Collections Questions - PLEASE ADVISE!!!

[Anonymous]

So, I have a question about some defaulted student loans that I was hoping someone could help me with... On all three of my CRs, I have two separate entries for IL Designated Account Purchase Program (IDAPP) that each have a DOFD of 10/2008. Each of these two entries also have a "Date Updated" entry and a "Date Closed" entry of 07/31/2009 and a estimated date of removal of 08/2015. Furthermore, there are also comments that indicate that the account was sold to ISAC as a collections account, which is where the problem is.

When looking for these entries under the IL Student Assistance Commission (ISAC) listing, I found two corresponding collections accounts, much like the OCs. The problem is that these two listings are both estimated to be removed from my CR on 06/2016 - almost a full year after the OC's listing! Additionally, these two listings show a "Date Opened" and a "Last Payment Made" entry both for 07/27/2009 (the same month the OC sent the accounts to collections).

I can obviously tell that the ISAC listings are incorrectly listing the date that the OC sent the accounts to collections as the DOFD, which is going to keep the entries on my CRs for an extra year, but I don't know how to fix this. Should I just dispute with the CRA? Are there any "key terms" I need to include in my dispute to ensure they resolve in my favor? Should I wait until the OC entries fall off before disputing the collections or do them now? Any advice is greatly appreciated!!

[davidsl]

You don't mention whether these accounts are paid. If they are, thank you and congratulations! I should think 'key terms' is the enclosure of copies of your paid notes. Otherwise, it's safe to surmise that 8 years on your financial picture has brightened. You could try asking the creditor for help. If they're willing to work with you, in exchange for for your offer to pay your obligations, can they remove the derogatory information? You could try to negotiate better terms. Will they waive fees and penalties? Did they buy the notes entirely or a percentage? Will they consolidate and allow you to repay a percentage of THAT balance?

Most creditors would rather have something than nothing. My own experiences in asking for help have been very positive. Good luck.     

[RobertEG]

Your question is answered by FCRA 623(a)(5), which defines the procedure that a debt collector must follow in obtaining and reporting the DOFD.

Step 1 is the requirement that if the consumer's credit report includes a reporting of the DOFD by the original creditor, then the debt collector must report that same date.

That appears to be the applicable requirement in your situaion.

Step 2 applies to situations where the OC has not reported a DOFD to the consumer's credit file.  In that situation, the debt collector is required to contact the OC and attempt to obtain the DOFD directly from them.  If the OC gives them a date, they must report that date.  However, if attempts to get the DOFD from the OC fail, then they are permitted to make their best estimate, but in no case may they report a DOFD that is later than the date they received collection authority.

Since the debt collector reported the date they received collectino authority, they apparently asserting and relying upon that provision of sectin 623(a)(5).

However, since you state that they OC has reported the DOFD, then they are required to have reported that date, and cannot estimate the DOFD as being the date they acquired collection authority.

I would send the debt collector a direct dispute of the accuracy of their reported DOFD, citing FCRA 623(a)(5) as establising the proper reporting to be that previously provided by the creditor.  Include a copy of the portion of your credit report that shows their reported collection info as documentation of their current reporting.