I just pulled my TU report and this account is a student loan which was rolled into a consolidation loan. My score is very good (793) but I don't like the fact that this says "bankruptcy". I have never filed, so I'm assuming it's more the "unrated". Is that something that can be fixed? If so, how should I word it in my letter? Thanks! WACH ED FIN (Individual Account) Account Number xxxxxxx Account Type Installment Account Credit Limit $2,625 (High Credit) Minimum Monthly Payment (Terms) $50 66 Monthly Date Opened October, 1994 Date of Last Activity Not on Record Date Paid Out Not on Record Date Closed Loan Type Student Loan Collateral Description Student loan not in repayment Last Report on June, 2003 Balance Current status Past Due Amount $0 Unrated or bankruptcy $0 Recent Payment History Seven Year Payment History 30 days late: 0 60 days late: 0 90+ days late: 0
If you have never filed for bankruptcy, why should you tolerate someone putting "bankruptcy" anywhere on your credit report, regardless of whether the scoring system sees it? If the CRA puts "unrated" when some information has not been supplied, they can do it without libeling you with "bankruptcy". "Unrated or" is no defense. How about "College graduate or child molester" on your credit report, would that be ok, too? On its face this is damaging BS, recognizable as such by any jury of your peers. Dispute with the CRA as "never filed bankruptcy". If the lender is not specifically reporting "bankruptcy", and the CRA gives you some BS about "$0 balances could be because the account is not rated, but might be due to bankruptcy", file a complaint with the CRA via FTC. There is no reason to put up with this BS.
Be aware that the CRA may respond by removing the whole tradeline, which appears to show a history of reliable payment. Why should you have that tarnished by their BS. You may need to demand that the lender reinsert, or go after the CRA for such a malicious act. Treat it as such, and report it to appropriate agencies.
Failure to accurately report student loans is a current hot button issue with some agencies such as HUD, since it affects the ability of new borrowers and homebuyers to get affordable loans at equitable rates when the main credit history they have is from student loans. This may affect younger, lower income and minority borrowers who have not accumulated long credit histories. Some student loan lenders have deliberately not reported or updated to the CRAs, as a tactic to prevent other lenders from "poaching" their customers. If the "bankruptcy" notation originates with the original lender, it could be viewed as an anticompetitive trade practice, particularly if the new consolidated lender is the same party and is not reporting.
Re: New here... what does this mean I don't think it originates with the lender since my the other 2 bureaus don't say anything about bankruptcy! I believe (and I don't have the printouts with me to check) that they say "paid or paying as agreed" and show a $0 balance. I will dispute it with TU because, as you said, it is libel (I hadn't previously thought of it that way) I guess I'm not terribly concerned about them removing the tradeline (should I be?) I've got 10 years of credit card history (no problems) and a 5 year auto loan (again, no problems there). I've also got my consolidated student loan which I've been paying on for 8 years (again, with no lates or problems). FWIW, I'm 28 and hope to buy a home in 3-5 years. I've never been denied credit and got a good rate on my auto loan. Thanks for all your help so far!
Re: New here... what does this mean Also, for the dispute letter, would something like this suffice? I am writing to dispute the following information in my file. The item I dispute is also circled on the attached copy of the report I received. Regarding WACH ED FIN (Individual Account), the current status is listed as "unrated or bankruptcy". Seeing as how I have never filed bankruptcy this is a libelous statement. I am requesting that the word bankruptcy be removed immediately and that the current status be listed as "unrated". Thanks!
Re: New here... what does this mean You might tighten it up and make it more direct and active and less wordy. Clarity over politeness in indicating what is wrong, and what they must do to fix it. Remember you may be dealing with minimum wage clerks in some low wage area, possibly overseas, who do N transactions per day, and classify anything instantly into predetermined categories.
Re: New here... what does this mean "I have never filed for bankruptcy, and putting "bankruptcy" anywhere on my credit report is libelous. Remove it immediately."
