04-13-2012 01:09 AM
Having some trouble getting negatives removed from my CR and I'm not sure who to call to get this straightened out. I was hoping someone could help
Here's my situation in easy to read bullet points:
-Original loan servicer - Direct Loans
-Date of 9th payment to default resolution group - August 2011
-Date default resolution group claims to have put in CR fix - December 2011
-Rehabilitation went through - Feb 2012
-Loan picked up by Great Lakes - April 2012
-I just got the email about this 4/13.
As of March 17th Equifax is still showing my account as deliquent with negative entries coming from "US Dept Ed" (TU shows it as "US Dept of Ed -Direct").
I contacted the Direct Loans servicing center and they pleaded ignorance saying anything on my credit report wasn't coming from them. Since the collection agency claims to have put in a fix and the original servicer is saying they don't know anything about it who should I be pestering to get these late payment entries removed and the status of my loan updated to current? Great Lakes? Direct Loans? Default resolution group? Should I just dispute the negatives with the reporting agencies and hope all entries come off?
Any help with this would be greatly appreciated. Thanks a lot,
04-26-2012 09:54 AM
Hi I am fighting this same issue right now. It is very very difficult to get anyone to help with this issue. Everyone claims ignorance and everyone has an OPINION on how this process is supposed to work. For my situation, I had my original few Direct Sub and Unsubsidized loans directly from the government. I then consolidated into FFEL loans through a company called ACS. Then defaulted, then rehabbed. I completed rehabilitation in August of '11 and still do not have my credit report fixed.
Some people are now trying to say that your credit report does not get changed to delete delinquencies. They're claiming that is not provided by the loan rehab. Although if you were fed the same information as me regarding Loan Rehabiliation, they very clearly said that my credit report would be changed to look as if i never defaulted on my student loan. Personally I am having the hardest time getting this accomplished and if I wasn't a somewhat prideful man I would be in tears as a result of the road blocks I keep running into. I am at the brink of hiring a lawyer to fight this all the way to the top. The law very clearly states that ones credit report should have the default status deleted. The explanation i keep receiving is that they do delete the default but not the delinquencies....the problem is that the delinquencies ARE the default. Please share some information on your experience in regards to what your credit report showed for your defaulted loan account. Mine never said "student loan in default status" so that cannot be deleted.
I wish you the best in your fight and I hope both of us can get your situations resolved. I will also report back if I have any breakthroughs with this ordeal, my next step is to call the Dept. of Education and fight it out with them. In my opinion, all these road blocks appear to exist to keep me in my place as a lower member of society, that is the only way I can explain it. It feels as if no one is out there to help and anyone that could would rather see me held down. It's crushing....I'm trying to keep my head up but it's difficult. Regardless, I am going to keep fighting for people like us.
03-21-2013 06:14 PM
Finally got some resolution here. It appears to be all in who you talk to. After having 4 seperate people at the direct loan servicing center tell me they put in a CR fix and 2 years of BS my score finally got the bump (70 points) I expected when I started this process.
Yesterday I called the DLSS as a last ditch effort and asked to speak to a supervisor. When I got him on the phone I was as polite as possible as I explained the situation here's how the conversation went:
"I was under the impression that after my loan was picked up by a new servicer any record of a default was to be removed within 90 days. Is that correct?"
"yes, that is correct."
"well my loan was picked up 11 months ago and my 9th payment was 18 months ago and my report isn't fixed. Is there anything else you can tell me about when this fix will actually be completed?"
long pause..."I'm gonna have to put you on hold"
"Ok, sir. Thank you for holding. Now that you've got me involved you should get an email from DLSS within 3-5 days saying that your credit file has been updated."
I totally thought this was another brush off and was preparing to start calling lawyers today. I got off the phone with Direct Loans at 4:30pm yesterday and at 8:30am I had an email from my credit monitoring subscription saying my score had changed. Checked my report and the account status was changed from collection account/closed to paid/closed.
Keep on em people, they are legally bound to fix this problem. Don't let them tell you it can't be done. Here's the text of the relevant laws from another thread:
20 USC § 1078–6 (C)
Upon the sale or assignment of the loan, the Secretary, guaranty agency or other holder of the loan shall request any consumer reporting agency to which the Secretary, guaranty agency or holder, as applicable, reported the default of the loan, to remove the record of the default from the borrower’s credit history.
34 CFR § 682.405 (b)(2)
The guaranty agency must report to all national credit bureaus within 90 days of the date the loan was rehabilitated that the loan is no longer in a default status and that the default is to be removed from the borrower's credit history.
the applicable law for FFEL (stafford) loans is 20 USC § 1078–6, found here http://www.law.cornell.edu/uscode/uscode20/usc_sec
the applicable regulation for FFEL loans is 34 CFR. § 682.405, found here http://law.justia.com/us/cfr/title34/34-18.104.22.168.40
the terms for rehabilitation of perkins loans are essentially the same as stafford
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