UPDATE: Best method to dispute SL payment history (+ have evidence of forbearance)

[Namaste7]

Background: Between 2014 and 2015, two loans were on medical/hardship forbearance. However, these loans were reported as late for a 2-3 month period depending the CRA. A dispute was filed 2+ years later but the CRAs stated that the lender verified. No further action was taken until this week. We called the loan servicer and the agent confirmed the accounts reflected the forbearance for full period in their system; however, the change was done after the forbearance request was processed. The rep did not understand why the CRAs were not updated. Ultimately, the agent was able to send a summary which detailed the status and shows evidence of forbearance in the periods the lates were reported on the CRA. The agent recommending filing a dispute since they would not be able to change the reporting status since the loans are paid-off and closed.

Question: Now that we have evidence that those periods are covered by forbearance, what is the best way to dispute (snail mail, online or phone)? Any tips on language to use?

Conclusion: Accounts are reporting accurately after CRA disputes were submitted online. This post doesn't represent a recommendation just an outline of the steps taken.

• Obtain reports for the CRAs to see if there were any changes. The errors were still reported in the payment history and account status.
• Submitted an online dispute with 1 CRA.
  • The dispute included the account history information provided by the lender that evidences full payment history.
  • The initial dispute request was resolved within two weeks.  The tradeline payment history and account status were updated accurately.
• Submitted online dispute with other CRAs.
  • Within a week, each CRA updated the tradeline payment history and account status correctly.

Case closed 👍

[calyx]

Snail mail it with copy of the proof.
I used the online/uploading tools for my initial dispute, and it didn't work, plus I used tracking just to make sure it got there.
I don't think there are any trigger words, but keep it as concise as you can.

I would also make a digital copy and keep it in google drive/dropbox, btw, so if you need to call them for some reason, during the dispute, you can get it to them asap  (I ended up needing that with TU, oddly enough - the other two were cake).

[Anonymous]

Are you using FICO 8 credit reports?
The customer service at the servicer is 9/10 not familiar with the policies of the CB. Be careful about taking their advice about what should and should not have happened. In this case, the CB is under no obligation to change anything. The higher education act days that your payment record must be reported accurately.
Having said that, some have still had success with a dispute, using the letter. In your case, I would caution doing this with any account that is not showing 90 or more, and maybe not even with 90 day lates if they are actually not reporting a 120+ day late. The dispute could work in your favor or it could even add a late worse that was already there. In the case of a 60+ day late, the sting will lessen over time. If they updated it to add a 90+ then your score will take a hit.
It might be worth the potential gain it it might be worth waiting out the last few years and trying to get an early Exclusion. Something to think about.
Hope this helps.

[Namaste7]

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@Anonymous- I appreciate the feedback and understand your points; however, it seems odd for delinquent reporting to be the right answer in period where payments were not required.

Before disputing with the CRAs, we may escalate the matter with the Servicer to see if someone with more authority will oblige the request to correct the CB reporting since they acknowledge no payments were due in the period that was reported delinquent.

[Anonymous]

@Namaste7 I'm very sorry. I misread it. I thought you were talking about a retroactive forbearance, and you clearly said forbearance.
I think this information is coming from the servicer. It's the servicer's problem and the CB may or may not agree to "overrule" their reporting. I've seen a few cases where the CB refused it, despite proof and I think it's misreporting on the servicer's end.
You can dispute and see where that goes. But at the same time I would also start a complaint with the student loan Ombudsman. I'm saying this because I believe that you are correct, the best option would be to talk with a specialist with the servicer. But it can take a while (a month?), to get the Ombudsman complaint to process. You can always cancel it if you it resolved. People have mixed results. I personally only do it because it's technically the correct process. Then you can submit the CFPB complaint. Or you can just skip the Ombudsman straight to the CFPB complaint. Some people do that too.

Many people have had success with the Consumer Financial Protection Bureau's complaint process. Upload Evey document you have and then some. Correspondence, bills, phone logs, etc. I had a great response, the servicer fixed the problem immediately after months of gaslighting me.

[Anonymous]

I read it one more time and I have a question.

"We called the loan servicer and the agent confirmed the accounts reflected the forbearance for full period in their system; however, the change was done after the forbearance request was processed."

Does that mean that they did not immediately apply the forbearance that they had already processed in a timely manner and had to go back and updated it later OR does it mean that by the time they finished processing the forbearance, some of the period included in the forbearance had already passed. There is a very important distinction between the two.

[Namaste7]

They did not apply the forbearance that they had already processed in a timely manner (i.e., meaning it was their error). This occurred at two different times on the account. The correction to the earlier period was handled properly internally and with the CRAs; however, the second correction was procssed internally but not with the CRAs.

[Mookey67]

Did you apply for the forbearance/deferment before the account became delinquent and was negatively reported or was it backdated to cover past due? If you applied after the fact then the un fortunately the negative reporting is valid and I would caution a dispute.

[Mookey67]

If they had the forbearance before it was reported and you have proof they did and they failed to process it then that is their error. Request to speak to a supervisor. They have ability to correct over the phone as well as send a credit bureau retraction if proven their error. Since you know it was reported and when, please first ask when it was received before stating anything else. If they say before. Then they have to submit credit bureau retraction. Hope this helps

[Anonymous]

Okay, just had to check. Since they had already notified you the forbearance was applied, it's their fault for sure The date on the letter should prove this.
If not, you will have a very strong case with the CFPB complaint. But if you speak with the specialist, I have had them manually correct complex errors that regular reps have told me didn't exist or couldn't be fixed.
Good luck.