Rehab effect on old lender TL's?

[Anonymous]

After you finished your rehab did they remove the default notation from your account? Is your issue they didn't remove the default or that their tradelines are still on your report? From what I have read from other members Sallie Mae usually gives a hard time about deleted the actual tradelines, but they MUST remove any default notation after you complete rehab. None of the lenders are required to delete the tradelines or any past late notations however most do.

[Anonymous]

All I'm asking is that Sallie Mae remove the defaults (as they are required to do by law) -- so far they refuse. The loans were also previously serviced by Citibank, and they removed their TL's entirely.

[Anonymous]

Some of my loans had the status updated, some were reported late while I was paying on the rehabed loan, us dept of ed loans reported lates all the way into mid 2014, some loans are completely gone depending on which credit buearu I look at. My rehab was finished in early 2013. I'm actually looking into hiring a lawyer to deal with this mess, I'm at wit's end with this battle. No one at Navient os US Dept of Ed cares, all I here is everything is being correctly reported. 

[Anonymous]

The 30-day period for Sallie Mae to respond to my dispute on their reporting expired on 3/16/15 without response. I have sent letters to all three CRA's. Now what?

[Anonymous]

The latest update to my Sallie Mae/Navient saga:

Sallie Mae has now changed their reporting to "paid or paying as agreed", but they have not removed any of the late pay reporting.

Section 682.405 states (after loan rehab), that the prior holder of the loan must: "request that any consumer reporting agency to which the default was reported remove the record of default from the borrower's credit history", and "the prior holder of the loan must, within 30 days of receiving the notification from the guaranty agency, request that any consumer reporting agency to which the default claim payment or other equivalent record was reported remove such record from the borrowr's credit history."

I realize this is open to interpretation, but doesn't "default claim payment" and "other equivalent record" mean the late pay notations as well? Should I keep poking the bear, or let it be?

[Anonymous]

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@Anonymous wrote:

The latest update to my Sallie Mae/Navient saga:

Sallie Mae has now changed their reporting to "paid or paying as agreed", but they have not removed any of the late pay reporting.

Section 682.405 states (after loan rehab), that the prior holder of the loan must: "request that any consumer reporting agency to which the default was reported remove the record of default from the borrower's credit history", and "the prior holder of the loan must, within 30 days of receiving the notification from the guaranty agency, request that any consumer reporting agency to which the default claim payment or other equivalent record was reported remove such record from the borrowr's credit history."

I realize this is open to interpretation, but doesn't "default claim payment" and "other equivalent record" mean the late pay notations as well? Should I keep poking the bear, or let it be?

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They are require to removed the default status as well as any derogatory marks reported after the loan officially defaulted.  They are not required to remove derogatory marks that were reported prior to default, although many lendors do.

[Anonymous]

What about the fact that Sallie Mae failed to alter their TL's within 30 days when notified of the loan rehab, or that they failed to respond to my dispute within 30 days -- they failed to act timely in both cases. Shouldn't I make a stink about that?

[SCF]

It normally takes 60-90 days for updates to happen after a rehab is complete.  The information has to populate through a number of computer systems - so between the fact that it takes time for Sallie to get and verify the completion, and then to report, and then it takes time for the CRAs to actually update your report, it's just slow.

As far as their non-response to your dispute - you did the right thing by escalating to the CRAs, and it looks like you got the right result.  It's not great that Sallie Mae didn't respond why they were supposed to, but there's not a lot to be done about it.  You could try using this information in a goodwill letter, but I think those letters get better responses when they are a "sob story" or a "positive change" storyline rather than being angry at the lender.

[Anonymous]

To recap, during the time that I was trying to get Sallie Mae to remove the default notations after my SL's were rehabbed, Navient reported that I was disputing the current accounts that are in good standing. The dispute took a few ticks off my score.

I received the following letter from Navient today: "Per your request we have removed the compliance code from all your accounts. Please follow up with credit reporting agencies. Account previously in dispute - investigation complete, reported by data furnisher. "

Question: what is a "compliance code"?

[Anonymous]

Just curious where you've ended up with this endevour ... I've just started down the rehab path myself.