05-09-2017 08:08 AM
I had a Direct Loan that was transferred to MOHELA in 2012, and eventually got late on payments/defaulted. Last July I found it was with FMS DC, started rehab, etc.
I completed my ninth payment on 3/15, loan was transferred to Navient ~4/20, and I immediately set up an account to make sure I don't mess this up again. Yesterday (5/8) my EQ FICO 8 went up 28 points, and upon looking at CK, the new Navient accounts show up as in good standing with the original loan dates. So far, so good.
However, when I look at the old Dept of Ed accounts, they not only show the late payments (expected), but they're still showing the charge offs. Unless I'm missing something, the charge offs should be removed, should they not? My real question is, am I jumping the gun and just need to wait another week or two for those accounts to remove the charge offs? Or do I need to contact somebody b/c something didn't get done properly? I guess my issue is that the accounts were changed from "open" to "closed," so why wouldn't they take care of the charge offs at the same time?
Also, if I should contact someone to remove the charge offs, which servicer should I contact? Navient/FMS/MOHELA/Dept of Ed? If the 28 pt jump was only due to AAoA, hopefully it will go up even more with the COs removed.
Thanks in advance,
Started with: TU 535 (11/16)
Now: EQ 646 TU 628 EX 594 (5/17) (TU and EX still awaiting update after rehab)
05-31-2017 08:38 AM
I recently completed rehab myself and the loans have been transferred to Navient, just curious how things look for you now. Are the lates gone? How long for the default notation (in whatever form) to be removed? Did the old tradelines go away completely or did they just update?
05-31-2017 03:23 PM
My old accounts with the charge offs were removed starting May 17th, and took until the 19th for Experian to remove it. So, just over the 60 days that I understood the max to take.
FWIW, FMSDC told me they had 30 days to finalize the account on their end before the 60 days starts, thus making it 90 days in total. I'm not sure whether that's true, but they did take exactly 30 days after my last payment to finalize it, missing their credit reporting cycle by a few days, making me wait until the next cycle before it was finally taken off of my credit report.
As far as what's showing now, my accounts with the charge offs were removed completely, they don't exist on my report in any form. The old Dept of Ed/Mohela accounts with late payments prior to the defaults are still on there (showing as closed), but should fall off in three years. My new Navient accounts are showing in good standing, no late payments, etc with the original opening dates for account age.
My FICO 8 scores went up around 45 pts or so.
Hope that all makes sense.
05-31-2017 03:36 PM
I did, the day after my last payment.
TU took whatever they had for those accounts off within a day or two (though they didn't have as much info to begin with). EX and EQ left them on and called them resolved (I begged to differ), as FMSDC hadn't settled the accounts until 30 days later. When I hit 60 days, I disputed EQ again, but EX wouldn't let me since I had already disputed them within 120 days. A few days later they ended up coming off, anyways.
06-07-2017 11:26 AM
Monday (6/5) the charged off accounts popped back up on TU, dropping my score 69 pts. Obviously not happy, I immediately disputed the accounts online. I called ed.gov via the number listed on the accounts, and she told me that ed.gov had reported the accounts properly (in good standing, no charge offs). Today (6/7) they disappeared of TU, bumping my score back up to where it should be. Looking at the TU dispute progress online, it shows they haven't yet completed the dispute, so I'm unsure of which action removed the bogus accounts.
I'm just glad it was resolved so quickly, as we're looking at buying our first house soon, and that update on Monday was not good at all!!!
06-07-2017 12:26 PM
I currently have mine in dispute with Transunion (other two have different disputes that are fixed, but not resolved for some reason). Hoping they go away along with the negatives. I do have new tradelines reporting, but they are also marked closed...not sure what is going on there! My loans are now with Navient and they have sent me an email letting me know that they will be my servicer, but the student aid website still shows my loans in default, but that Navient is my servicer. I just have a bad feeling about this!
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