topic Re: UPDATE: Re: Rehab effect on old lender TL's? in Student Loans

Rehab effect on old lender TL's?

Anonymous — Sun, 11 Jan 2015 20:44:00 GMT

I just finished student rehab with ECMC and I am awaiting for the new lender to pick it up and the ECMC TL deletions. My question is, what happens with the TL's from old lenders on the loans (Citbank, and then Sallie Mae). In total, here are 16 TL's between ECMC, Citibank and Sallie Mae. Do all 16 come off following rehab?

Re: Rehab effect on old lender TL's?

SCF — Sun, 11 Jan 2015 20:58:58 GMT

What is the status of these tradelines? Are these the lenders that held the loans when you originally defaulted?

The lenders who held the loans when you originally defaulted are required to remove any notation of the default - this includes remarks like "claim filed with gov't" and the actual default status on the tradeline. They are not required to remove the late payments that led up to the default, but some lenders will do so. If they don't remove the lates, sometimes GW requests can change their minds.

Re: Rehab effect on old lender TL's?

Anonymous — Sun, 11 Jan 2015 21:19:22 GMT

Sallie Mae and Citibank were the original lenders when the loans went into default in December 2012. Citibank had the loans in 2009 - 2011. Sallie Mae status report as "account transferred" on Experian and "Student Loan Assigned to Gov" on Eq and TU. Citibank reports as "transferred or sold".

So, the tradelines will remain, but the default notations get deleted? I think I was hoping those TL's would go away when ECMC deletes theirs.

Re: Rehab effect on old lender TL's?

Anonymous — Wed, 21 Jan 2015 22:59:47 GMT

UPDATE: I spoke to the ECMC credit reporting department today and this is what they told me. The loans were purchased by Navient on 1/20/15. On Saturday, ECMC updates their system and does two things; 1. They remove their TL's, and 2. They notify the prior loan servicers (Sallie Mae and Citibank) that the loan has been rehabbed. I am told that the prior loan servicers remove their TL's once ECMC tells them that the loans have been rehabbed.

So, if all goes well, I should see 16 TL's with lates and defaults disappear! ECMC says if the old servicer TL's are still on my CR after 120 days, I can file a dispute to have them removed.

UPDATE: Re: Rehab effect on old lender TL's?

Anonymous — Sat, 07 Feb 2015 00:57:44 GMT

UPDATE!

Navient has added their new TL, ECMC has been deleted, Citibank was deleted on Equifax but not Experian, Salie Mae TL's remain. I still have a little work to do to get SM to delete their TL's.

Best news of all, I got a +79 point jump in my score!!

Re: UPDATE: Re: Rehab effect on old lender TL's?

Anonymous — Thu, 05 Mar 2015 20:37:05 GMT

UPDATE -- Sallie Mae is so far refusing to modify TL's.

Both ECMC and Citibank deleted their TL's on the rehabbed loans promptly. I sent Sallie Mae a letter requesting the same on 2/7/15 (I'd be happy if all they do is delete the default notations). Now's where the fun begins. I call SM and speak to a rep. who tells me she needs to transfer me to the department that handles credit reporting. I then get transferred to ECMC! The ECMC rep has no idea why Sallie Mae would send my call to them. So, I call back. I spend the next 45 minutes trying to explain Section 682.405 to the rep., which includes long periods of being on hold while she presumably talks to a supervisor. After 30 minutes, I'm told that they will NOT modify their TL's in any way and I have to file a dispute with the CRA's. When I ask why Sallie Mae is choosing to willingly violate Federal law, I'm put on hold again for 15 minutes. When the rep. comes back, she tells me that they have my letter and the "back office department" is working on it. When I ask when I can expect a response, I'm unbelievably put on hold AGAIN for another 10 minutes. I'm finally told I will receive a response on March 13th.

The ironic part of all of this is that, NAVIENT (the new subsidiary of Sallie Mae) is the current server of the rehabbed loans! One would think that Navient would be more cognisant of their old SM service records.

Has anyone else had headaches of this level with Sallie Mae?

Re: UPDATE: Re: Rehab effect on old lender TL's?

