Massive confusion about student loan rehab outcome.[ Edited ]
02-16-2012 10:51 AM - edited 02-16-2012 10:55 AM
I wanted to post my story here to see anyone can find any recourse for the issues I'm having post student loan rehabilitation...
I originally had 2 consolidated student loans that were being serviced by servicer A. Date opened is 2005. At some point like many people I stopped paying for these loans and foolishly allowed them to go into default. By going into default servicer A was able to file a claim, transfer and or sell ( I haven't figured which one exactly which may be why things are going the way they are ) with guarantor B. At this point my TLs with servicer A are reporting default with multiple lates and I have new TLs date opened 2009 from guarantor B also showing defaults and lates.
So last year I finally take responsibility for my credit situation and begin to contact all my creditors. I contact servicer A about my loans and they direct me to guarantor B. Guarantor B offers me rehabilitation and I gladly accept. I was given the impression that I make these on time payments and my slate would be clean. I was told that after completing rehabilitation that servicer C would swoop in take over my loans and save the day by removing all lates/defaults/etc.
I couldn't have been more mistaken. What actually happened was that after completing rehabilitation guarantor B happily removed their TLs which were all showing defaults BUT were also showing my monthly payment and reporting as current. I contacted Servicer A via phone and CRA disputes about updating/removing their TLs. That's where things go wrong. They explained to me that because the loans went into default with them and were transferred/sold/claiming by guarantor B that they wouldn't be updating any info on their TLs. They say to me that what they show is "accurate" information as it pertains to the accounts while they were servicing them. They say they will change nothing. Not even the default status!!!! At this point I'm very upset because in my eyes these are the same loans and now that guarantor B has removed their TLs there is abolutely no record of my rehabilitation.
At this point I contact servicer C in search of some positive information. I asked them how the loans will be reported...if they will be new accounts or accurately report the date they were opened. In this case 2005. They explain to me that they have purchased these loans from guarantor B and that because of this they are "new" loans and will be reported as so. Meaning 2 new 2012 accounts and a freefalling AAoA.
I contacted the DOE ombudsman. According to them all of what's happened to me is totally valid. They say that the only policy that requires anyone to do anything is that guarantor B was required to remove the default status from THEIR TLs. Servicer A and C were not required by Federal regulation to do anything other than what they have already done. Which is nothing but kill my credit.
So I ask you all myFico friends. Am I missing something here? Is someone mistaken at any point along this story? I've combed over this so many times. Has anyone had similar issues? I've been in contact with the VP of servicer A. I call him once a week asking for review after review. He continues to say that nothing requires him to do anything. Not even remove their default status. I'd think at the very least this would be part of the rehab correct??
Any help out be appreciated! Also when I started coming to myFico my scores were
Thanks to all that all of you do!! So much helpful info here its amazing. I was recently approved for a BMW lease and am also expecting my Chase Freedom card in the mail any day now!