Need Assistance With Duplicate Students Loans That Are Transferred / Sold

[Humbled82]

Hello Forum

I am new to the community and would like to know how can I dispute / remove duplicate student loans an activity designator as transferred / sold. Apparently those loans are now with another company.

Old Company: US DEPARTMENT OF EDU AFSA

New Company: US DEPARTMENT OF EDUCATION

Any assitance would be greatly appreciated

[Anonymous]

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@Humbled82 wrote:

Hello Forum

I am new to the community and would like to know how can I dispute / remove duplicate student loans an activity designator as transferred / sold. Apparently those loans are now with another company.

Old Company: US DEPARTMENT OF EDU AFSA

New Company: US DEPARTMENT OF EDUCATION

Any assitance would be greatly appreciated

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 Are these SLs that appeared after you completed rehab?

Regardless, because they state transferred/sold, it is completely legit (imo), unfortunately, to have both TLs on your CRs.

It is like a mortgage or auto loan that was refinanced, and even with the same lender, they can report the original TL(s) and new TL(s).

I have several defaulted SLs that are in rehab and have CAs also reporting, some were "transferred/sold". I am certain if they were not about to fall off soon (waited out 7 years, but who knows, because of that notation it may be 10 yrs and I will have to wait out each late to drop off at their individual 7 yr marks), that both the original and new TLs would be reporting at the same time, until the original TLs age off.

I would think the only way they would legitimately be duplicate entries is if they both are still reporting at the same time. If they are transferred/sold, they should have stopped reporting at that point and no longer add additional months of reporting. If both TLs are reporting to date, then you may have a case, but I would reach out directly to the SL servicer first before disputing.

Lastly, I would be super cautious disputing SLs. They are famoud for adding additional late marks on. They usually start reporting at the 90d late mark, so that also leaves room to add on 30d and 60d lates, or even lates that were previously not reported.

Good luck!

[Humbled82]

Hi LaHossBoss

I am not sure what rehab entails, but I have not attempted to contact the company. Below is a little more detail to the accounts:

• Date of Last Activity: 4/1/2012
• Balance: $0
• Status: "Pays as Agreed"

Since these are duplicated accounts with a last activity date of 4/1/2012, can I have these disputed to the CRA to have them removed for duplicates and outside of the statue of limitations date (7 year mark)?

[Anonymous]

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@Humbled82 wrote:

Hi LaHossBoss

I am not sure what rehab entails, but I have not attempted to contact the company. Below is a little more detail to the accounts:

• Date of Last Activity: 4/1/2012
• Balance: $0
• Status: "Pays as Agreed"

Since these are duplicated accounts with a last activity date of 4/1/2012, can I have these disputed to the CRA to have them removed for duplicates and outside of the statue of limitations date (7 year mark)

?

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 This is not a derogatory account. Only derogatory accounts are removed at the 7 year mark. Positive TLs (the "paid as agreed"  makes it a positive TL) stay on your CRs 10+ years and you want them to stick around as long as possible!

If these were not from rehab, then you either consolidated some SLs or the original servicer just decided to transfer them to another servicer. There is nothing wrong with those TLs 

Why do you want it removed? It is only helping you showing a thick credit profile with positive reported history. Removing them will most likley lower your AAoA (average age of accounts) and possibly your AoOA (age of oldest account), both would lower your credit scores. Having less accounts on your credit reports is not necessarily a good thing, as these are plder and positive, making them a good thing for your credit reports and scores! If it was sold/transfered, that is not a duplicate account, as I described above. There is literally nothing to dispute.

Good luck!

Edit: for example, I just had my oldest SL that I had consolidated years ago just drop off this month and most of my scores took a 20pt hit because of the loss of age to my credit report. I have my next 4 oldest SLs falling off in October and I am bracing myself for how badly that is going to hurt! I really wish they would have stayed on longer than 10 years from when they were sold/transfered!

[Humbled82]

Thank you for the response LaHossBoss

I was really under the impression that an account being Transfer / Sold would be a negative strike on my credit history. So based upon the status stating "Pays As Agreed" is a positive mark is my understanding?

[Anonymous]

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@Humbled82 wrote:

Thank you for the response LaHossBoss

I was really under the impression that an account being Transfer / Sold would be a negative strike on my credit history. So based upon the status stating "Pays As Agreed" is a positive mark is my understanding?

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Yes, it is considered a positive account with that status. Just because it was transferred/sold does not make it a bad account in itself, unless it was due to defaulting, but then it would not have "pays as agreed" as a status.

At the time of being sold/transferred, it was a positive account. The account was simply refinanced (by you for better terms, like a lower rate, etc.), consolidated (by you to simplify the number of SLs, get into certain repayment programs, or for better terms, etc.) or changed hands (sold/transferred from one servicer to another, through no fault/choice of your own, like the servicer no longer handles SLs or just sold off part of their portfolio). That does not make accounts that are sold/transferred bad to have on your credit.

The positive history within it and it's age will continue to report for at least 10 years from the time it was closed/sold/transferred.

Positive accounts can still have lates within the history, as the lates themselves do not make an account a derogatory one. Like any other account with a positive status, the account will remain 10 yrs+, but the late(s) will drop off when they hit 7 years old. Meaning for at least 3+ years after those lates drop off (depending of course when they happened during the course of the loan), there would be at some point no reported lates (it would have an entirely positive account history) and continue to help your AAoA and possibly your AoOA. So any lates it once had will eventually no longer hurt that account and only help your credit for years to come!

I hope that clarifies a little further!