Anonymous — Fri, 06 Mar 2015 15:26:25 GMT

Keep us updated on whether or not you get those off. I battled it out with Sallie Mae last year after my rehab, they never removed them. In fact, I disputed the old TL's last year and Sallie Mae gifted me a nice 120 days past due on seven of the 9 TL's after they updated the dispute, score dropped 43 points on equifax. At first I was like "Well, that's the last time I ever dispute something". I looked back recently and found all this out. The 120 day late they updated my account with was during my rehab! Ive never been late a day since I entered the rehab program.

Another wierd thing is that on my TU report, Sallie Mae has all my loans listed twice. One TL has an entire history of on time payments, status paid in full. No deragatory info at all. Then the exact same loan has the original TL lates, loan paid through goverment insurance.

Bottom line, whatch these goons... Watch them closely, they have no clue what they are doing. Its like watching toddlers play with a Cray super computer.

Re: UPDATE: Re: Rehab effect on old lender TL's?

Anonymous — Sat, 07 Mar 2015 15:37:04 GMT

Unbelievable!!

I awoke today to an alert from my Identity Guard service -- Navient has added notations to my CR that I am disputing their account info! NO! Why would I dispute an account paid timely and in good standing? All I want them to do is change the Sallie Mae TL's, as they're required to do by law.

Now what?

UPDATE: Now battling Sallie Mae/Navient on two fronts!

Anonymous — Wed, 18 Mar 2015 14:23:01 GMT

I fired off a dispute letter to Navient stating that I never disputed anything on their TL's. I specifically made the point that it is a new account in good standing (the first payment isn't even due until later this month), and that there is no basis to dispute anything. They took all of 6 days to issue a response saying the dispute is accurate. They clearly didn't even bother to investigate anything.

The alleged "dispute" took 9 points off my EX score, so now I'm pissed.

I fired off a more aggressive letter on the 17th demanding that they remove the dispute notations, or provide proof of the alleged Navient dispute. I suspect what happened is they took my request for the old Sallie Mae TL's to be removed and attributed that dispute to my Navient TL's. It's the same company with the same customer service address and they can't keep their accounts straight.

So now I'm fighting Sallie Mae/Navient on two fronts!

Re: UPDATE: Now battling Sallie Mae/Navient on two fronts!

Anonymous — Wed, 18 Mar 2015 17:45:27 GMT

Its a tough battle with them. My disputes with them get me nowhere. Ive actually just recently abandonded ship on repairing any Sallie Mae/Navient TL's. My goal is to get a home, I can probably hit around 700 by the end of this year with all of the terrible Sallie Mae/Navient TL's. I'll refinance in a few years when the last late payment falls off my CR.

Its really disheartning to know that, as a consumer, theres next to nothing that can be done with Sallie Mae/Navient. Too bad these things can be handled face to face. Face to face interations always have a better outcome in my opinion. Its kind of like a nasty bill collector that gets mouthy with you, I always think to myself "If we were face to face, would you still talk that way to me?"

Re: UPDATE: Now battling Sallie Mae/Navient on two fronts!

Anonymous — Thu, 19 Mar 2015 01:56:27 GMT

After you finished your rehab did they remove the default notation from your account? Is your issue they didn't remove the default or that their tradelines are still on your report? From what I have read from other members Sallie Mae usually gives a hard time about deleted the actual tradelines, but they MUST remove any default notation after you complete rehab. None of the lenders are required to delete the tradelines or any past late notations however most do.

Re: UPDATE: Now battling Sallie Mae/Navient on two fronts!

Anonymous — Thu, 19 Mar 2015 02:40:53 GMT

All I'm asking is that Sallie Mae remove the defaults (as they are required to do by law) -- so far they refuse. The loans were also previously serviced by Citibank, and they removed their TL's entirely.

Re: UPDATE: Now battling Sallie Mae/Navient on two fronts!

