topic Re: Multiple Servicers on Default Loans in Student Loans

Multiple Servicers on Default Loans

Anonymous — Mon, 13 Jul 2020 19:28:51 GMT

Hello All,

Working on my DW file now. She has multiple servicers on her studeent loans. So she has all 5 loans being reported by all 3 servicers. The latest servicer is Debt Management Services. We never dealt with U S DEPT OF ED/GSL/ATL or FedLoan Services. Loans have been paid. All tradeline are reporting incorrectly. Some are reporting with late payments on periods of forebearance, Status are 120+ Late, etc.

Question is, can all the servicers report on these account or only the latest/current (Debt Management Services)?

U S DEPT OF ED/GSL/ATL - Loan 1

U S DEPT OF ED/GSL/ATL - Loan 2

U S DEPT OF ED/GSL/ATL - Loan 3

U S DEPT OF ED/GSL/ATL - Loan 4

U S DEPT OF ED/GSL/ATL - Loan 5

FED LOAN SERVICES - Loan 1

FED LOAN SERVICES - Loan 2

FED LOAN SERVICES - Loan 3

FED LOAN SERVICES - Loan 4

FED LOAN SERVICES - Loan 5

DEBT MANAGEMENT SERVICES - Loan 1

DEBT MANAGEMENT SERVICES - Loan 2

DEBT MANAGEMENT SERVICES - Loan 3

DEBT MANAGEMENT SERVICES - Loan 4

DEBT MANAGEMENT SERVICES - Loan 5

Re: Multiple Servicers on Default Loans

calyx — Thu, 16 Jul 2020 17:32:19 GMT

All of the servicers that have handled the loans can report them. The ones that are no longer handling them should not be updating them any more. DMS would be the Collections Agency (CA), and I would expect to at least see two entities reporting (OC and the CA). Student loans tend to be transferred between agencies, which means multiple servicers could be reporting in a small period of time (I think I was up to 5 at one point, because my loans had passed between so many lenders).

From the list - it looks like the loans have defaulted at some point. If this is true and they're paid, then the previous servicers would still be on the report (until 7y from the date of default) -
Can you pull the file from the Dept of Ed to see what has "officially" happened to them to figure out what is wrong? It should also list the different agencies/servicers that the loans have passed through.

This site has a number of good links: https://fiscal.treasury.gov/dms/resources/federal-student-loans.html

Re: Multiple Servicers on Default Loans

Anonymous — Thu, 16 Jul 2020 18:09:39 GMT

@calyx It just shows DMS as a servicer, which has been paid and consolidated under Navient now. It doesn't show a list of the servicers that have handled the loans. We never dealt with FedLoan which is the issue.

Re: Multiple Servicers on Default Loans

calyx — Thu, 16 Jul 2020 18:20:59 GMT

@Anonymous wrote:
@calyx It just shows DMS as a servicer, which has been paid and consolidated under Navient now. It doesn't show a list of the servicers that have handled the loans. We never dealt with FedLoan which is the issue.

I would contact FEDLOAN and ask them to remove the tradelines from your account (keep records).
If that doesn't work, dispute with the CRAs (keep records).

If that doesn't work, then file a complaint with the CFPB to get it removed.

Re: Multiple Servicers on Default Loans

Anonymous — Thu, 16 Jul 2020 18:30:03 GMT

@calyx wrote:
@Anonymous wrote:
@calyx It just shows DMS as a servicer, which has been paid and consolidated under Navient now. It doesn't show a list of the servicers that have handled the loans. We never dealt with FedLoan which is the issue.
I would contact FEDLOAN and ask them to remove the tradelines from your account (keep records).
If that doesn't work, dispute with the CRAs (keep records).
If that doesn't work, then file a complaint with the CFPB to get it removed.

CRA removed 3 out of 6, and 'verified' the other 3 which doesn't make much sense.