Charged-Off SLs being double reported - Help!

[Anonymous]

In 2009 I had 11 SL accounts (each disbursement was treated as a seperate loan, some as little as $1000) chare off.

The lender on these accounts was Key Bank, but the loands were administered by American Education Services (AES) and that's whom I made my payments to.

On my credit report, each of the 11 loans are being reported as charged-off by both Kay Bank and AES, so it looks like I actually have 22 charged-off loans, which is completely inaccurate.

Is there anything I can do to remove this duplicate reporting? Can I demand removal from one or the other? Any other stretegies for rectifying this?

HELP!

[Tazman81]

What is the current status of your loans?  Were these federal or private SLs?  It sounds to me that 1 was the actual company to process the loan and the other was the guarantor of the loan (meaning if you didn't pay, then a claim is filed with the guarantor to get the money back).  In your particular case, I am not sure which is which.  IMO if a claim was paid out by the guarantor then 11 of those credit files should have a comment/code to say such.  But in the essence that the guarantor was not able to get their money back from you, then yes, it would go on your credit again stating they were not able to get their money back.  But one set should be reporting a 0 balance and the other not.  My recommendation would be if these student loans are still in default and they are federal, you should contact them to see about doing a rehabilitation program so that you can get the baddies removed from your credit report.  IMO having half of them not reporting as charge off will not help your score because you still have 11 acounts reported as chargeoff.

[Anonymous]

The loans are private loans.

The loans all still have an outstanding balance - I am making monthly payments on them directly to the original lender, Key Bank.

The original lender, with whom I applied for the loans, signed a promissory note, etc was Key Bank. after the loans went into repayment, I received bills and correspondence from AES. When I made payment, all of my payments were made to AES. However, now, all correcspondence comes from and/or refers to a debt with Key Bank.

Does the above help??

[Anonymous]

On my Experian report, here is how the same account, reported seperately by Key Bank and AES look:

Account Name	KEYBANK NA
Account #	992738637XXXX
Account Type	Education Loan
Balance	$3,531.00
Date Opened	4/1/2003
Account Status Closed         Mo. Payment         Close Account Details Past Due $3,531.00         Payment Status Charge-off

Account Name	AES
Account #	9047073852LA0XXXX
Account Type	Education Loan
Balance
Date Opened	4/1/2003
Account Status Closed         Mo. Payment         Close Account Details Past Due           Payment Status Claim filed with government for insured portion of balance on loan         High Balance           Limit           Terms 292 Months

As you can see, the AES reporting doesn't show a balance at all, but it shows as a stand-alone, failed to pay account, when in reality, both og the above are the exact samw account.

[Anonymous]

I simply want to know whether there is any way to force either Key or AES to stop reported these accounts in a way that make them look like I have twice as many negatives as I do.

[Tazman81]

I am sorry to say, but it looks like it is being reported correctly on your reports.  It sounds like AES was the original loan holder with Key Bank being the guarantor.  When you defaulted with AES, they filed a claim with Key Bank to get their money back and that is why you are now making payments directly to Key Bank.

[IOBA]

Looking at what Key Bank is reporting - it is a charge off. 

Looking at what AES is reporting - they are NOT reporting it as a charge-off, although they are informing readers they had to file an insurance claim to recover some of their money.

So there are only 11 charge offs, not 22 reporting (based on what I can see).

[Anonymous]

IOBA - is it legit that AES's reports would show as derogs too?? As a result of the 11 charge-offs, I have 22 derogs on my credit reports

[IOBA]

Yeah, because you missed payments with them that were owed to them.   They had every right to report it as late.

I know it sucks.   Really sucks.

Now that you are paying Key Bank directly on a payment plan, if you miss or are late with a payment, they can report you as late too.

Where can you go from here?   My suggestion would be to 1) opt out of the CB 2) write a good will letter to AES asking them to delete the negatives since you are now paying on time to Key Bank (and that's visible on your CR, right?) 3) make sure  that you always pay your payment on time, if not early, to Key Bank!  4) if there is ANY way to accelerate your pymts to Key Bank, please do it.   You can always goodwill Key Bank to delete lates if you are always paying early, paying more than required.   Make them happy and they are more likely to be nice about the CR.

Good luck!

[Anonymous]

Thanks for your detailed reply!!

As you an see above, AES isn't just reporting me as late on these 11 accounts, they're showing the accounts as charge-offs ("claim filed with government)... so each account looks like 2 charge-offs - one with Key and one with AES.

And to answer your question, no, Key is not reporting my current payments on my CRs or showing the accounts as current now - those accounts all still show as charged-off (because from what I understand, they still technically are) and haven't been updated at all since they charged off over a year ago. The payment plan is just a way to settle the debt with them. Key told me that the accounts will never be anything other than charged off  and they will never report anything differently - I just have ot wait 7 years for the accounts to drop off at this point.

I owe Key Bank about $90K (law school loans) so it's going to be awhile (years) before they're paid off. Though actually, the $90K is broken into 11 different accounts, some of which have much smaller balances, so I will be able to pay some of them off completely soon, but definitely not the entire sum of all of the loans.

Why would opting out help me??