*new error in Sallie Mae reporting* WTH happened - why is FICO contradicting itself? Please help!

[Anonymous]

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@haulingthescoreup wrote:
I work for a really large (really, really, really large) bureaucracy, and every day I have to untangle a mess that was created because someone umpty-diddle departments away read a memo that told them that they needed to do something, tried to figure out what the correct action would be, punched a couple of buttons, and went happily home at the end of the day, not realizing that all hell has broken loose somewhere else, because this bureaucrat did not realize the consequences of this button-punching.

I keep visualizing the Sallie Mae person who started all this as being a bit like the Dwight Schrute character on The Office. Someone who obsessively follows rules, dotting i's and crossing t's, without caring how things work out in real life.

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According to posts today, it looks as if you were correct about the button pusher! Sounds like SM is trying to correct this issue. Thanks goodness!

[Anonymous]

I also called SM advocate and she advised me they would correct the issue this week. She also stated that this will happen again but they may not correct it next time. I switched back to normal payments, makes me wonder if this is a way to force the people who can afford it back to normal payments. They are hurting for money acording to what I have read. Just my two cents

[TXturnaround]

My score dropped 50pts.  I just called the Complaint number and I was told that they are working on it and that they would be contacting the CRA's by the end of the week about the "glitch".  That's an expensive glitch.  I switched to "level" payments today. 

[Anonymous]

Just thought I'd chime in...

I was notified of a 140 pt drop in my credit score. Sickening indeed...all of my inquiries last night (cross-refencing credit reports, downloading payment history, etc) indicated to me that this had to be some sort of error or glitch...thankfully that's how this seems to be playing out. 

I spoke with David at the consumer advocate line...he was extremely helpful and shared exactly what others have been saying, that an error occured as a result of a change in the way they report the graduated repayment plans. Should be corrected by the end of the week but could take up to a month to be reflected by the credit bureau(s). He said the safest thing to do would be to switch to a level plan if you can afford it, although this was just a bug and he's not aware that this will happen again (which does conflict with what some others are saying).

If the rules change and this does become looked at as a serious handicap of credit worthiness I would say action at the state government level is appropriate.  Until then, I think contacting newspapers and local representatives is, IMHO, a bit premature.

Good luck everyone.

Message Edited by delfonic on 05-12-2008 10:02 AM

Message Edited by delfonic on 05-12-2008 10:03 AM

[Anonymous]

What number at Sallie Mae is everyone calling to get a customer advocate?  My score just dropped 115 overnight and I am scheduled to apply for a mortgage loan in two weeks.  Sounds like the fastest way is to switch back to a level plan from graduated?  Is Sallie Mae really saying this is the fastest was to fix the issue?  If I do this, how long will it take to update on credit reports.  I feel a class action lawsuit coming.  There are people who are probably closing on houses this week all over the country and when they get their credit pulled a few days before it is really going to mess things up for everyone. 

[Anonymous]

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kevinh wrote:

What number at Sallie Mae is everyone calling to get a customer advocate?  My score just dropped 115 overnight and I am scheduled to apply for a mortgage loan in two weeks.  Sounds like the fastest way is to switch back to a level plan from graduated?  Is Sallie Mae really saying this is the fastest was to fix the issue?  If I do this, how long will it take to update on credit reports.  I feel a class action lawsuit coming.  There are people who are probably closing on houses this week all over the country and when they get their credit pulled a few days before it is really going to mess things up for everyone. 

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They are working on a fix regardless of your current plan....what some people are doing is changing to a level repayment plan to prevent any future issues with the language that gets added to the credit report .for these graduated repayment plans.

Message Edited by delfonic on 05-12-2008 11:20 AM

[Anonymous]

how do you change back to a level payment plan. I currently have a consolidated loan that is graduated 'I believe' I pay one amout for so many years then a slightly higher amount for the rest of the life of the loan.  But I have not found any options to go to a level payment plan, or do you have to call in about this?

[Anonymous]

I just got off the phone with Sallie Mae and I was on a graduated payment plan.  So, I just switched back to the LEVEL payment plan over the phone which doesn't increase my payment by too much.  I think if you have a graduated, you cannot switch back to level online, you actually have to call Sallie Mae and have them do it for you.  I guess if they ever fix it, we can switch back to graduated.  This is completely rediculous.  I am cosolodating all my private loans with AES, so I will not have to deal with Sallie Mae any longer.  I am just hoping they can fix this before my loans are closed out so that it doesn't look bad.  I am applying for a mortgage in a couple of weeks and cannot have a -115 points right now!  I talked to someone in India of course...she did not know about the glitch until she talked to a supervisor.  Couldn't give me a timeframe as to when it would be fixed either.

[Anonymous]

Okay hear is the real scoop. My Fico intends on doing nothing. Like many of you I just received the completely dismissive email saying that they can only suggest that we call Sallie Mae and have them correct the problem. Not likeley. Sallie Mae is just trying to get more money from us. I was told by a representative that the only way to correct this was to change the payment plan that I have been on for three years, thereby increasing my payments. So here are the options, pay more to Sallie Mae or they will hold your credit score ransom and you will have to pay more for every other credit involved financial move. This is nothing short of extortion. Like many of you I had a great score and have never defaulted or been late on a payment. In fact I recently paid off a high interest loan. They are unfairly, and to my mind (to be frther investigated) unlawfully pressuring us into making bigger payments. The only way to combat this will be to stick together. I refuse to change my contract with them when my end of the bargain has been upheld. Please please please contact local newspaper and media outlets. I placed a tip with CNN -- they won't cover this and we will get no where if we do not apply and maintain pressure. The worst thing we could do is change our payment schedules. It will only insure less protection from unscrupulous practices from Sallie Mae in the future. Also today may be a good time to get your free yearly Equifax report as proof of your previous payment history. (PRINT IT OUT)

[Anonymous]

My husband has several Sallie Mae private student loans and just pulled his score...dropped 120 POINTS!  He is on the phone with them right now.  The lady in India is telling him that he cannot switch back to a Level payment plan from the graduated plan and stating that the info they are reporting is correct to the credit bureaus that being on an extended payment plan is indeed "making arrangements for partial payment".  UHG! So he asked to be transferred to a supervisor.  This is rediculous.  I also just submitted a news tip to CNN.  I think we need to blanket the media with this and let them know what is going on.