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Valued Member
Zekester
Posts: 27
Registered: ‎12-27-2012
0

Re: Rehab waiting game

I spoke to the Customer Advocate at Sallie Mae this morning. I explained where things were at with the rehab and she told me that while other lenders will remove the lates after rehab is completed, Sallie Mae chooses not to because the law binds them to accurate reporting. The funny thing is that they deleted my tradelines and then put them back in with different information. All of the history leading up to the run of lates that ended in default are gone. So over the years where there might be a 30 day late here or there, they removed all of those. But they put in a solid string of 180 day lates for all of 2011 leading to the default. So much for the accurate reporting.

 

The advocate explained that USA Funds and Sallie Mae were two separate companies and she could not explain why USA Funds was giving me inaccurate information. 

I told her that both USA Funds and GC Services explained that the old TLs would disappear along with the collection accounts and then asked who I should call to complain about being given mis-information by USA Funds. She said she would be more than happy to give me a number for USA Funds and the number she gave me was for Sallie Mae's post claim assistance -  home of USA Funds.


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Valued Member
Zekester
Posts: 27
Registered: ‎12-27-2012
0

Re: Rehab waiting game

Another update on how this is going for me. I checked back with GC Services and was again told that the benefit of the rehab program they were offering was "total credit expungement" and all of the tradelines should be removed including the original Sallie Maes. I again contacted the Customer Advocate's office at Sallie Mae and was again told that there was no way that SM would agree to those terms. I then contacted the federal ombudsman at -  https://studentaid.ed.gov/repay-loans/disputes/prepare/contact-ombudsman

 

After filling out the form I got a call back and was told that they would investigate. About 5 hours later I got a call stating that on the 27th, Sallie Mae would delete the TL as my new lender was reporting back 10 years of paids, and there was an overlap of the reported dates and amounts between the original loans and the new, post-rehab loans. So, there is hope on the horizon!


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Valued Member
Zekester
Posts: 27
Registered: ‎12-27-2012
0

Re: Rehab waiting game

A few months on and here is what has changed... Experian still lists a default, TU shows closed with lates, EQ just updated last week and shows the TL as paid as agreed with all of the lates removed. Incredibly slow process to get everything to update and it takes a lot of follow up. Hopefully, I will get the other two updated on this month's cycle. What a pain!


Starting Score: 12/19/12 - USAA EXP 564 EQU 564 TU 568 MyFico 612
Current Score: 5/21/13 - USAA EXP 679 EQU 659 TU 677 MyFico EQ 667
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Established Member
MoreCowbell
Posts: 10
Registered: ‎08-28-2012
0

Re: Rehab waiting game

Zekester, I just want to say thanks for all your reporting. I thought I had one more rehabilitation payment to make, but I got an email from AES yesterday stating that rehabilitation is done. It sounds like they will continue to service the loan (at least, they don't mention another servicer) so I'm hoping that maybe I'll have less work to do than you did, cleaning up accounts. However, I have your posts for reference if I need them. Good luck with the rest of your work. 

Regular Contributor
hopingsoon
Posts: 231
Registered: ‎03-09-2013
0

Re: Rehab waiting game


MoreCowbell wrote:

Zekester, I just want to say thanks for all your reporting. I thought I had one more rehabilitation payment to make, but I got an email from AES yesterday stating that rehabilitation is done. It sounds like they will continue to service the loan (at least, they don't mention another servicer) so I'm hoping that maybe I'll have less work to do than you did, cleaning up accounts. However, I have your posts for reference if I need them. Good luck with the rest of your work. 


Good luck with AES. Please post any updates as I just rehabbed with AES and am still waiting for it all to shake out. 



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Frequent Contributor
CreditJunkie917
Posts: 403
Registered: ‎01-08-2013
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Re: Rehab waiting game

I'm interested in this too. Will be done with rehab wi them in September.
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Established Member
MoreCowbell
Posts: 10
Registered: ‎08-28-2012
0

Re: Rehab waiting game

Okay, I'll be sure to post what happens with AES. 

Established Member
MoreCowbell
Posts: 10
Registered: ‎08-28-2012
0

Re: Rehab waiting game

[ Edited ]

About a week after getting the "your loan is rehabbed" email, I got a regular mail letter saying the same thing. It looks like AES will continue to service the loan. The letter has two contradicting statements; it says that if I had an automatic debit set up during the rehabilitation, which I did, that that would carry forward with the new payments. At the same amount. But it also says that I have to return a new debit form to them within 30 days. I'm waiting a few days to see if they actually remove a payment on the 5th, which was the date during rehabilitation. Frankly, I could use a month off; the $500 payments were as much as I could afford, and they don't leave any room for emergencies. But I don't want to mess things up, either. 

 

I'll give it 30 days and then check my credit report to see what's up with the "default" status. 

 

eta: I got my promissory note and paperwork today. AES will service the loan. The payments are staying $500 which was what I was paying under rehabilitation. They start July 1, which gives me the month of June off (which I need, because I have insurance payments due). The loan amount was $28k, they added $5k in interest, and with a 96-payment plan there will be an additional $14k in interest, at 9%. Holy smokes. The letter states that there MAY be an interest rate reduction if I use direct debit. I'll call and ask about that, because if there isn't, I'll just send them monthly payments. I don't like letting people just take money out of my account. 

 


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