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I am with 1000%. I weighting this option heavily myself since I have been locked out at every turns. Cause really if you think about it you just wasted a forbearance.
Hi all,
New to this board but I wanted to throw in my 2 cents. I'm on the same boat, missed payments, was approved for a retroactive forbearance, now showing a bunch of lates on my credit report. I contacted FedLoan about this but they refused any assistance, repeatedly. I then submitted a dispute to all 3 CBs along with the Section 623 wording and copies of the forbearance approval letter. They came back and said nothing was to be updated since it was all verified. After a few calls to them I figured it was going nowhere so I went and filed a complaint at https://help.consumerfinance.gov/app/studentloan/ask.
Then I received the following email:
The statement I submitted to them was:
Section 623(a)(2) of the FCRA addresses the duty to correct and update information by "furnishers," or persons who furnish information to consumer reporting agencies ("CRA") such as credit bureaus. It specifically states that this duty extends to all student loan accounts reported to CRAs, regardless of whether they were accurate at one point, because the section requires the furnisher both to "update" accounts as well as to "correct" those that were erroneous when submitted to the CRA. In my case payments were missed and delinquencies were first reported, however, retroactive forbearances were approved which covered the time frame in which the delinquencies took place. As per the FCRA section mentioned above the furnisher has a duty to correct/update this with all credit reporting agencies, regardless of whether they were accurate at one point. I have requested the furnisher to correct and update the information to no avail. I then filed a dispute with Experian, Transunion, and Equifax. I provided them original approval letters from the furnisher of the forbearances in question which included the time frames which they covered. They stated that they sent the information to the furnisher but they did not provide updates regarding the payment history disputed, alleging no errors were present.
We will wait and see...
FedLoan Servicing responded to my CFPB complaint today. Here's the text of their response:
"As explained more fully in the letter/packet of materials uploaded to the CFPB portal in response to the individual's inquiry
No further actions are planned by FedLoan Servicing at this time."
Unfortunately, I can't access the PDF attached to the case on the CFPB site, so I can't see their full rationale.
No matter what else they might say, they completely disregarded the FTC advisory opinion. Hey, I guess if you don't agree with something, completely ignore it, right? My next step is to get a lawyer, unless there's a case for pursuing this with the FTC first. I'm not gonna just roll over for FLS!
I'm in EXACTLY the same boat FLS as you are from 2013. I had 14 trade lines that were in deferment and then retroactive foreberance while awaiting consolidation and they all went 90 days late. I've been fighting with them since. I'd love to join in on a class action with you, had I let these loans go into default and then rehabbed them, the lates would have been removed, instead I have 14 closed loans each reporting 90 days late at some point in 2013. So angry!!
I've got Hyatt Legal Plans coverage through work, so I contacted a local attorney today to see if I could set up a consultation to go over this issue and see if there is any feasible recourse through the legal system.
The consultation is scheduled for 9/2, so I'll keep y'all updated!
Talked to the lawyer this morning, he thinks there's definitely grounds for a suit and would be willing to take it on on a contingent basis. Before filing suit, though, he recommended sending FLS one more strongly worded letter querying why they are disregarding their duty to update their reporting per the FTC advisory opinion and let them know that if they don't update the reporting accordingly, they will be sued for damages.
Off the top of my head, the financial damages he said I could sue for are the increased security deposit my landlord charged me due to my credit score, the difference in interest rates between what I bought my car at last year and what I just refinanced at a few weeks ago, and there was also a job offer that was rescinded a few years ago due to the credit check, but unfortunately I don't think I still have any of that documentation.
I didn't ask him about punitive damages or anything of the sort, but my next step is to dispute FLS' response to the CFPB complaint and go from there.
Glad the lawyer said there's a case!
@Anonymous wrote:Talked to the lawyer this morning, he thinks there's definitely grounds for a suit and would be willing to take it on on a contingent basis. Before filing suit, though, he recommended sending FLS one more strongly worded letter querying why they are disregarding their duty to update their reporting per the FTC advisory opinion and let them know that if they don't update the reporting accordingly, they will be sued for damages.
Off the top of my head, the financial damages he said I could sue for are the increased security deposit my landlord charged me due to my credit score, the difference in interest rates between what I bought my car at last year and what I just refinanced at a few weeks ago, and there was also a job offer that was rescinded a few years ago due to the credit check, but unfortunately I don't think I still have any of that documentation.
I didn't ask him about punitive damages or anything of the sort, but my next step is to dispute FLS' response to the CFPB complaint and go from there.
Glad the lawyer said there's a case!
Good on ya! FLS is ridiculous in their idiotic stance that "retroactive" forebearance does not apply to the reporting of derogs - well, what would even be the point of the "retroactive" part, if its not to address reporting of derogs? That the whole frickin point of it being retroactive! Idiots.