Student Loan Rehab Nightmare

[Anonymous]

Hi Everyone, I have been reading through the forums here and just recently decided to open an account- I'm a newbie but wanted to share my experience with student loan rehab. 

I had student loans from 2005-2007 which I defaulted on with Wachovia, they were Federal. I successfully completed my student loan rehabilitation in 2011. I am currently in school, so these loans which were transferred to NelNet are in good standing, and I continue to pay monthly even though they are deferred. 

In my quest to rebuild my credit, as many of you-- I was irresponsible and unknowledgable with credit in my early 20's- I pulled all three CRs. And this is when the nightmare started...

Since Wachovia had been bought by Wells Fargo years ago-- Wachovia had transferred my loans to ACS. Once I completed my rehabilitation, although any negative collection reporting was removed and Nelnet shows the loans in good standing, ACS/Wachovia was still reporting my loans as past due over 120+ days.....

When I contacted ACS directly, hey had no record of my loans but figured that during the buying of Wachovia, all loans were transferred to Wells Fargo...when I called Wells Fargo, they either had any information on the loans. I disputed the negative marks on my CRs and all the loans were verified. What's worse....on EX and EQ the Wachovia loans were reporting from ACS/Wachovia AND Wells Fargo- Wells Fargo and "consolidated" some of the loan amounts into one loan and thus, reports on my CR were duplicate, with wrong balances and killing my score. Since Wells Fargo couldnt find any loans other than a private one in their system or archives-- I couldn't even correct the numbers they were reporting in hopes they would align with ACS balances so that I could file for deletion based on duplication. 

I contacted the Dept of Ed they sent me a letter verifying the loans that I had rehabilitated, sent them over to WF and ACS as part of a debt validation (since noone could tell me WHO was holding or reporting the accounts) and BOTH ACS and WF verified the loans AGAIN. 

I sent letters to all CRAs with the letter of succesful rehabilitation, print outs of tradlelines with duplication information...ALL VERIFIED. I was told they used E-Oscar? (sorry newbie here, not sure how that even works). 

Finally, after 8 CRR letters I received a letter from Wells Fargo that said they were reporting 8 student loans, when in reality they were only servicing 1, which is a private loan. Still, to date, no changes on my CRs however. I've cried with CSRs on the phone, I've spent over $85 in sending letters....

What a nightmare. Any experiences with similar situations or remedies please help!! Could I have done something different? Did I miss somethiing? 

[IOBA]

Have you filed a complaint with the BBB or the AG for false reporting?

Before you go further, it's important to have a master timeline that shows everything with everyone involved.  

Clearly state in your letter was is wrong and what end result you want from each company.

I don't know if this will help, but it might.

[ExNavyMom]

I agree. I had a similar issue with duplicate reporting. The only thing that got my CR updated correctly was filing a complaint against Equifax (the bureau with the duplicate info) with the BBB. It took about a week for my report to be updated. The good thing about filing a complaint, is that the verified companies like Equifax are forced to resolve your issue or run the risk of the complaint being visible and lowering their rating. Make sure that you scan and upload any proof for your case to the complaint system. Also be clear and concise about the events and the steps that you took to rectify  the situation on your own.

[scvbd99]

After rehabilition, the only thing any creditor or guarantee agency has to do is remove notations of default.  You must then be given new tradelines by whichever agency funds them after you've completed rehab.  

Any and all late payment notations can stay, no matter how many times the loans were transferred. 

In short, you're at their mercy from that point on.  You can try getting them to good will delete late payment history, but it's 100% up to them as to whether or not they grant that. 

And of course, if there are any factual inaccuracies/duplicates of tradelines, then you have laws that protect you.  Best of luck with that mess.  I feel for you.

[Involver]

ACS is notoriously a nightmare to deal with.

When did you default on the loans?

[Anonymous]

I am having issues with my student loans as well.  Actually very similar to yours.  I defaulted on my loan, rehabbed it but it still says gov't claim.  I don't even know what that means.  The OC for that loan referenced me to the national student loan website to see the history of my loans, still honestly didn't help.  My credit report looks like I took out 23 loans!  I don't even know where to begin to fix all of it.  Apparently when I defaulted my loans went to ACS as well.