quickly. He told me to start following up early next week. I guess it's just a waiting game now.

Starting Score: 610
Current Score (MyFico.com): 610
USAA Scores (as of 1/15/13) - EX: 553 EQ:562 TU:562


Goal Score: 675 by the end of 2013


Take the myFICO Fitness Challenge
Regular Contributor
mmmlive1999
Posts: 131
Registered: ‎12-18-2012
0

Re: Direct Loans rehabbed to FedLoan Servicing still shows a baddie!!!


mspiggybank wrote:
I'm in the same situation. I was told by DOE to contact the new lender and have them update and to also dispute with the CRAs. The agent gave me the phone numbers for the three main bureaus and Innovis. When I called the new lender, they told me they couldn't connect me with anyone who handle credit directly and that I had to mail or fax a letter stating that my account. I did that yesterday and also opened a dispute with the CRAs as the DOE suggested. The agent from my new lender told me straight out that I might have to follow up multiple times to get them to update quickly. He told me to start following up early next week. I guess it's just a waiting game now.

This is the same info I was given and the letter the DOE sent me stated that the DOE would "advise the credit bureaus to delete any information provided by the Department regarding the default status of loans that have been rehabilitated", however when I disputed with the CRAs in Jan they VALIDATED!!!!  :smileyfrustrated:

So I talked with someone at the DOE yesterday and they gave me a fax # to their office and told me to send the deletion request to them with a copy of the credit report.

I think this may get it taken care of....It was officially one year ago Feb. 1st, that I completed rehab and  this stupid closed account has been haunting my reports ever since.

 

If this works I will post in an update.

 

 

 

Starting Score: 06/06/2012:FAKO TU 585/EQ 472/ EX 561
Current Score: TU98 688/TU08 644, EQ5.0 679/ EQ 680 (Cap1),
EX 652(Chase)/EX08 655

Goal Score: 700 by 12/2014
CC:Cap1 Venture-$3300, Quicksilver-$1750,Chase Freedom-$2200
Store Cards: Vic.Sec -$450, Walmart-$500 ,Gap $400( as of 3/28/2014)
New Contributor
pisspoorcredit
Posts: 130
Registered: ‎06-19-2014
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

Tell me about it! Me too! I just completed my rehab...those double reportings with Dept of Ed is killing me! Waster of brain matter is RIGHT!

Starting Score: 503
Current Score: 510
Goal Score: 700


Take the myFICO Fitness Challenge
Member
DraconTesla
Posts: 21
Registered: ‎07-01-2014
0

Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!

So with the old loan still reporting did doing the rehab help your credit report that much? I have some loans in default and reading through these threads it is not encouraging to rehab them.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+