What should a written settlement / resolution include?

[Anonymous]

I need some help working out how to approach a possible resolution with Navient. Is this something I should hire a lawyer to write? I’ve posted in the student loan forum about my ongoing dispute with Navient. Basically despite having confirmation that my payment was $0, they marked all my loans as late, defaulted me and put my loans in collections. I don’t want to rehash it all here since there is a post about it, but it’s mindboggling how Navient has messed up. My borrower’s advocate there acknowledges that this stuff isn’t my fault. They never even contacted me and even reminded me to recertify my IBR toward the end, but internally they were reporting me late to the CRA’s and kept my tax refund.

I may be naïve in thinking this, but I am optimistic that a resolution is coming as soon as this coming week. I’ve never had a dispute with a company that has caused me significant harm like this, or required that they fix something for me. I want to be 100% certain that the damage to my credit is fixed and that I’m not going to end up paying more for these loans due to wrongly applied interest or fees.

I want to make sure that once they agree to fix this, it is fixed the way I need it to be. How do I make sure I get the result that is promised? I know getting it in writing is super important, but do I just write a list of what I want and have them agree over email? Is there anything specific a written agreement should say?

Should I specifically list each loan that was impacted and what marks need to be removed from my report, or is just saying remove all lates from all loans? Do I address other issues that aren’t related to this incident but are still errors on their side (ex: a few years ago they reported two lates 90-120 during deferment) or save that for another time? Do I specify that I want my tax refund returned to me even though Ascendium is the one who told DoEd to keep it and I’m working with Navient to get a default reversal?

Any advice would be so appreciated!!

[calyx]

Honestly - I would start with the Dept. of Ed directly.  They have ombudsmen that can help you navigate issues with servicers
https://studentaid.ed.gov/sa/redirects/ombudsman-ed-gov
I don't know if they can help with your issue, but it sounds like something that is right in their wheelhouse.

ETA: that website is a hot mess.  Here, have a toll free number   877-557-2575

[Anonymous]

Thanks, but I contacted them weeks ago and they no longer help work out issues. They basically just listen and then pass out phone numbers to expedited customer service departments. They say to call back if the servicer’s Ombudsman or advocate don’t call me back, but then when I called back, they said they aren’t allowed to act as an intermediary. They just will call and ask the servicer why they didn’t follow up. I said it seems like their website says otherwise and she said they can’t do that anymore. So I think their wings have been clipped. But maybe it’s worth calling once I know Navient will fix it, and they can help work that part out? I’ll try that.

I don’t know but they have been a huge non-starter so far. They are a disappointment for sure, because their website (at the time I called at least) had a picture chart thing of how they help, but the girl said they can only issue out referrals for borrowers to talk to the expedited customer service and pass out that phone number (which I already had). I don’t understand their function at all.

For them to not do more to help with a case as easy to prove as mine, where the servicer is clearly in the wrong, makes me think they are completely useless in less obvious cases.

[calyx]

Oh, dang - I'm sorry that they don't help.    It's been an age since I contacted an Ombudsman and they used to be more useful.

So yeah, a letter with all of your proof to Navient, CMRR (certified mail return receipt) for a record, and then maybe either a lawyer's help or filing a complaint with the CFPB if nothing changes.  It sucks that you're going through this, and I know servicers are slow on updating/fixing things on the best of days

[Anonymous]

Thanks. I’ve been dealing with this crap for almost 2 months. It’s like a full time job now. BUT it will be worth the hassle and all the frustration because I believe it will get fixed eventually! Hopefully this week!!

They have all the proof and have acknowledged that this isn’t my fault. So at least there is that!

I think I will just prepare a document this weekend and get extremely specific about what needs to be fixed and what I want to see happen. This way if Navient does decide to fix it i’ll have my list ready. That way when they put something in writing I can make sure all my boxes are ticked.

[Anonymous]

I didn't read your other thread, but wanna address a few things. Yes, an agreement is better in writing, should identify the parties, their titles, and their authority to perform said actions and that they do in fact agree to do whatever exactly you want done and when it will be completed by. The more specific, the better. Specifically list each loan, although saying edit it to reflect paid or remove all lates, or whatever is fine. I think a reference to removing all lates on loan #123 is fine, you don't gotta list each late mark, but list each loan separately.
Why not ask for more now while you can, as far as the other 2 lates. IDK about the tax refund, didn't read it. Good Luck. Use email or CMRRR.

[Anonymous]

Oh great info! Thanks! I’ll be referencing your list. Truth be told, they can keep my tax refund if they have to! I just want my credit report fixed!

[Anonymous]

Sorry one thing I left out that I feel is important: include the consideration. What I mean by that is they’re doing something for you but it’s in return for you’re doing something for them. Make sure you include both of these to be legally sufficient.

For instance in return for paying this amount, you, jon doe, of company such and such have the authority to and agree to delete the following tradelines within 45days from the following bureaus...And to never re-insert them.

[Anonymous]

Well, I do intend on paying off my loans over the next 5-6 years, but this isn’t a negotiation in the sense of a debt settlement. It’s essentially that I won’t pursue legal action for breach of contract for not honoring the IBR payment the govt approved me for and then destroying my credit, if they fix all this stuff.

[Anonymous]

That's fine. Any interest is sufficient for legal "consideration." It's typically called a release when you forgo your legal right to seek recovery, as you are releasing them from further liability.

But here, they are performing actions in return for your not exercising your right to pursue legal recourse. So, that's fine, just include it, or the contract is void for lack of consideration, understand? They are doing A in return for you not doing B.