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.
Starting Score: 12/19/12 - USAA EXP 564 EQU 564 TU 568 MyFico 612Another 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/pre
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!
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!
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