I have a Direct Student loan that went into default on Jan of 2001, this loan was sent to there "internal collections Dept"and then farmed out to Van Ru Corp. They (Van RU)started a new tradeline under the name the US Dept of Ed w/ a new account number. I still have the old loan on my report that shows a $0 balance (went to collections). My question is can the new account be reported as a OPEN acct. also does it have to be shown as a collections account? The new tradeline looks like a regular installment loan and not a collection. This new account is killing my fico score, and I just started a rehab on it in May 2003. They posted another 120 day on the account and my FICO dropped 51 points!!! BTW, I have disputed it as a Duplicate account and it has came back verified each time. Please Help
Yes, if the OC (the original loan) reports a 0 balance, usually says "sold/transferred," then the CA can report it as an open collection. Technically, it is. No violations here. You can try another dispute tactic, but maybe one of the student loan gurus can find a name and number for you to get some help with this, since you are rehabbing it. There are some reporting issues with studentl loans in general that could work in your favor, but this is not my area of expertise, so I don't know the ins-and-outs of dealing with it.
Lucas, I'm in the process of disputing SEVERAL "sold" student loans as "Rehabilitated". It may take a while but I'll let you know what happens.