Anonymous — Fri, 20 Mar 2015 00:04:04 GMT

Some of my loans had the status updated, some were reported late while I was paying on the rehabed loan, us dept of ed loans reported lates all the way into mid 2014, some loans are completely gone depending on which credit buearu I look at. My rehab was finished in early 2013. I'm actually looking into hiring a lawyer to deal with this mess, I'm at wit's end with this battle. No one at Navient os US Dept of Ed cares, all I here is everything is being correctly reported.

Re: UPDATE: Now battling Sallie Mae/Navient on two fronts!

Anonymous — Wed, 01 Apr 2015 16:37:45 GMT

The 30-day period for Sallie Mae to respond to my dispute on their reporting expired on 3/16/15 without response. I have sent letters to all three CRA's. Now what?

Re: UPDATE: Sallie Mae has responded!

Anonymous — Fri, 17 Apr 2015 20:50:55 GMT

The latest update to my Sallie Mae/Navient saga:

Sallie Mae has now changed their reporting to "paid or paying as agreed", but they have not removed any of the late pay reporting.

Section 682.405 states (after loan rehab), that the prior holder of the loan must: "request that any consumer reporting agency to which the default was reported remove the record of default from the borrower's credit history", and "the prior holder of the loan must, within 30 days of receiving the notification from the guaranty agency, request that any consumer reporting agency to which the default claim payment or other equivalent record was reported remove such record from the borrowr's credit history."

I realize this is open to interpretation, but doesn't "default claim payment" and "other equivalent record" mean the late pay notations as well? Should I keep poking the bear, or let it be?

Re: UPDATE: Sallie Mae has responded!

Anonymous — Fri, 17 Apr 2015 20:54:34 GMT

@Anonymous wrote:
The latest update to my Sallie Mae/Navient saga:

Sallie Mae has now changed their reporting to "paid or paying as agreed", but they have not removed any of the late pay reporting.

Section 682.405 states (after loan rehab), that the prior holder of the loan must: "request that any consumer reporting agency to which the default was reported remove the record of default from the borrower's credit history", and "the prior holder of the loan must, within 30 days of receiving the notification from the guaranty agency, request that any consumer reporting agency to which the default claim payment or other equivalent record was reported remove such record from the borrowr's credit history."

I realize this is open to interpretation, but doesn't "default claim payment" and "other equivalent record" mean the late pay notations as well? Should I keep poking the bear, or let it be?

They are require to removed the default status as well as any derogatory marks reported after the loan officially defaulted. They are not required to remove derogatory marks that were reported prior to default, although many lendors do.

Re: UPDATE: Sallie Mae has responded!

Anonymous — Sat, 18 Apr 2015 16:46:18 GMT

What about the fact that Sallie Mae failed to alter their TL's within 30 days when notified of the loan rehab, or that they failed to respond to my dispute within 30 days -- they failed to act timely in both cases. Shouldn't I make a stink about that?

Re: UPDATE: Sallie Mae has responded!

SCF — Sat, 18 Apr 2015 17:53:11 GMT

It normally takes 60-90 days for updates to happen after a rehab is complete. The information has to populate through a number of computer systems - so between the fact that it takes time for Sallie to get and verify the completion, and then to report, and then it takes time for the CRAs to actually update your report, it's just slow.

As far as their non-response to your dispute - you did the right thing by escalating to the CRAs, and it looks like you got the right result. It's not great that Sallie Mae didn't respond why they were supposed to, but there's not a lot to be done about it. You could try using this information in a goodwill letter, but I think those letters get better responses when they are a "sob story" or a "positive change" storyline rather than being angry at the lender.

Re: UPDATE: Navient response.

Anonymous — Wed, 22 Apr 2015 16:27:43 GMT

To recap, during the time that I was trying to get Sallie Mae to remove the default notations after my SL's were rehabbed, Navient reported that I was disputing the current accounts that are in good standing. The dispute took a few ticks off my score.

I received the following letter from Navient today: "Per your request we have removed the compliance code from all your accounts. Please follow up with credit reporting agencies. Account previously in dispute - investigation complete, reported by data furnisher. "

Question: what is a "compliance code"?

Re: UPDATE: Navient response.

Anonymous — Fri, 23 Dec 2016 15:00:50 GMT

Just curious where you've ended up with this endevour ... I've just started down the rehab path myself.